Homeinns Hotel Group - American (NASDAQ:HMIN)

WEB NEWS

Monday, April 4, 2016

Going Private News

SHANGHAI, April 1, 2016 /PRNewswire/ -- Homeinns Hotel Group ("Homeinns" or the "Company") (HMIN), a leading economy hotel chain in China, announced today the completion of its merger (the "Merger") with BTG Hotels Group (CAYMAN) Holding Co., Ltd ("Merger Sub"), a wholly-owned subsidiary of BTG Hotels Group (HONGKONG) Holdings Co., Limited ("Holdco"), pursuant to the previously announced Agreement and Plan of Merger (the "Merger Agreement"), dated as of December 6, 2015, by and among the Company, Holdco, Merger Sub and, solely for purposes of certain sections thereof, BTG Hotels (Group) Co., Ltd. Holdco has acquired the Company (other than the Rollover Shares (as defined below)) in a cash transaction valued at approximately US$1.2 billion and as a result of the Merger, the Company ceased to be a publicly traded company.

Under the terms of the Merger Agreement, which was approved by the Company's shareholders at an extraordinary general meeting held on March 25, 2016, all of the Company's ordinary shares (each, a "Share") issued and outstanding immediately prior to the effective time of the Merger (the "Effective Time") have been cancelled in exchange for the right to receive US$17.90 per Share, and all of the Company's American depositary shares ("ADSs"), each of which represents two Shares, issued and outstanding immediately prior to the Effective Time have been cancelled in exchange for the right to receive US$35.80 per ADS, in each case, in cash, without interest and net of any applicable fees and withholding taxes, except for (i) 14,726,165 Shares held by Poly Victory Investments Limited, 14,400,765 Shares held by Ctrip Travel Information Technology (Shanghai) Co., Ltd., 375,500 Shares held by Neil Nanpeng Shen, co-founder, co-chairman of the board of directors and an independent director of the Company, 3,458,745 Shares held by Smart Master International Limited, 30,138 Shares held by Mr. David Jian Sun, the chief executive officer and a director of the Company, 228,806 Shares held by Peace Unity Investments Limited, 84,272 Shares held by Jason Xiangxin Zong, president and chief operating officer of the Company, and 317,294 Shares held by Wise Kingdom Group Limited (collectively, the "Rollover Shares"), issued and outstanding immediately prior to the Effective Time, each of which has been converted into and become one validly issued, fully paid and non-assessable ordinary share, par value US$0.005 each, of the surviving company; and (ii) Shares owned by shareholders who have validly exercised and have not effectively withdrawn or lost their dissenters' rights under the Cayman Islands Companies Law, which have been cancelled and will entitle the former holders thereof to receive the fair value thereon in accordance with such holders' dissenters' rights under the Cayman Islands Companies Law.

Shareholders of record entitled to the merger consideration will receive a letter of transmittal and instructions on how to surrender their ordinary share certificates in exchange for the merger consideration. Shareholders should wait to receive the letter of transmittal before surrendering their ordinary share certificates.


Thursday, March 17, 2016

Comments & Business Outlook

Fourth Quarter 2015 Financial Results

  • Total revenues increased 2.6% year over year to RMB 1,677.4 million (US$258.9 million) for the fourth quarter of 2015. For the full year 2015, total revenues decreased 0.2% year over year to RMB 6,671.1 million (US$1,029.8 million).
  • Basic and diluted EPS Non-Gaap was $0.10 vs last years was $0.28.

Tuesday, March 15, 2016

Going Private News

SHANGHAI, March 15, 2016 /PRNewswire/ -- Homeinns Hotel Group ("Homeinns" or the "Company") (HMIN), a leading economy hotel chain in China, today announced BTG Hotels (Group) Co., Ltd., a PRC joint stock company that is listed on the Shanghai Stock Exchange ("BTG Hotels"), has received clearance from the Ministry of Commerce of the People's Republic of China pursuant to the Anti-Monopoly Law of the People's Republic of China ("PRC Anti-Monopoly Clearance") with respect to the merger (the "Merger") contemplated by the previously announced Agreement and Plan of Merger (the "Merger Agreement"), dated December 6, 2015, by and among the Company, BTG Hotels Group (HONGKONG) Holdings Co., Limited ("Holdco"), BTG Hotels Group (CAYMAN) Holding Co., Ltd. ("Merger Sub"), and, solely for purposes of certain sections thereof, BTG Hotels.

BTG Hotels has now received all of the required regulatory approvals to consummate the Merger, including the PRC Anti-Monopoly Clearance, the approval by the State-owned Assets Supervision and Administration Commission of the Beijing Municipal Government of the PRC and the overseas investment filing with the PRC National Development and Reform Commission. In addition, BTG Hotels shareholders approved the Merger in January 2016.

The Company's extraordinary general meeting of shareholders (the "EGM") to consider and vote on, among other things, the Merger Agreement, the Plan of Merger and the transactions contemplated thereby, including the Merger, will be held on March 25, 2016 at 10:00 a.m. (Shanghai time), at the executive offices of the Company located at No. 124 Caobao Road, Xuhui District, Shanghai 200235, People's Republic of China.  As previously announced, each of Institutional Shareholder Services Inc., Glass Lewis & Co., LLC and Egan-Jones Proxy Services has recommended that the Company's shareholders vote FOR, among other proposals, the proposal to authorize and approve the Merger Agreement, the Plan of Merger and the transactions contemplated thereby, including the Merger.

The Company's shareholders and ADS holders are urged to read carefully and in their entirety the transaction statement on Schedule 13E-3 and the proxy statement attached as Exhibit (a)-(1) thereto, as amended, filed with the U.S. Securities and Exchange Commission (the "SEC"), which can be obtained, along with other filings containing information about the Company, the proposed Merger and related matters, without charge, from the SEC's website (www.sec.gov).


Wednesday, March 9, 2016

Going Private News

SHANGHAI, March 9, 2016 /PRNewswire/ -- Homeinns Hotel Group ("Homeinns" or the "Company") (HMIN), a leading economy hotel chain in China, today announced that Glass Lewis & Co., LLC ("Glass Lewis") has recommended that Homeinns shareholders vote FOR, among other proposals, the proposal to authorize and approve the Company's previously announced agreement and plan of merger (the "Merger Agreement"), dated as of December 6, 2015, by and among the Company, BTG Hotels Group (HONGKONG) Holdings Co., Limited ("Holdco"), a wholly owned subsidiary of BTG Hotels (Group) Co., Ltd., a PRC joint stock company that is listed on the Shanghai Stock Exchange ("BTG Hotels"), BTG Hotels Group (CAYMAN) Holding Co., Ltd ("Merger Sub"), a wholly owned subsidiary of Holdco, and solely for the purposes of certain sections thereof, BTG Hotels. Pursuant to the Merger Agreement, Holdco will acquire the Company (other than the rollover shares as specified in the Merger Agreement) for cash consideration of US$17.90 in cash per ordinary share or US$35.80 in cash per American depositary share ("ADS") of the Company, each representing two ordinary shares, in each case, without interest and net of any applicable withholding taxes, and Merger Sub will be merged with and into the Company with the Company continuing as the surviving company (the "Merger").

Glass Lewis is a leading independent international proxy advisory firm, and its voting analyses and recommendations are often relied upon by institutional investment firms, mutual funds and fiduciaries throughout the world.

The Company's extraordinary general meeting of shareholders (the "EGM") to consider and vote on, among other things, the Merger Agreement, the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands (the "Plan of Merger") and the transactions contemplated thereby, including the Merger, will be held on March 25, 2016 at 10:00 a.m. (Shanghai time), at the executive offices of the Company located at No. 124 Caobao Road, Xuhui District, Shanghai 200235, People's Republic of China.

Shareholders of record at the close of business in the Cayman Islands on March 4, 2016 will be entitled to attend and vote at the EGM. ADS holders as of the close of business in New York City on February 23, 2016 will be entitled to instruct The Bank of New York Mellon, in its capacity as the ADS depositary, to vote the shares represented by their ADSs at the EGM, and are reminded that the deadline to deliver their voting instructions to the ADS depositary is 5:00 p.m. (New York City time) on March 21, 2016.

The Company's shareholders and ADS holders are urged to read carefully and in their entirety the transaction statement on Schedule 13E-3 and the proxy statement attached as Exhibit (a)-(1) thereto, as amended, filed with the U.S. Securities and Exchange Commission (the "SEC"), which can be obtained, along with other filings containing information about the Company, the proposed Merger and related matters, without charge, from the SEC's website (www.sec.gov).


Tuesday, March 8, 2016

Going Private News

SHANGHAI, March 7, 2016 /PRNewswire/ -- Homeinns Hotel Group ("Homeinns" or the "Company") (HMIN), a leading economy hotel chain in China, today announced that Institutional Shareholder Services Inc. ("ISS") and Egan-Jones Proxy Services ("Egan-Jones") have recommended that Homeinns shareholders vote FOR, among other proposals, the proposal to authorize and approve the Company's previously announced agreement and plan of merger (the "Merger Agreement"), dated as of December 6, 2015, by and among the Company, BTG Hotels Group (HONGKONG) Holdings Co., Limited ("Holdco"), a wholly owned subsidiary of BTG Hotels (Group) Co., Ltd., a PRC joint stock company that is listed on the Shanghai Stock Exchange ("BTG Hotels"), BTG Hotels Group (CAYMAN) Holding Co., Ltd ("Merger Sub"), a wholly owned subsidiary of Holdco, and solely for the purposes of certain sections thereof, BTG Hotels. Pursuant to the Merger Agreement, Holdco will acquire the Company (other than the rollover shares as specified in the Merger Agreement) for cash consideration of US$17.90 in cash per ordinary share or US$35.80 in cash per American depositary share ("ADS") of the Company, each representing two ordinary shares, in each case, without interest and net of any applicable withholding taxes, and Merger Sub will be merged with and into the Company with the Company continuing as the surviving company (the "Merger").

