As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on Home Inns Investor Relations website at english.homeinns.com.

I will now turn the call to our CEO, David Sun.

David Sun

Hello, everyone, and thank you for joining us today to discuss our first quarter results. Our core Home Inns operational performance was stable and Motel 168 integration continued to generate positive results despite a tough market environment and similarly low travel volume in the first quarter of 2012.

We reported total revenue of RMB1.26 billion for the first quarter, which is slightly above our guidance. This 66% revenue growth included consolidated first quarter results from Motel 168 that we acquired on September 30, 2011. Excluding Motel 168, our core business generated revenue growth of 23% organic growth. This was mainly result from new unit growth while performance from our mature hotel group remained stable.

Most specifically, 716 hotels that were in operation for at least 18 months during the first quarter gained 1.3% in RevPAR on the same hotels base year over year. As of March 31, 2012, nearly 30% of total of 1,168 Home Inns hotels were located in the third-tier cities and below, where overall ADR are meaningfully low in general than upscale cities market. These low-tier cities are still on their way to achieve full economic expansion even with our unique geographic diversity [inaudible] average daily rates flat at RMB165 year over year and combined with an occupancy rate of 84.4% compared with 85.1% in the same period of 2011. We generated RevPAR of RMB149 compared to RMB150 a year ago. These operating results are reasonable [sound] and within our expectations for the first quarter.

Occupancy rate at Motel 168 was 17.4%, down from 73.5% in the previous quarter. ADR grew 3% to RMB158 from RMB154 in the fourth quarter of last year. The resulting RevPAR of RMB111 compared to RMB113 last quarter was in line with our expectations. During the first quarter, we further reduced the scale of food and beverage operations as Motel 168 by 10% from last quarter, but still achieved total RMB327 million of revenues, which was at the high end of our guidance in the fourth quarter.

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