Full Description

Home Inns & Hotels Management Inc. (Hotel Inns), incorporated in May 2006, is an economy hotel chain in China. The Company develops and operates economy hotels across China under its Home Inn brand. The Company either leases real estate properties, on which it develops and operates hotels or it franchises its brand to hotel owners or manages these hotel properties. The Company refers to the former type of hotels as leased-and-operated hotels and to the latter type of hotels as franchised-and-managed hotels. As of December 31, 2008, the Company’s Home Inns hotel chain consisted of 326 leased-and-operated hotels in operation with an additional 54 leased-and-operated hotels under development and 145 franchised-and-managed hotels in operation with an additional 60 franchised-and-managed hotels under development, covering 108 cities in China.

As of December 31, 2008, the Company’s Home Inns hotel chain, including the Top Star hotels it acquired, consisted of 471 hotels in operation and an additional 114 hotels under development, covering 108 cities in China. The Company’s Home Inns hotel chain covers most metropolitan areas in China. A Home Inns hotel has 80 to 160 guest rooms. Each hotel has a standardized design, appearance, decor, color scheme, lighting scheme and set of guest amenities in each room, including a bedding package featuring mattresses meeting the standards of four-star hotels in China, free in-room broadband Internet access, a comfortable work space, air-conditioning and a supply of cold and hot drinking water. Home Inns hotels are located to provide its guests with access to business districts, ground transportation hubs, highways, shopping centers, industrial development zones, colleges and universities, and/or large residential neighborhoods.

For its leased-and-operated hotels, the Company leases properties from real estate owners or lessors and Home Inns & Hotels Management Inc is responsible for hotel development and customization to conform to the standards of Home Inns, as well as repairs and maintenance and operating expenses of properties over the term of the lease. For its franchised-and-managed hotels, the Company franchises its Home Inn brand to franchisees who are property owners, lessors or existing hotel operators, and the Company is responsible for managing these hotels, including the hiring and appointing of the general managers of these hotels. The Company also operates seven leased-and-operated hotels through separate joint ventures with third parties. Home Inns & Hotels Management (Shanghai) Co., Ltd. owns 51% of three joint ventures, 65% of one joint venture, 70% of two joint ventures and 75% of one other joint venture.

Home Inns & Hotels Management Inc. competes with Jinjiang Star, Motel 168, 7 Days Inn, Han Ting, Green Tree Inn and Super 8.