ISS and Egan-Jones are leading independent international proxy advisory firms, and their voting analyses and recommendations are often relied upon by institutional investment firms, mutual funds and fiduciaries throughout the world.

The Company's extraordinary general meeting of shareholders (the "EGM") to consider and vote on, among other things, the Merger Agreement, the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands (the "Plan of Merger") and the transactions contemplated thereby, including the Merger, will be held on March 25, 2016 at 10:00 a.m. (Shanghai time), at the executive offices of the Company located at No. 124 Caobao Road, Xuhui District, Shanghai 200235, People's Republic of China.

Shareholders of record at the close of business in the Cayman Islands on March 4, 2016 will be entitled to attend and vote at the EGM. ADS holders as of the close of business in New York City on February 23, 2016 will be entitled to instruct The Bank of New York Mellon, in its capacity as the ADS depositary, to vote the shares represented by their ADSs at the EGM, and are reminded that the deadline to deliver their voting instructions to the ADS depositary is 5:00 p.m. (New York City time) on March 21, 2016.

The Company's shareholders and ADS holders are urged to read carefully and in their entirety the transaction statement on Schedule 13E-3 and the proxy statement attached as Exhibit (a)-(1) thereto, as amended, filed with the U.S. Securities and Exchange Commission (the "SEC"), which can be obtained, along with other filings containing information about the Company, the proposed Merger and related matters, without charge, from the SEC's website (www.sec.gov).


Wednesday, February 24, 2016

Going Private News

SHANGHAI, Feb. 23, 2016 /PRNewswire/ -- Homeinns Hotel Group ("Homeinns" or the "Company") (HMIN), a leading economy hotel chain in China, today announced that it has called an extraordinary general meeting of shareholders (the "EGM"), to be held on March 25, 2016 at 10:00 a.m. (Shanghai time), at the executive offices of the Company located at No. 124 Caobao Road, Xuhui District, Shanghai 200235, People's Republic of China. The meeting is being held to consider and vote on, among other matters, the proposal to authorize and approve the previously announced agreement and plan of merger (the "Merger Agreement") dated as of December 6, 2015, among the Company, BTG Hotels Group (HONGKONG) Holdings Co., Limited ("Holdco"), a wholly owned subsidiary of BTG Hotels (Group) Co., Ltd., a PRC joint stock company that is listed on the Shanghai Stock Exchange ("BTG Hotels"), BTG Hotels Group (CAYMAN) Holding Co., Ltd ("Merger Sub"), a wholly owned subsidiary of Holdco, and solely for the purposes of certain sections thereof, BTG Hotels, the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands (the "Plan of Merger"), and the transactions contemplated thereby, including the Merger (as defined below).

Pursuant to the Merger Agreement and the Plan of Merger, Merger Sub will be merged with and into the Company (the "Merger") with the Company continuing as the surviving company. If completed, the proposed Merger would result in the Company becoming a privately held company and the American depositary shares of the Company (each representing two ordinary shares) ("ADSs") no longer being listed on the NASDAQ Global Market. In addition, the ADSs and the Company's ordinary shares represented by the ADSs will cease to be registered under Section 12 of the Securities Exchange Act of 1934.

The Company's board of directors, acting upon the unanimous recommendation of a special committee of the Company's board of directors composed entirely of independent directors who are unaffiliated with the buyer group or any of the management members of the Company, approved the Merger Agreement, the Plan of Merger and the transactions contemplated thereby (including the Merger). The board of directors recommends that the Company's shareholders and ADS holders vote FOR, among other things, the proposal to authorize and approve the Merger Agreement, the Plan of Merger and the transactions contemplated thereby (including the Merger).

Shareholders of record at the close of business in the Cayman Islands on March 4, 2016 will be entitled to attend and vote at the EGM. ADS holders as of the close of business in New York City on February 23, 2016 will be entitled to instruct The Bank of New York Mellon, in its capacity as the ADS depositary, to vote the ordinary shares represented by their ADSs at the EGM.


Monday, December 7, 2015

Going Private News

SHANGHAI, Dec. 7, 2015 /PRNewswire/ -- Homeinns Hotel Group ("Homeinns" or the "Company") (HMIN), a leading economy hotel chain in China, today announced that it has entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with BTG Hotels Group (HONGKONG) Holdings Co., Limited ("Holdco"), a wholly owned subsidiary of BTG Hotels (Group) Co., Ltd., a PRC joint stock company that is listed on the Shanghai Stock Exchange and principally engaged in the management of hotels and tourism destinations (SHA:600258) ("BTG Hotels"), BTG Hotels Group (CAYMAN) Holding Co., Ltd ("Merger Sub"), a wholly owned subsidiary of Holdco, and solely for the purposes of certain sections of the Merger Agreement, BTG Hotels.

Pursuant to the Merger Agreement, Holdco will acquire the Company (other than Rollover Shares as defined below) for cash consideration of US$17.90 in cash per ordinary share of the Company (each, a "Share") or US$35.80 in cash per American depositary share of the Company (each, an "ADS"), each of which represents two Shares.  This represents an 18.7% premium over the closing price of US$30.17 per ADS as quoted by the NASDAQ Global Market on June 10, 2015, and a premium of 29.4% and 36.6%, respectively, over the Company's 30- and 60- trading day volume-weighted average price as quoted by the NASDAQ prior to June 10, 2015, the last trading day prior to the Company's announcement on June 11, 2015 that it had received a non-binding "going private" proposal from the buyer group (the "Buyer Group") comprised of BTG Hotels, Poly Victory Investments Limited ("Poly Victory"), Ctrip.com International, Ltd. ("Ctrip"), Neil Nanpeng Shen, Co-Founder and Co-Chairman of the Board of Directors of the Company, James Jianzhang Liang, Co-Founder and Director of the Company and Chairman of the Board of Directors and Chief Executive Officer of Ctrip, and David Jian Sun, Chief Executive Officer and Director of the Company.  The merger consideration also represents an increase of approximately 9.1% from the original US$32.81 per ADS and US$16.405 per Share offer price in the Buyer Group's non-binding "going private" proposal dated June 11, 2015.

Subject to the terms and conditions of the Merger Agreement, at the effective time of the merger (the "Effective Time"), Merger Sub will merge with and into the Company, with the Company surviving the merger as the surviving company (the "Surviving Company") under Cayman Islands law (the "Merger"), and each Share issued and outstanding immediately prior to the Effective Time, will be cancelled and cease to exist in exchange for the right to receive cash consideration equal to US$17.90, and each ADS will be cancelled in exchange for the right to receive cash consideration of US$35.80 per ADS, in each case, without interest and net of any applicable withholding taxes, except for (i) certain of the Shares (the "Rollover Shares") held by Poly Victory, Ctrip Travel Information Technology (Shanghai) Co., Ltd., a wholly owned subsidiary of Ctrip, Neil Nanpeng Shen, Smart Master International Limited, David Jian Sun, Peach Unity Investments Limited, Jason Xiangxin Zong, President and Chief Operating Officer of the Company, and Wise Kingdom Group Limited (collectively, the "Rollover Shareholders"), (ii) Shares (including Shares represented by ADSs) held immediately prior to the Effective Time by the Company or any of its subsidiaries or by the Company's ADS depositary and reserved for future issuance under the Company's share incentive plan, which Shares will be cancelled without payment of any consideration or distribution therefor, and (iii) Shares held by holders who have validly exercised and not effectively withdrawn or lost their rights to dissent from the Merger pursuant to Section 238 of the Companies Law of the Cayman Islands, which Shares will be cancelled at the Effective Time of the Merger for the right to receive the fair value of such Shares determined in accordance with the provisions of Section 238 of the Companies Law of the Cayman Islands.  At the Effective Time, all of the Rollover Shares will be converted into ordinary shares of the Surviving Company.

As of the date of the Merger Agreement, the Rollover Shareholders beneficially own in aggregate approximately 34.9% of the issued and outstanding Shares.

BTG Hotels and Holdco intend to fund the Merger through the proceeds from a committed loan facility of up to US$1.2 billion from Industrial and Commercial Bank of China Limited, New York Branch, pursuant to a debt commitment letter.

The Company's board of directors, acting upon the unanimous recommendation of the special committee formed by the board of directors (the "Special Committee"), unanimously approved the Merger Agreement and the transactions contemplated by the Merger Agreement (the "Transactions"), including the Merger, and resolved to recommend that the Company's shareholders authorize and approve the Merger Agreement and the Transactions, including the Merger. The Special Committee, which is comprised solely of independent directors of the Company who are unaffiliated with Holdco, Merger Sub or any member of the Buyer Group or management of the Company, exclusively negotiated the terms of the Merger Agreement with the Buyer Group with the assistance of its independent financial and legal advisors.

The Merger is subject to receipt of certain required regulatory approvals specified in the Merger Agreement and is currently expected to close during the first half of 2016. It is also subject to the approval of the Company's shareholders, the approval of BTG Hotels' shareholders, as well as certain other customary closing conditions. Pursuant to the Merger Agreement, the approval of the Merger Agreement and the Transactions by the Company's shareholders requires both (i) a special resolution in accordance with Cayman Islands law by the affirmative vote of holders of Shares representing at least two-thirds of the Shares present and voting in person or by proxy at a meeting of the Company's shareholders (the "Company Shareholders' Meeting"), and (ii) so long as the Shares (excluding Shares held by the Rollover Shareholders) present and voting in person or by proxy at the Company Shareholders' Meeting exceed 50% of all of the issued and outstanding Shares of the Company as of the close of business on the record date established for the Company Shareholders' Meeting, the affirmative vote of holders of shares representing more than 50% of the Shares (excluding the Shares held by the Rollover Shareholders) in person or by proxy at the Company Shareholders' Meeting.

