SearchMedia Holdings Limited (“SearchMedia”) (NYSE Amex: IDI) (NYSE Amex: IDI.WS), one of China's leading nationwide multi-platform media companies, and Home Inns & Hotel Management Inc. (“Home Inns”) (NASDAQ: HMIN), a leading economy hotel chain in China, today announced that they have entered into a memorandum of understanding to reach a definitive agreement giving SearchMedia certain rights to create a nationwide advertising network at Home Inns’ hotels throughout China.
As of March 31, 2012, Home Inns operated 1,479 hotels in 219 different cities in China and had over 7.9 million unique individual members. The definitive agreement, the terms of which are still under discussion, is expected to include a variety of advertising formats including billboards, elevator advertising and lobby advertising at certain existing Home Inns locations and future new hotels. SearchMedia will be responsible for managing all marketing, advertising and resources related to the agreement.
Peter W.H. Tan, Chief Executive Officer of SearchMedia, remarked, “We believe the agreement will enhance shareholder value for both companies. Home Inns has an extensive network of hotels throughout China, with a strong presence in heavily trafficked urban locations. It is widely anticipated that over 60% of China’s population would live in urban locations by the year 2020. We believe the agreement will allow us to provide a very attractive long term advertising solution for our international, national and local advertisers, through the nationwide consumer reach of the network. We will also be able to offer comprehensive campaigns that include rooftop billboards, lobby displays, elevator posters and other forms of advertising. We anticipate that the agreement will apply to certain Home Inns locations in Beijing, Shanghai and Guangzhou initially and be rolled out to lower tier cities later.”
Home Inns Chief Executive Officer David Sun added, “We are pleased to be partnering with SearchMedia and to generate additional revenue opportunities from our hotel network while providing valuable marketing information to our guests. We expect the agreement to be mutually beneficial.”