Home Inns & Hotels Management Inc. (NASDAQ: HMIN), a leading economy hotel chain operator in China, today announced that it has signed a legally binding memorandum of understanding to acquire 100% ownership of Yunshang Siji Hotel Management Companyfrom Kunming Department Store (Group) Co., Ltd., a publicly listed company in the domestic A-share market, for a cash purchase price of RMB 230 million, subject to satisfactory due diligence and customary purchase price adjustments. The transaction is expected to close on April 1, 2014.
Yunshang Siji operates an economy hotel chain consisting of 27 leased-and-operated hotels and 8 franchised-and-managed hotels (with approximately 3,500 rooms in total) principally located in Yunnan Province.
"This transaction brings us a high-quality group of hotels in the southwest region of China and further enhances the value and geographic diversity of the Home Inns Hotel brand," said Mr. David Sun, the Company's chief executive officer. "We are confident that we will be able to build on the strong performance and market presence of these hotels through our management and operational expertise. The southwest region of China, including Yunnan Province, offers ample growth opportunities. The operating metrics from our existing economy hotels in the region have been strong. This addition to the Home Inns Group portfolio is consistent with our growth and investment strategy to further penetrate key markets of China."
Home Inns Group is a leading economy hotel chain in China based on number of hotels and hotel rooms as well as geographic coverage of the hotel chain. Since the Company commenced operations in 2002, it has built Home Inns as one of the best-known economy hotel brands in China. In October of 2011, the Company acquired Motel 168, another well-known hotel chain in China, as its second economy hotel brand. Home Inns Group aims to offer a consistent product and high-quality services to primarily serve the fast growing population of value-conscious individual business and leisure travelers who demand clean, comfortable and convenient lodging. The Company's ADSs, each of which represents two ordinary shares, are currently trading on the NASDAQ Global Select Market under the symbol "HMIN."
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