Concurrently with the execution of the Merger Agreement, BTG Hotels, Holdco and the Rollover Shareholders entered into a Support Agreement, pursuant to which the Rollover Shareholders have agreed  (i) to vote all of their respective Shares in favor of the authorization and approval of the Merger Agreement and the Merger and (ii) to receive no cash consideration in the Merger with respect to the Rollover Shares.

The Company and certain other participants in the Transactions will prepare and file with the U.S. Securities and Exchange Commission (the "SEC") a Schedule 13E-3 transaction statement, which will include a proxy statement of the Company.  The Schedule 13E-3 will include a description of the Merger Agreement and contain other important information about the Transactions, the Company and the other participants in the Transactions.


Tuesday, November 10, 2015

Comments & Business Outlook
Third Quarter 2015 Financial Results
  • Total revenues decreased 1.1% year over year to RMB 1,855.9 million (US$292.0 million) for the third quarter of 2015, within the previously provided guidance range of RMB 1,830 million to RMB 1,860 million.
  • Adjusted Diluted (Non-GAAP) was $0.32 vs last years same quarter of $0.35

Mr. David Sun, the Company's chief executive officer, stated, "During the third quarter we experienced an encouraging continued sequential improvement in our business performance with a narrowed like-for-like RevPAR decline, despite sustained macroeconomic challenges.  Our revenue growth and RevPAR remained under pressure given the generally soft external conditions.  However, we are not seeing any signs of worsening in the domestic travel industry and expect the situation to remain stable for the rest of the year.  It is important to note that our focus on developing mid-scale offerings is bearing fruit as Homeinn Plus and Yitel continue to receive very positive market feedback and both are delivering strong results.  Further, we are making solid progress with membership expansion and enhancement of our digital capabilities, with both our member count and mobile user levels reaching record highs."

Mr. Sun continued, "Looking to the balance of the year, while we do expect the external market conditions to stay difficult, we remain a strong believer in China's travel industry and leisure market, which have demonstrated great resilience despite the economic slowdown in China.  With accelerated development of our mid-scale hotels and stringent cost control, we are confident that we will be able to continue weathering a choppy economic environment, further solidifying our leading position in the market, seizing new growth opportunities, and creating value for our shareholders."

Outlook for Fourth Quarter 2015

Homeinns Hotel Group remains committed to its target of opening no fewer than 400 new hotels in the course of 2015, with approximately 25% as mid-scale hotels.

The company expects the total revenues in the fourth quarter of 2015 to be in the range of RMB 1,635 million and RMB 1,655 million.

This forecast reflects the Company's current and preliminary views, and remains subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.3556 to US$1.00, the noon buying rate for September 30, 2015 set forth in the H.10 statistical release of the Federal Reserve Board.


Wednesday, August 12, 2015

Comments & Business Outlook
Second Quarter 2015 Financial Results 
  • Total revenues decreased 1.8% year over year to RMB 1,667 million (US$268.9 million) for the second quarter of 2015, slightly lower than the previously provided guidance of RMB 1,670 million to RMB 1,700 million.
  • Adjusted Diluted (Non-GAAP) $0.35 vs. last years same quarter of $0.27.

Mr. David Sun, the Company's chief executive officer, stated, "During the second quarter, we continued to face challenges associated with sustained difficult market conditions.  Yet, we also continued to take important and necessary steps to make long-term investments in our business.  Revenue growth and RevPAR remained under pressure given the surrounding economic climate. This, coupled with higher pre-opening costs, impacted our overall financial performance. However, we believe that our strategy to accelerate the development of mid-scale hotel offerings serves our overall best interest, given its encouraging performance to date.  Moreover, during the second quarter, there were a number of other quite positive developments.  In addition to further building our mid-scale offerings, Homeinn Plus and Yitel, we had great success in further enhancing our digital capabilities and membership recruitment, with both our mobile app user levels and our membership numbers reaching new highs.  Lastly, we continued to control costs and improve efficiencies. All of this is keeping our operating foundation strong." 

Mr. Sun continued, "As we move into the second half of 2015, we expect the external conditions to remain quite challenging, and we are not counting on a market rebound in the remainder of the year.  However, as we have stated before, we believe that the long-term prospects of the travel and lodging market in China are and will stay very strong and Homeinns is set to remain one of the strongest players in the industry. While further diversifying our product offerings, we will also develop unique ways to engage customers via traditional and digital marketing channels, and additionally maintain strict levels of operating discipline.  This will all work together to ensure Homeinns perform very well over the long-term and deliver value to its customers, employees, business partners and shareholders.

Outlook for Third Quarter 2015

Homeinns Hotel Group remains committed to its target of opening no fewer than 400 new hotels in the course of 2015, with approximately 10% as leased-and-operated hotels and 90% as franchised-and-managed hotels.

The Company expects its total revenues in the third quarter of 2015 to be in the range of RMB 1,830 million to RMB1,860 million.

With respect to the full year, given its performance in the first half of 2015 and the ongoing softer-than-expected market conditions, the Company now expects total revenues for 2015 to be in the range ofRMB 6,550 million to RMB 6,650 million, below the initial guidance provided at the beginning of the year.

This forecast reflects the Company's current and preliminary views, and remains subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.2000to US$1.00, the noon buying rate for June 30, 2015 set forth in the H.10 statistical release of the Federal Reserve Board.


Thursday, June 11, 2015

Going Private News

SHANGHAI, June 11, 2015 /PRNewswire/ -- Homeinns Hotel Group ("Homeinns" or the "Company") (NASDAQ: HMIN), a leading economy hotel chain in China, today announced that its Board of Directors (the "Board") has received a non-binding proposal letter, dated June 11, 2015, from BTG Hotels (Group) Co., Ltd. ("BTG Hotels"), Poly Victory Investments Limited ("Poly Victory"), Ctrip.com International, Ltd. ("Ctrip"), Mr. Neil Nanpeng Shen ("Mr. Shen"), Co-Founder and Co-Chairman of the Board of the Company, James Jianzhang Liang, Co-Founder and Director of the Company and Chairman of the Board of Directors and Chief Executive Officer of Ctrip ("Mr. Liang"), and David Jian Sun, Chief Executive Officer and Director of the Company ("Mr. Sun," together with BTG Hotels, Poly Victory, Ctrip, Mr. Shen and Mr. Liang, the "Buyer Group"), proposing a "going-private" transaction (the "Transaction") to acquire all of the outstanding ordinary shares of Homeinns not already owned by the Buyer Group for US$32.81 in cash per American depositary share ("ADS"), which represents a premium of 20% to the average closing trading price of the Company's ADSs during the past 20 trading days.

The Buyer Group beneficially owns an aggregate of approximately 35% of all of the Company's issued and outstanding ordinary shares.

According to the proposal letter, the Buyer Group intends to fund the consideration payable in the Transaction with a combination of debt and/or equity capital, and rollover equity in the Company. A copy of the proposal letter is attached as Annex A to this press release.

The Board has formed a special committee comprised of three independent, disinterested directors, Messrs. Kenneth Gaw, Terry Yongmin Hu and Arthur M. Wang. The special committee plans to retain legal and financial advisors to assist it in evaluating the Transaction.

The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.


Wednesday, May 13, 2015

Comments & Business Outlook

First Quarter 2015 Financial Results

  • Total revenues were RMB 1.47 billion (US$237.2 million) for the first quarter of 2015, a decrease of 0.1% year over year, but within the recently provided guidance range.
  • Adjusted Diluted (Non-GAAP) RMB0.02 vs. last years quarter of RMB0.34

"We achieved revenue in line with our previously provided guidance, which reflected our expectations for a challenging start to the year in very difficult market conditions," said Mr. David Sun, the Company's chief executive officer. "While we continued to make meaningful progress in rolling out new business initiatives, controlling costs, and driving beneficial efficiencies in our business, the first quarter was one of the most difficult periods for our business since Homeinns was established in 2002. A deepened economic slowdown, the fact that the first quarter is normally our slowest period and the later timing of Chinese New Year versus last year together put rather significant pressure on our revenue per available room, which had a negative impact on our overall profitability for the period."

Mr. Sun continued, "Looking ahead to the remainder of 2015, we are not seeing immediate signs of a market rebound at the moment but remain confident about the long-term prospects of the overall travel and lodging market in China. While the macroeconomic environment can be cyclical, and is out of our control as well as beyond what we can accurately predict at present, we continue to focus on what we can do and have done well consistently, namely refining product offerings, improving customer service, and delivering operating and cost efficiencies, all to ensure we remain as competitive and resilient as possible in the current market. On top of this, we will further develop our mid-scale hotels and continue to drive various new initiatives that are focused on meeting the evolving needs of our customers. We believe that all of this will leave us well positioned to capture opportunities when China's economy improves and deliver long-term value for our shareholders."

Outlook for Second Quarter 2015

Homeinns Hotel Group expects total revenues for the Company in the second quarter of 2015 to be in the range of RMB 1,670 million to RMB 1,700 million.

This forecast reflects the Company's current and preliminary views and is subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.1990 to US$1.00, the noon buying rate for March 31, 2015 set forth in the H.10 statistical release of the Federal Reserve Board


Thursday, March 12, 2015

Notable Share Transactions

SHANGHAI, March 12, 2015 /PRNewswire/ -- Homeinns Hotel Group (NASDAQ: HMIN) ("Homeinns" or the "Company"), a leading economy hotel chain in China, today announced that its Board of Directors has approved a share repurchase program of up to $35 million, effective for one year from March 11, 2015.

