Home Inns to Acquire the Remaining Minority Stake in Home Inns Beijing And All of the Equity Interest in Beijing City Sunshine H
25 Junio 2007 - 8:36PM
PR Newswire (US)
SHANGHAI, China, June 25 /Xinhua-PRNewswire/ -- Home Inns &
Hotels Management Inc. announced today that it has entered into a
definitive agreement to acquire the remaining 4.412% stake in its
majority owned subsidiary, Home Inns & Hotels Management
(Beijing) Ltd. ("Home Inns Beijing"), and another definitive
agreement to acquire Beijing City Sunshine Hotel Management Inc
("Beijing City Sunshine"), a hotel management company with three
leased-and-operated hotels in Beijing. Acquisition of the Remaining
4.412% Stake in Home Inns Beijing Home Inns currently owns 95.588%
of Home Inns Beijing, the subsidiary that operates all Home Inns'
leased-and-operated hotels, while the remaining 4.412% is owned by
a joint venture partner which is a subsidiary of Beijing Tourism
Group. Upon acquisition of the remaining 4.412% stake, Home Inns
Beijing will become a wholly-owned subsidiary of Home Inns. Home
Inns has agreed to pay a total consideration consisting of RMB 60
million and 441,661 ordinary shares of Home Inns. This transaction
is expected to close in the third quarter of 2007. Home Inns
Beijing generated revenue of RMB 567.9 million and RMB174.6 million
in 2006 and the first quarter of 2007, respectively, which
contributed to approximately 96.5% and 95.4% of Home Inns' total
revenues in 2006 and the first quarter of 2007, respectively.
"After the acquisition, we will own all of the economic interest in
Home Inns Beijing, and eliminate the portion of the minority
interest in our income statement currently attributed to this
4.412% stake in Home Inns Beijing," said Ms. May Wu, Home Inns'
Chief Financial Officer, "In addition, it is a strategically
important move for Home Inns as the new and simplified corporate
structure may allow us to substantially shorten the capital
injection and currency conversion cycle at Home Inns Beijing, which
in turn will better serve our rapid expansion activities."
Acquisition of Beijing City Sunshine Hotel Management Inc. Beijing
City Sunshine has two leased-and-operated economy hotels in
operation and one additional hotel under development in Beijing.
Home Inns will acquire Beijing City Sunshine in its entirety, for
an undisclosed amount of cash. This acquisition is expected to
close in early third quarter and is expected to add approximately
RMB 6 million in revenues for the remainder of 2007. "We are very
pleased to bring into our portfolio these three additional hotels
with excellent locations in Beijing," said David Sun, Home Inns'
Chief Executive Officer. "We are even more excited about converting
these properties into Home Inns hotels and achieving Home Inns'
performance at these hotels in the foreseeable future." About Home
Inns Home Inns is a leading economy hotel chain in China based on
the number of hotels and hotel rooms, as well as the geographic
coverage of the hotel chain. Since Home Inns commenced operations
in 2002, it has become one of the best- known economy hotel brands
in China. Home Inns offers 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. Home Inns' ADSs, each of
which represents two ordinary shares, are currently trading on the
NASDAQ Global Market under the symbol "HMIN." For more information
about Home Inns, please visit http://english.homeinns.com/ . Safe
Harbor This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the remainder of 2007 and quotations from
management in this announcement, as well as Home Inns' strategic
and operational plans, contain forward-looking statements. Home
Inns may also make written or oral forward-looking statements in
its periodic reports to the Securities and Exchange Commission (the
"SEC"), in its annual report to shareholders, in press releases and
other written materials and in oral statements made by its
officers, directors or employees to first parties. Statements that
are not historical facts, including statements about Home Inns'
beliefs and expectations, are forward-looking statements. Forward-
looking statements involve inherent risks and uncertainties. A
number of factors could cause actual results to differ materially
from those contained in any forward-looking statement, including
but not limited to the following: our anticipated growth
strategies; our future business development, results of operations
and financial condition; expected changes in our revenues and
certain cost or expense items; our ability to attract customers and
leverage our brand; trends and competition in the lodging industry;
our ability to hire, train and retain qualified managerial and
other employees; our ability to develop new hotels at desirable
locations in a timely and cost-effective manner; the expected
growth of the Chinese economy hotel market; and Chinese
governmental policies relating to private managers and operators of
hotels and applicable tax rates. Further information regarding
these and other risks is included in our registration statements on
Form F-1 and other documents filed with the SEC. Home Inns does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided
in this press release and in the attachments is as of June 26,
2007, and Home Inns undertakes no duty to update such information,
except as required under applicable law. For investor and media
inquiries, please contact: Angela Li Home Inns & Hotels
Management Inc. Tel: +86-21-32189988, ext. 2004 Email: DATASOURCE:
Home Inns & Hotels Management Inc. CONTACT: Angela Li of Home
Inns & Hotels Management Inc., +86-21- 32189988 x2004, or Web
site: http://english.homeinns.com/
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