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Home Inns Group recently announced that it has signed a legally binding memorandum of understanding to acquire 100% ownership of Yunshang Siji Hotel Management Company.
Home Inns & Hotels Management Inc. ("Home Inns Group"), a leading economy hotel chain operator in China, recently announced that it has signed a legally binding memorandum of understanding to acquire 100% ownership of Yunshang Siji Hotel Management Company from 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 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." |