Under the program, the Company is authorized to repurchase up to $35 million worth of outstanding American depositary shares ("ADSs") and ordinary shares of the Company from time to time depending on market conditions and other factors and in accordance with relevant rules under United States securities regulations. The repurchase program does not obligate Homeinns to make repurchases at any specific time. Homeinns' Board of Directors will review the share repurchase program periodically and may authorize adjustment of its terms and size accordingly. The share repurchase program will be funded by the Company's available cash balance.

Mr. David Sun, the Company's chief executive officer, commented: "This share repurchase program reflects our confidence in the value of our company, and in the long-term prospects for both our business and the travel and lodging industry in China. We also view this as the beginning of our effort to return cash to shareholders, as we transition to a brand franchising and hotel management company with strong free cash flow generating capability. We believe that the share repurchase program is in the best interest of our shareholders."


Comments & Business Outlook

Fourth Quarter 2014 Financial Results

  • Total revenues increased 1.6% year over year to RMB 1.64 billion (US$263.6 million) for the fourth quarter of 2014 and increased 5.2% to RMB 6.68 billion (US$1.08 billion) for the full year 2014, which was within the guidance range.
  • Adujusted Diluted (non-Gaap) was $0.18 vs. last years same quarter of $0.15.

"We are very gratified that despite sustained market challenges, we met our previously provided revenue expectations for the fourth quarter and achieved year-over-year adjusted net margin improvement for the ninth consecutive quarterly period," said Mr. David Sun, the Company's chief executive officer. "Performance of our mature economy hotels remained relatively resilient despite the market softness. Our franchise focused strategy, effective cost control and productivity enhancement initiatives did a great deal to help protect our margin and bottom line. We are also very pleased with the positive development and performance of our mid-scale Yitel hotels."

Outlook for First Quarter and Full Year 2015

Homeinns Hotel Group targets to open no fewer than 400 new hotels in 2015, including approximately 10% as leased-and-operated hotels and 90% as franchised-and-managed hotels.

Homeinns Hotel Group expects total revenues for the Company for 2015 to be in the range of RMB 6,800 million to RMB 7,000 million. Total revenues for the Company in the first quarter of 2015 are expected to be in the range of RMB 1,445 million to RMB 1,475 million.

These forecasts reflect the Company's current and preliminary views and are subject to change.

Mr. Sun continued, "As we look ahead into 2015, we are not expecting a quick market rebound and therefore we will be careful in balancing the speed of new hotel development with profitability and will also take the opportunity to fine-tune our focus for hotel expansion. The success of our multi-branded platform has given us the confidence to devote more resources to the mid-scale hotel segment by further accelerating Yitel development and rolling out our new brand, Homeinn Plus. Meanwhile, we will focus intently on internal programs to further enhance customer service and the customer experience and improve operating efficiency and cost control effectiveness. On top of this, we will also continue to drive new initiatives such as the online retail platform and the Home Alliance program to capture new opportunities with innovation and technology improvements. Taken together, we believe that all of these initiatives will leave us well placed in 2015 to navigate the market and take full advantage of the market recovery when it arrives. We remain confident about the long-term prospects of the travel and lodging market in China and about our ability to deliver value to shareholders."

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.2046 to US$1.00, the noon buying rate for December 31, 2014 set forth in the H.10 statistical release of the Federal Reserve Board.


Wednesday, November 12, 2014

Comments & Business Outlook

Third Quarter 2014 Financial Results

  • Total revenues increased 7.9% year over year to RMB 1.88 billion (US$305.7 million) for the third quarter of 2014, within the guidance range.
  • EPS Diluted was $0.35 vs. last years same quarter of $0.19.

"During the third quarter, we achieved total revenues within our expectations, as well as year-over-year margin expansion for the seventh consecutive quarter, despite the fact that we are navigating through a soft market environment," said Mr. David Sun, the Company's chief executive officer. "The continued margin expansion was mainly driven by the increased mix of higher-margin revenue contribution from our franchised-and-managed hotels, highlighting continued strong franchise demand in the market as well as the positive impact this part of our business is having on results. The successful execution of our franchise-focused strategy along with our commitment to effective cost control initiatives is clearly helping us deliver stable performance and consistent incremental improvements."

"Looking ahead to the remainder of 2014," Mr. Sun continued, "we currently are not expecting a significant market rebound but do continue to remain confident about the long-term prospects of the travel and lodging market in China. We believe we have a proven and solid underlying business which is resilient under current market conditions and will allow us to capture the long-term opportunities in the industry. Our brands, products, scale, and proven execution track record form a solid business foundation on which we can build. To this end, in the near future, we plan to accelerate the development of Yitel hotels, roll out a new brand, 'Homeinn Plus,' to complement to our existing brand portfolio, and continue to invest in innovative marketing and customer communication initiatives and technology, including growing our mobile and social media platforms. We believe that these important growth initiatives, coupled with our franchise and multi-brand strategies as well as our proven ability to effectively control costs, will allow us to achieve continued profitable growth and solidify our leadership in the industry."

Outlook for Fourth Quarter and Full Year 2014

Home Inns Group reiterates its target to open no fewer than 450 new hotels in 2014. This total is expected to reflect approximately 50 new leased-and-operated hotels, including the acquired Fairyland hotels (formerly known as Yunshang Siji). The balance is expected to consist of no fewer than 400 new franchised-and-managed hotels, highlighting continued strong franchise demand that is contributing a positive return to the business.

Given the continued soft market environment, fewer new leased-and-operated hotels planned for the year, and a lower than expected RevPAR in the Company's mature hotels' performance, Home Inns Group expects total revenues for the Group in the fourth quarter of 2014 to be in the range of RMB 1,625 million to RMB 1,675 million. Therefore, Home Inns Group expects total revenues for the Group for 2014 to be in the range of RMB 6,675 million to RMB 6,725 million, slightly lower than the initial full year expectations the Company provided at the beginning of the year. Nevertheless, the Company expects to deliver year-over-year profitability improvement in the fourth quarter of 2014.

These forecasts reflect the Company's current and preliminary views and are subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.1380 to US$1.00, the noon buying rate for September 30, 2014 set forth in the H.10 statistical release of the Federal Reserve Board.


Wednesday, August 13, 2014

Comments & Business Outlook

Second Quarter 2014 Financial Results

  • Total revenues increased 6.0% year over year to RMB 1.70 billion (US$273.8 million) for the second quarter of 2014, within the guidance range.
  • Adjusted earnings per share (Non-GAAP) was RMB1.69 vs. last years same quarter of RMB1.45.

"We are pleased to report that revenues for the second quarter met our expectations and we achieved the sixth consecutive quarter of year over year margin improvement," said Mr. David Sun, the Company's chief executive officer. "While we have yet to see a full market rebound, we continued to achieve solid performance from our mature hotels, margin expansion driven by the increased mix of higher-margin revenue contribution from our franchised-and-managed hotels, successful execution of our Yitel development plan, and Motel 168 performance gain. All at the same time, we maintained our commitment to effective cost control initiatives and driving improvements in overall productivity. This has all worked together to keep us on track with our plans for the year."

Mr. Sun continued, "As we look forward to the back half of the year, we take comfort in the fact that the macroeconomic environment seems stable and we remain cautiously optimistic about the prospects for the overall travel and lodging market in China. We are confident that we will achieve our full-year target for new hotel openings with a main focus on our multi-brand strategy. As part of the implementation of this strategy, we recently rolled out certain updated corporate branding initiatives through both traditional and new media channels which we believe clearly communicate our brands' positioning and characters and help us effectively attract targeted customers. All in, we believe our solid underlying business and operational structure coupled with our growth initiatives and portfolio development strategies ensure that we maintain our leadership in this dynamic market place, and are well positioned to take advantage of any market recovery opportunities to deliver long-term and superior returns for our shareholders."

Outlook for Third Quarter 2014

Home Inns Group continues to target opening no fewer than 450 new hotels in 2014. This total is expected to reflect approximately 50 new leased-and-operated hotels, including the recently acquired Yunshang Siji hotels. The balance is expected to consist of no fewer than 400 new franchised-and-managed hotels, highlighting continued strong franchise demand that is contributing a positive return to the business.

Home Inns Group expects total revenues for the group in the third quarter of 2014 to be in the range of RMB 1,875 million to RMB 1,895 million.

These forecasts reflect our current and preliminary views and are subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.2036 to US$1.00, the noon buying rate for June 30, 2014 set forth in the H.10 statistical release of the Federal Reserve Board.


CFO Trail

SHANGHAI, August 13, 2014 /PRNewswire/ -- Home Inns & Hotels Management Inc. (NASDAQ: HMIN) ("Home Inns Group" or "the Company"), a leading economy hotel chain in China, today announced the appointment of Ms. Cathy Xiangrong Li as chief financial officer of the Company ("CFO"), effective August 25, 2014. Ms. May Wu, the Company's chief strategy officer and interim chief financial officer, will remain as chief strategy officer after Ms. Li assumes the CFO position.

Ms. Li has more than 20 years of business and finance experience in Hong Kong listed and global Fortune 500 companies in retail and consumer products industries. As the chief financial officer of Hengdeli Holdings Limited (3389.HK), the largest fine watch retailer and wholesaler in Greater China, from 2010 to recently, Ms. Li was responsible for the financial planning and analysis, accounting, tax, treasury, investor relations, and information technologies functions. She was also actively involved in other corporate activities including strategic and business planning, supply chain optimization, and performance and incentive management. Prior to joining Hengdeli, Ms. Li was the corporate finance director of Unilever Greater China Group from 2007 to 2010. Ms. Li joined Unilever in 1993 as a management trainee and held various accounting, finance, and managerial positions in a number of divisions or subsidiaries in China, the United Kingdom, and Singapore between 1993 and 2010.

Ms. Li holds a bachelor's degree in economics jointly awarded by Shanghai University of Finance and Economics and Shanghai International Studies University, with a major in international accounting. She obtained her master's degree in executive management and business administration (EMBA) from China Europe International Business School. Ms. Li is a fellow of the Association of Chartered Certified Accounts (ACCA) and member of the Chinese Institute of Certified Public Accounts.

"I am delighted to join Home Inns, a company that has achieved leadership in China's economy hotel industry through its high-standard product and services delivery and disciplined management execution," said Ms. Cathy Li, the Company's new chief financial officer. "I am especially excited to be joining the Company at a dynamic time as it moves to a multi-brand and management centric platform and constantly works to stay ahead in an ever-changing market environment. I am committed to helping Home Inns continue to excel and look forward to becoming an integrated part of the Company and its management team."

"We view Ms. Li as a valuable addition to our team given her comprehensive financial and business expertise and experience. We are pleased to bring on board such a high calibre professional as Ms. Li and I expect she will make important contributions to the Company's continued execution of its strategies and plans," commented Mr. David Sun, the Company's chief executive officer.

Separately, Home Inns is also announcing today its results for the second quarter of 2014.


Tuesday, May 13, 2014

Comments & Business Outlook

First Quarter 2014 Financial Results

  • Total revenues increased 5.0% year over year to RMB 1.47 billion (US$236.9 million) for the first quarter of 2014, within the guidance range.
  • Diluted Earnings per ADS was RMB0.11 vs last years RMB -0.42.
  • Adj Diluted Earnings per ADS* was RMB0.67 vs. last years same quarter of RMB0.22 an increase of 204.5%.

"Despite continued softness in macroeconomic conditions in the first quarter, we achieved revenues within our target range and are pleased to deliver the fifth consecutive quarter of year over year margin expansion," said Mr. David Sun, the Company's chief executive officer. "While coping with the absence of a full market-wide recovery, we maintained relatively stable performance in our core mature hotels, further increased contributions from our franchised-and-managed operations, implemented further operational enhancements for Motel168, and continued effective cost control initiatives."

Mr. Sun continued, "Looking ahead to the remainder of 2014, we are seeing some early signs of market stabilization but we remain cautious on the outlook for the overall travel market, especially in the business travel segment. Nevertheless, we have proven that our business model and operational structure are resilient under current market conditions. We are also confident that we are well positioned to benefit from any market improvements by executing our franchise and multi-brand development plans and maintaining a sensible expansion pace that will deliver modest but steady revenue growth, sustained margin expansion, and long-term value for our shareholders."


Tuesday, May 6, 2014

Acquisition Activity

SHANGHAI, May 6, 2014 /PRNewswire/ -- Home Inns & Hotels Management Inc. (NASDAQ: HMIN) ("Home Inns Group" or "the Company"), a leading economy hotel chain operator in China, today announced that it has completed its previously announced acquisition of Yunshang Siji Hotel Management Company ("Yunshang Siji"). The acquisition closed on May 1, 2014, with Home Inns Group acquiring 100% ownership of Yunshang Siji from Kunming Department Store (Group) Co., Ltd., a publicly listed company in the domestic A-share market, for cash purchase price of RMB 230 million, subject to customary adjustments.

Yunshang Siji operates an economy hotel chain consisting of 27 leased-and-operated hotels and eight franchised-and-managed hotels (with approximately 3,500 rooms in total) principally located in Yunnan Province. The transaction is consistent with the Company's investment and growth strategy to further penetrate key markets of China. Importantly, it significantly enhances the value and geographic diversity of the Home Inns Group portfolio with the addition of a high-quality group of hotels in the Southwest region of China.

Home Inns Group expects to build on the strong performance and market presence of these hotels by leveraging its management and operational expertise and proven ability to integrate and improve acquired businesses.


Thursday, March 13, 2014

Comments & Business Outlook

Fourth Quarter 2013 Financial Results

  • Total revenues increased 9.8% to RMB 1.61 billion (US$265.9 million) for the fourth quarter of 2013 and increased 10.1% to RMB 6.35 billion (US$1.05 billion) for the full year of 2013, which was within the guidance range.
  •  Adj. Diluted Earnings per ADS* was RMB1.91 an increase of 9.8% of RMB1.74.

"Despite the weak market environment, our revenue results are within expectations, and the Company achieved continued margin expansion for the fourth consecutive quarter in 2013," said Mr. David Sun, the Company's chief executive officer. "We exceeded our new hotel opening target, achieved stable performance from our mature hotels, and delivered improved earnings and profitability through the growth of our franchised-and-managed business, operational improvement from Motel 168 hotels, and effective cost control initiatives and productivity gains."

"While we are experiencing near term challenges in the macro environment, we continue to believe in the long-term growth prospects of China's travel and lodging industry," Mr Sun continued. "In the earlier years, we operated predominantly with the leased-and-operated business model while delivering rapid revenue growth. Today, the Company has transformed into a franchise-focused growth portfolio enabling continued unit growth to strengthen its leadership in market presence. As a result, , we expect a more moderate revenue growth going forward, but we feel confident in the underlying business structure we have built to deliver stable margin expansion, meaningful earnings growth and increasing cash generation to create greater value for our shareholders."

Outlook for First Quarter and Full Year 2014

Home Inns Group targets to open no less than 450 new hotels in 2014, including approximately 70 to 90 leased-and-operated hotels and 360 to 380 franchised-and-managed hotels.

Home Inns Group expects total revenues for the group for 2014 to be in the range of RMB 6,800 million to RMB 7,000 million, representing a growth of 7.0% to 10.2% over 2013. Total revenues for the group in the first quarter of 2014 are expected to be in the range of RMB 1,460 million to RMB 1,490 million.


Tuesday, March 11, 2014

Acquisition Activity

SHANGHAI, March 11, 2014 /PRNewswire/ -- Home Inns & Hotels Management Inc. (NASDAQ: HMIN) ("Home Inns Group" or "the Company"), 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 Company ("Yunshang Siji") 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 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."


Friday, November 15, 2013

Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Total revenues increased 8.8% to RMB 1.74 billion (US$284.2 million), which was within the guidance range.
  • Diluted earnings per ADS $0.62 vs. last years $0.49

"We are pleased to report steady revenue growth and consistent margin expansion for the third quarter," said Mr. David Sun, the Company's chief executive officer. "Even though a market-wide recovery has yet to arrive, our core mature hotels maintained stable performance and Motel 168 generated further operating improvements as we completed all primary integration tasks. Meanwhile, strong development of franchised-and-managed hotels and effective cost control initiatives at the hotel operational level resulted in margin expansion for the third consecutive quarter."

Mr. Sun continued, "We are optimistic about the stable and gradually-improving market conditions in 2014 and beyond. We believe in the long-term prospects of China's travel and lodging industry and will maintain a suitable expansion pace furthering franchise-focused growth and multi-brand development in the next two to three years. The proven ability in navigating through a challenging environment and executing sound strategies are our core strength which will enable us to further our leadership scale in the industry and to deliver steady profitability enhancements and increasing cash generations for years to come."

Outlook for Full Year 2013

The Company continues to expect to open no less than 400 new hotels in 2013, including 65 to 70 leased-and-operated hotels.

The Company is also reiterating its expected revenue for the full year 2013. Total revenues for Home Inns Group are expected to be in the range of RMB 6,350 million to RMB 6,500 million, representing a growth of 10.1% to 12.7% over 2012. Total revenues expected for the full year of 2013 includes RMB 1,550 million to RMB 1,600 million from the Motel 168 brand.

These forecasts reflect the Company's current and preliminary view, which are subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.1200 to US$1.00, the noon buying rate for September 30, 2013 set forth in the H.10 statistical release of the Federal Reserve Board.


Tuesday, August 13, 2013

Comments & Business Outlook

Second Quarter 2013 Financial Results

  • Total revenues were in line with guidance and increased 10.5% to RMB 1.60 billion (US$261.0 million).
  • Net income attributable to ordinary shareholders increased 160.2% year over year to RMB 94.8 million(US$15.4 million). Adjusted net income attributable to ordinary shareholders (non-GAAP) increased 28.8% year over year to RMB 139.7 million (US$22.8 million).
  • Diluted Earnings per ADS was increased 33.3% to a $0.46 from last years $0.34.

"Navigating through a persistently challenging business environment, the Company maintained steady revenue performance and delivered another quarter of margin expansion year over year," said Mr. David Sun, the Company's chief executive officer. "In spite of tough market conditions, Motel 168 hotels continued their trend of performance improvements as a result of solid execution of our integration plans. Our cost control and productivity measures have proven effective in generating sustainable benefits to protect margin. Meanwhile, the gradual increase of revenues from franchise operations will provide a steady support for profitability enhancements going forward."

"While prospects for long range growth remain positive for the travel industry in China, we expect the market to remain stable but to lack catalysts for dramatic improvements in macroeconomic conditions in the near term. Accordingly, we are adjusting the new leased-and-operated hotels target to 65 to 70 from the previous 80 to 90 but raising our total new hotel openings for the year to 400. This modification in our strategy will enable us to meet the strong demand for franchise development, to manage the pace of leased-and-operated hotel openings and to improve the effectiveness of our capital deployment. Even though we are lowering the revenue expectations for the year slightly, the impact of lower revenue is reasonably expected to be absorbed by a meaningful increase in our profitability," Mr. Sun continued. "We have executed rapid growth for nearly a decade and we have now established solid foundations for maintaining our leadership scale in the industry, improving profitability and increasing value-creation for our shareholders in this next stage of growth."

Outlook for Full Year and Third Quarter 2013

Home Inns Group has revised its hotel development plan and now plans to open 400 new hotels in 2013, including 65 to70 leased-and-operated hotels and 330 to 335 franchised-and-managed hotels.

The Company lowers its total revenues expectation for the group for 2013 to be in the range of RMB 6,350 million to RMB 6,500 million, representing a growth of 10.1% to 12.7% over 2012. Total revenues expected for the full year of 2013 includes RMB 1,550 million to RMB 1,600 million from the Motel 168 brand.

Total revenues for Home Inns Group in the third quarter of 2013 are expected to be in the range of RMB 1,735 million to RMB 1,765 million, including RMB 425 million to RMB 435 million from the Motel 168 brand.

These forecasts reflect the Company's current and preliminary view, which are subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.1374 to US$1.00, the noon buying rate for June 30, 2013 set forth in the H.10 statistical release of the Federal Reserve Board.


Friday, June 28, 2013

Deal Flow

SHANGHAI, June 28, 2013 /PRNewswire/ -- Home Inns & Hotels Management Inc. (NASDAQ: HMIN) ("Home Inns Group" or "the Company"), a leading economy hotel chain in China, today announced that it completed the refinancing of its US dollar denominated term loan on June 28, 2013. The outstanding balance of the term loan, which was due inSeptember 2015, was $117 million.

The new US dollar denominated term loan facility of $117 million, due in June 2016, was sourced from the Industrial and Commercial Bank of China with an annual rate of 3-month LIBOR plus 295 basis points, inclusive of all financing fees and on-going interest charges.

Ms. Huiping Yan, Home Inns Group's chief financial officer, commented, "In a tightening credit environment in China, the Company achieved improved terms and gained greater financial flexibility by successfully executing this refinancing initiative. This clearly demonstrates the soundness of our underlying business as well as our commitment to optimizing our overall capital structure to support the long term development of Home Inns Group."


Tuesday, May 14, 2013

Comments & Business Outlook

First Quarter 2013 Financial Results

  • Total revenues increased 11.7% to RMB 1.402 billion (US$225.8 million) for the first quarter of 2013, which was within the guidance range of RMB 1.385 billion to RMB 1.415 billion.
  • Adjusted net income (non-GAAP) was RMB 10.3 million (US$1.7million) compared to a loss of RMB 24.6 million in the first quarter of 2012.
  • Adjusted EBITDA (non-GAAP) increased 30.3% to RMB 216.1 million (US$34.8 million) or 15.4% of total revenues compared to 13.2% in the first quarter of 2012
  • Diluted Loss per ADS ($0.42) vs a loss ($2.28)
  • Adj. Diluted Earnings/Loss per ADS* was $0.22 vs. ($0.54)

"Facing a continued weak market environment, the Company delivered reasonably sound performances in the first quarter of 2013," said Mr. David Sun, the Company's chief executive officer. "We achieved our revenue targets, maintained stable performance at mature hotels relative to the overall market, generated further integration results at Motel 168, and improved profitability across the business through solid execution of productivity initiatives and cost control measures."

"Market uncertainties remain as we look into the rest of 2013. On the other hand, it was evident that we are able to navigate through challenging environmental conditions and successfully manage internally controllable aspects of our business. The Company is evolving into a more efficient and effectively-managed enterprise to deliver growth with increasing profitability," Mr. Sun continued. "We will keep our focus on the franchise-growth strategy, multi-brand development and integration, capital structure optimization and cash generation. We strongly believe Home Inns Group will continue to leverage the opportunities in China's growing travel and lodging sector and deliver sustainable profitable growth to our shareholders over the long term."

Outlook for Second Quarter 2013

Home Inns Group maintains its target to open 360 to 380 new hotels in 2013, including approximately 80 to 90 leased-and-operated hotels and 270 to 300 franchised-and-managed hotels.

The Company also maintains its total revenues expectation for the group for 2013 to be in the range of RMB 6,600 million to RMB 6,800 million, representing growth of 14.4% to 17.9% over 2012.

Total revenues for Home Inns Group in the second quarter of 2013 are expected to be in the range of RMB 1,580 million to RMB 1,610 million.

Total revenues for Motel 168 brand in the second quarter of 2013 are expected to be in the range of RMB 380 million to RMB 390 million.

These forecasts reflect the Company's current and preliminary view, which are subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.2108 to US$1.00, the noon buying rate forMarch 31, 2013 set forth in the H.10 statistical release of the Federal Reserve Board.


Friday, August 10, 2012

Comments & Business Outlook

Financial Highlights

  • Total revenues increased 60.2% year over year to RMB 1.45 billion (US$228.2 million), in line with previously provided expectations for total revenues of RMB 1.43 billion to RMB 1.46 billion.
  • Income from operations was RMB 120.4 million (US$19.0 million). Adjusted income from operations (non-GAAP) was RMB 170.4 million (US$26.8 million), compared to RMB 158.8 million in the same period of 2011.
  • Net income attributable to Home Inns Group's shareholders was RMB 36.4 million (US$5.7 million), including a net loss of RMB 19.3 million (US$3.0 million) from Motel 168, compared to net income attributable to Home Inns Group's shareholders of RMB 122.1 million in the second quarter of 2011. Adjusted net income attributable to Home Inns Group's shareholders (non-GAAP) was RMB 108.5 million(US$17.1 million), including adjusted net income (non-GAAP) of RMB 8.2 million (US$1.3 million) from Motel 168, compared to adjusted net income attributable to Home Inns Group's shareholders (non-GAAP) of RMB 119.2 million in the same period of 2011.
  • EBITDA(non-GAAP) was RMB 284.8 million (US$44.8 million), compared to RMB 250.4 million in the same period of 2011. Adjusted EBITDA (non-GAAP) increased to RMB 331.6 million (US$52.2 million) from RMB 247.5 million in the second quarter of 2011.
  • Diluted earnings per ADS were RMB 0.75 (US$0.12); adjusted diluted earnings per ADS (non-GAAP) were RMB 2.17 (US$0.34).

"Despite the softened macroeconomic environment, we delivered solid year-over-year revenue growth during the second quarter, putting us in the higher end of previously stated revenue expectations," said Mr. David Sun, the Company's chief executive officer. "Our mature hotels excluding Motel 168 hotels maintained RevPAR year-over-year and delivered stable revenue performance, our three Yitel Hotels opened last year are ramping up according to expectations, and the Company continues to benefit from economies of scale. While Motel 168 hotels experienced stronger-than-expected headwinds due to their concentrated exposure to regions more adversely impacted by the macroeconomic environment, including areas surrounding the Yangtze River Delta, integration efforts continued to net positive improvement results."

"As we move into the second half of 2012, we will continue to further our multi-brand development and integration, keep cost increases in check and improve operating efficiencies across the Company. Motel 168 integration is expected to be more results-driven after the initial foundational efforts and resource investments. We believe that our franchise business growth will continue its strong momentum leveraging a well-run franchise business platform and increasing brand value and recognition. We are confident in the long-term prospects of China's travel and lodging industry and we have strategically positioned ourselves to capitalize on such opportunities and to achieve profitable growth in the future."

Outlook for the Full Year and Third Quarter of 2012

Taking into consideration of Motel 168's current performance trend in light of prevailing market conditions, the Company is revising its full year revenue guidance for Motel 168. Revenue guidance for the full year excluding Motel 168 remains unchanged.

Revenue guidance for the third quarter of 2012:

  • The Home Inns Group expects its total revenues in the third quarter of 2012 to be in the range of RMB 1,545 million (US$243.2 million) to RMB 1,575 million (US$248.0 million).
  • Total revenues for the Motel 168 brand in the third quarter of 2012 are expected to be in the range of RMB 390 million (US$61.4 million) to RMB 400 million (US$63.0 million).
  • Excluding Motel 168, total revenues in the third quarter of 2012 are expected to be in the range of RMB 1,155 million (US$181.8 million) to RMB 1,175 million (US$185.0 million).

This forecast reflects Home Inns Group's current and preliminary view, which is subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3530 to US$1.00, the noon buying rate for June 29, 2012 set forth in the H.10 statistical release of the Federal Reserve Board.


Monday, July 2, 2012

Acquisition Activity

SHANGHAI, July 2, 2012 /PRNewswire-Asia/ -- Home Inns & Hotels Management Inc. ("Home Inns Group", NASDAQ: HMIN), a leading economy hotel chain in China, today announced that it has completed an acquisition of 100% ownership of Anhui Youle Fashion Hotel Management Co., Ltd. and Anhui Meibang Hotel Management Co., Ltd. (collectively "eJia Express") for a total of RMB59.8 million (approximately US$9.4 million) in cash.

eJia Express is a regional economy hotel chain in Anhui Province with 13 leased-and-operated hotels and a total of 1,284 rooms, including nine hotels centrally located in the city of Hefei, the provincial capital. All of the 13 eJia Express hotels will be rebranded to Home Inns and this will significantly increase Home Inns' brand presence in the region. The average remaining lease term for the 13 hotels is approximately eight years. Prior to the eJia acquisition, Home Inns Group operated in Anhui Province with 18 hotels under the Home Inns brand and 14 hotels under the Motel 168 brand.

"We are very excited about the completion of the eJia Express acquisition, which allows us to add 13 strategic hotel locations at a highly attractive valuation in the economically vibrant Anhui Province," said Mr. David Sun, Home Inns' Chief Executive Officer. "We expect to quickly integrate these hotels into the Home Inns brand portfolio which includes more than 1,100 hotels in China. We are confident that this acquisition will be additive to our overall business and will help us continue to create long term value for our shareholders."

The per room acquisition cost including conversion cost is expected to be below the average cost of per organically developed Home Inns hotel room. The total cash consideration averages to a per room consideration of approximately RMB47,000, and Home Inns expects to invest less than RMB10,000 per room for the conversion and rebranding of these hotels into Home Inn hotels. This will occur gradually over the next six months with minimum operational interruption.


Friday, May 11, 2012

Comments & Business Outlook

First Quarter of 2012 Financial Highlights

  • Total revenues increased 66.0% year over year to RMB 1,255.7 million (US$199.4 million). Excluding Motel 168 (acquired and fully consolidated starting October 1, 2011) total revenue increased 22.7% year over year to RMB 928.4 million.
  • Loss from operations was RMB 36.9 million (US$5.9 million). Adjusted income from operations was RMB 9.7 million (US$1.5 million), compared to RMB 60.0 million in the same period of 2011.
  • Net loss attributable to Home Inns' shareholders was RMB 103.2 million (US$16.4 million) which includes a net loss of RMB 53.2 million (US$8.4 million) from Motel 168, compared to a net income of RMB 32.5 millionin the first quarter of 2011.
  • EBITDA (non-GAAP) was RMB 93.1 million (US$14.8 million), compared to RMB 137.5 million in the same period of 2011. Excluding non-operating items and one-time charges, adjusted EBITDA (non-GAAP) increased to RMB 165.9 million (US$26.3 million) from RMB 152.5 million in the first quarter of 2011.
  • Diluted losses per ADS for the first quarter of 2012 were RMB 2.28 (US$0.36); adjusted diluted losses per ADS (non-GAAP) for the first quarter were RMB 0.54 (US$0.09).

"Despite seasonality and relatively lethargic market environment, our core mature hotels maintained stable performance during the past quarter," said Mr. David Sun, Home Inns' Chief Executive Officer. "Due to margin impact by new hotels opened in the late fourth quarter of 2011, higher pre-opening costs, near-term profitability dilution by Motel 168 and non-recurring acquisition-related charges, we experienced an overall net loss in the first quarter. This was, however, within our expectations and there were no surprises."

"Based on what we are experiencing in current operations and the integration results we achieved so far, we remain optimistic about the full year's outlook. As new hotels ramp up, Motel 168 further improves its operations and our control mechanisms continue to address rising costs, we are confident of the Company's ability to generate profitable growth and sustained return for our shareholders."

Home Inns completed its acquisition of 100% equity interest in Motel 168, and took control of Motel 168 effective on October 1, 2011. The Company has consolidated Motel 168's operating and financial results since October 1, 2011. Home Inns presents certain separated financial data of Motel 168 in this earning release, for the purpose of providing more information to investors, and will continue to provide separated financial data of Motel 168 through the 2012 fiscal year.

Outlook for Second Quarter 2012

Home Inns expects total revenues for the group in the second quarter of 2012 to be in the range of RMB 1,430 million to (US$227.1 million) to RMB 1,460 million (US$231.8 million).

Total revenues for Motel 168 brand in the second quarter of 2012 are expected to be in the range of RMB 390 million (US$61.9 million) to RMB 400 million (US$63.5 million).

Excluding Motel 168, total revenues in the second quarter of 2012 are expected to be in the range of RMB 1,040 million (US$165.1 million) to RMB 1,060 million (US$168.3 million).

This forecast reflects Home Inns' current and preliminary view, which is subject to change. Our revenue and new hotel openings guidance for the full year 2012 remains unchanged.


Thursday, March 8, 2012

Comments & Business Outlook

Fourth Quarter 2011 Financial Highlights

  • Home Inns began to consolidate Motel 168 results starting October 1, 2011. Integration of Motel 168 is on track.
  • Total revenues increased 64.2% year over year to RMB 1,309.9 million (US$208.1 million).
  • Net income attributable to Home Inns' shareholders was RMB 32.7 million (US$5.2 million) which includes a net loss of RMB 17.5 million (US$2.8 million) from Motel 168, compared to RMB 33.0 million in 2010.
  • Income from operations was RMB 33.2 million (US$5.3 million). Adjusted income from operations was RMB 78.5 million (US$12.5 million), compared to RMB 116.1 million in the same period of 2010. The operating cost structure of the core business remained stable and profitability remained in line after taking into account the one-time benefit of Shanghai World Expo in 2010 and higher pre-opening expenses.
  • EBITDA (non-GAAP) increased to RMB 229.2 million (US$36.4 million) from RMB 132.2 million year over year. Excluding non-operating items and one-time charges, adjusted EBITDA (non-GAAP) was RMB 227.4 million (US$36.1 million), compared to RMB 201.3 million in 2010 which was boosted by 2010 Shanghai World Expo.
  • Diluted losses per ADS for the fourth quarter of 2011 were RMB 0.12 (US$0.02); adjusted diluted earnings per ADS (non-GAAP) for the current quarter were RMB 0.73 (US$0.12).

"In 2011, Home Inns accomplished several important milestones. Not only did we build a portfolio of over 1,000 hotels by 2011, a goal we set 5 years ago, we exceeded our target of new hotel openings for the year with 306 new hotels, we launched and expanded our mid-scale Yitel brand, we furthered our multi-brand strategy and acquired Motel 168," said Mr. David Sun, Home Inns' Chief Executive Officer. "Across a total of 1,426 hotels across 212 cities in China, we delivered solid operating performance with consistent year-over-year revenue growth and maintained strong profitability even when the macroeconomic environment softened in the latter part of the year."

Mr. Sun continued, "As we move into our tenth year of operation, we will continue to concentrate on growing a healthy portfolio and developing our multi-brand strategy. The integration of Motel 168 is on track, and we are already seeing operational improvements. We are confident that Motel 168 will contribute significantly to the long-term performance of the company. In 2012 we plan to open 330 to 360 new hotels spread across our three brands, while at the same time implementing initiatives to improve productivity and efficiency across our network of hotels. Overall, we are pleased with the evolution of the business and believe our clearly-defined growth strategy, proven execution and sound investments well position Home Inns to capture the growth opportunities in the Chinese travel industry in 2012 and beyond."

Outlook for First Quarter and Full Year 2012

Home Inns expects to open 330 to 360 new hotels in 2012, including approximately 105-125 leased-and-operated hotels (including three to five Motel 168 hotels) and 225-235 franchised-and-managed hotels (including 27 to 35 Motel 168 hotels).

Home Inns expects total revenues for the group for 2012 to be in the range of RMB 5,815 million (US$923.9 million) to RMB 5,910 million (US$939.0 million), representing a growth of 46.9% to 49.3% over 2011. Total revenues for the group in the first quarter of 2012 are expected to be in the range of RMB 1,210 million (US$192.2 million) to RMB 1,240 million (US$197.0 million).

Total revenues for Motel 168 brand for 2012 are expected to be in the range of RMB 1,575 million (US$250.2 million) to 1,600 million (US$254.2 million). Total revenues for Motel 168 brand in the first quarter of 2012 are expected to be in the range of RMB 320 million (US$50.8 million) to RMB 330 million (US$52.4 million).

Excluding Motel 168, total revenues for 2012 are expected to be in the range of RMB 4,240 million (US$673.7 million) to RMB 4,310 million (US$684.8 million). Excluding Motel 168, total revenues in the first quarter of 2012 are expected to be in the range of RMB 890 million (US$141.4 million) to RMB 910 million (144.6 million).

This forecast reflects Home Inns' current and preliminary view, which is subject to change


Friday, November 11, 2011

Comments & Business Outlook

Third Quarter 2011 Financial Highlights

  • Total revenue for the third quarter of 2011 was RMB 988.0 million (US$154.9 million) representing a 12.3% year-over-year increase, exceeding the guidance range of RMB 955 million to RMB 975 million, with most of the mature hotels outside of Shanghai achieved better than expected revenue performance through moderate price increases.
  • Net income attributable to Home Inns' shareholders for the third quarter of 2011 was RMB 164.3 million (US$25.8 million). Net income was reduced by share-based compensation expenses of RMB 20.1 million (US$3.1 million), foreign exchange loss of RMB 0.8 million (US$0.1 million), corporate spending related to the concluded acquisition of Motel 168 International Holdings Limited ("Motel 168") of RMB 41.4 million (US$6.5 million) and the withholding tax for distributable earnings from previous periods of RMB 26.7 million (US$4.2 million), and increased by gain from fair value change of convertible notes of RMB 121.2 million (US$19.0 million). This compared to a net income attributable to Home Inns' shareholders of RMB 144.6 million in the third quarter of 2010, which was reduced by share-based compensation expenses of RMB 14.2 million and foreign exchange loss of RMB 1.7 million. Given considerations for non-operational accounting charges and one-time items, overall profit margin is in line with normal historical performance level.
  • Diluted earnings per ADS for the third quarter of 2011 were RMB 0.61 (US$0.10); adjusted diluted earnings per ADS (non-GAAP) for the current quarter were RMB 2.86 (US$0.45) vs US$0.57

"We are pleased to report higher than expected revenue results for the third quarter, due primarily to better than expected performance and continued operational improvements from our mature hotels outside of Shanghai," said Mr. David Sun, Home Inns' Chief Executive Officer. "We opened our 1,000th Home Inn hotel during the third quarter which is a significant milestone in our growth history. The addition of Motel 168 and its more than 290 hotels solidifies our leadership position in the economy hotel industry in China, as well as further strengthens our diverse growth plans and multi-brand strategy. We are optimistic about the steady growth trend in the overall business and leisure travel in China despite uncertainties that may exist in the macroeconomic environment. With our operational know-how, discipline and agility in our investment and development plans, Home Inns is well-positioned to take advantage of the vast opportunities across Chinese market over the long term."

Outlook for the Fourth Quarter 2011

Home Inns expects its total revenues on a comparable basis in the fourth quarter of 2011 to be in the range of RMB 995 million (US$156.0 million) to RMB 1,015 million (US$159.1 million), representing a 25%-27% year-over-year increase without taking into account the revenue contribution by Motel 168.

Home Inns will consolidate Motel 168's financial results starting October 1, 2011. Home Inns expects the revenue contribution from Motel 168 to be in the range of RMB 355 million to RMB 375 million for the fourth quarter of 2011. The consolidated total revenues in the fourth quarter of 2011 are expected to be in the range of RMB 1,350 million (US$211.7 million) to RMB 1,390 million (US$217.9 million). This forecast reflects Home Inns' current and preliminary view, which is subject to change.


Friday, September 30, 2011

Acquisition Activity

SHANGHAI, September 30, 2011 /PRNewswire-Asia/ -- Home Inns & Hotels Management Inc. ("Home Inns", Nasdaq: HMIN), a leading economy hotel chain in China, announces that it has successfully completed its acquisition of 100% ownership interest of Motel 168 International Holdings Limited ("Motel 168") today according to a definitive share purchase agreement (the "Share Purchase Agreement") it entered into on May 27, 2011. In addition, Home Inns announces that by September 30, 2011 it has achieved a key growth milestone of opening over 1,000 hotels separate from the acquisition of Motel 168.

According to the Share Purchase Agreement, the acquisition price of US$470 million, subject to customary purchase price adjustments, consists of approximately US$305 million in cash, and approximately 8.15 million Home Inns' ordinary shares at a price equivalent to a per-ADS price of US$40.37 (each Nasdaq-traded Home Inns' ADS represents two ordinary shares). The shares are issued to two selling shareholders of Motel 168, GSS III Monroe Holdings Limited and Merrylin International Investment Limited, and are subject to a six-month lock-up period. The cash portion is funded with Home Inns' cash on hand, and a US$240 million, 4-year term loan facility provided by BNP Paribas, Chinatrust Commercial Bank, Ltd., Credit Agricole Corporate and Investment Bank, Credit Suisse AG Singapore Branch, J.P.Morgan, NATIXIS, and Shinhan Asia Limited, as Mandated Lead Arrangers, and Industrial and Commercial Bank of China (Asia) Limited as Lead Arranger. Home Inns is very pleased that this US dollar debut loan was well supported by a strong bank group, demonstrating their confidence in Home Inns despite recent volatile market conditions.


Tuesday, September 6, 2011

Acquisition Activity

SHANGHAI, Sept. 2, 2011 /PRNewswire-Asia/ -- Home Inns & Hotels Management Inc. ("Home Inns", Nasdaq: HMIN), a leading economy hotel chain in China, today announced that it has received anti-trust approval from the Ministry of Commerce of the People's Republic of China for its proposed acquisition of Motel 168 International Holdings Limited ("Motel 168"), one of the major branded economy hotel operators in China. With this development, Home Inns now expects to close the acquisition by the end of the third quarter of 2011, subject to all other closing conditions being satisfied.

Home Inns announced on May 27, 2011 that it had entered into a definitive agreement to acquire 100% ownership interest in Motel 168 for a total of US$470 million, consisting of approximately US$305 million in cash, and 8.15 million Home Inns' ordinary shares at a price equivalent to a per-ADS price of7  US$40.3(each Nasdaq-traded Home Inns' ADS represents two ordinary shares) to be issued at the time of closing. The cash portion will be funded with Home Inns' cash on hand, as well as a new US$250 million four-year senior secured term loan. Credit Suisse and J.P. Morgan acted as financial advisors to Home Inns and mandated lead arrangers for the new term loan.

"We experienced a smooth and timely anti-trust approval process for the Motel 168 acquisition, and now expect the transaction to close earlier than the originally estimated fourth quarter," said Mr. David Sun, Chief Executive Officer of Home Inns. "We are very excited about this development, and look forward to a prompt closing and the addition of the Motel 168 business to our Company in the near future."


Thursday, August 11, 2011

Comments & Business Outlook

Second Quarter 2011 Results

Total revenue for the second quarter was RMB 905.2 million (US$140.1 million) representing a 12.2% year-over-year increase.

Net income attributable to Home Inns' shareholders for the quarter was RMB 122.1 million (US$18.9 million). Net income was reduced by share-based compensation expenses of RMB 19.9 million (US$3.1 million), foreign exchange loss of RMB 0.3 million (US$0.05 million), one-time corporate spending of RMB 4.6 million (US$0.7 million), and increased by gain on buy-back of convertible bonds of RMB 1.5 million (US$0.2 million) and gain from fair value change of convertible notes of RMB 26.3 million (US$4.1 million). This compared to a net income attributable to Home Inns' shareholders of RMB 135.8 million in the second quarter of 2010, which was reduced by share-based compensation expenses of RMB 14.0 million, foreign exchange loss of RMB 0.5 million, and increased by gain on buy-back of convertible bonds of RMB 2.0 million.

Diluted earnings per ADS for the quarter were RMB 1.71 (US$0.26); adjusted diluted earnings per ADS (non-GAAP) for the quarter were RMB 2.48 (US$0.38).

"Starting in the second half of the year, we are implementing internal initiatives to further accelerate our development pace in bringing new hotels on-line so that our full year hotel unit growth will meet our target despite the recent changes in China's compliance environment. Soon we will surpass a key milestone of having 1,000 Home Inn hotels in operation in 2011. The expected closing of the Motel 168 acquisition with the addition of over 280 hotels will further Home Inns' leadership position in the industry." Mr. Sun continued, "With an established track record of solid planning and execution, Home Inns is well-positioned to continue positive business momentum and resume higher growth in 2012 and beyond to capture the long-term opportunities in China's hotel industry."

Outlook for the Third Quarter 2011 and Full Year 2011

Taking into consideration of the lengthened hotel business license application and granting process, and its impact on Home Inns hotel opening schedule before the benefits of internal initiatives to minimize its impact can be realized, Home Inns expects its total revenues in the third quarter of 2011 to be in the range of RMB 955 million (US$147.8 million) to RMB 975 million (US$150.8 million), representing a 9%-11% year-over-year increase.

Furthermore, Home Inns now expect its full year 2011 revenue to grow 15%-17%, a revision from its previously provided guidance of 18%-20% growth year over year. This forecast reflects Home Inns' current and preliminary view, which is subject to change. Given the overall stable operating environment and the Company's on-going efforts to realize efficiency and leverage improvements in development, construction and operations, Home Inns is confident that the impact of the compliance environment change will be temporary, and that the Company's business thesis and profitability profile remain intact.

Home Inns announced that it entered into a definitive agreement on May 27, 2011 to acquire 100% ownership interest in Motel 168, one of the major branded economy hotel operators in China. The transaction is expected to close, subject to customary closing conditions and Chinese regulatory approvals, in the fourth quarter of 2011.


Sunday, June 5, 2011

Liquidity Requirements

We expect to incur an additional RMB 167.3 million (US$25.3 million) in capital expenditures in connection with the completion of the leasehold improvements of these hotels. We intend to fund this planned expansion with our operating cash flow, our existing cash balance and bank credit facilities.

We have been able to meet our working capital needs, and we believe that we will be able to meet our working capital needs in the foreseeable future, with our operating cash flow, existing cash balance and bank credit facilities.


Friday, May 27, 2011

Acquisition Activity

SHANGHAI, May 27, 2011 /PRNewswire-Asia/ -- Home Inns & Hotels Management Inc. ("Home Inns", Nasdaq: HMIN) today announced that it has entered into a definitive agreement to acquire 100% ownership interest in Motel 168 International Holdings Limited ("Motel 168") for a total of US$470 million with approximately US$305 million in cash, and 8.15 million Home Inns' ordinary shares at a price equivalent to a per-ADS price of US$40.37 (each Nasdaq traded Home Inns' ADS represents two ordinary shares) to be issued at the time of closing (the "Transaction"). Home Inns will grant customary registration rights to the sellers in connection with the Home Inns ordinary shares issuance.

Motel 168 is one of the major branded economy hotel operators with 144 leased-and-operated locations and 137 franchised-and-managed hotels, with a total of 45,669 rooms in 81 cities across China as of today. The majority of Motel 168's portfolio is operated under the flagship Motel 168 brand, which is well-known among domestic business and leisure travelers, particularly in Shanghai and the eastern coastal regions. A selected number of locations are operated or co-operated under Motel 168's Motel 268 and Yotel QQ brands. Motel 168 generated gross revenue of $262 million in the financial year ending December 31, 2010.

The Transaction represents a unique strategic combination of the portfolios of Home Inns and Motel 168, and will create the most geographically diverse economy hotel operation in China. Consistent with Home Inns' strategy of developing multi-brands, Motel 168 will provide an attractive and complementary brand portfolio for Home Inns to increase its scale and expand its scope.

Home Inns plans to retain and operate the Motel 168 brand and leverage its proven operational expertise to enhance existing Motel 168 hotels' performance, as well as to further develop and expand the Motel 168 hotel portfolio. Home Inns does not expect this Transaction to cause any deviation from its existing business development and operational plans for the Home Inns or Yitel brands.

"We are excited to have the opportunity to bring Motel 168, a well-established domestic economy hotel chain, into Home Inns' portfolio, and look forward to working with the Motel 168 management team to ensure timely closing of the transaction, smooth post closing integration, and future growth of the business," said Mr. David Sun, Home Inns' Chief Executive Officer. "We are confident that through this Transaction, we will create long term value for our shareholders, who will include funds managed by Morgan Stanley Real Estate Investing (MSREI) and other previous shareholders of Motel 168."

"We believe in the attractiveness of the China economy hotel industry and Home Inns' long term leadership position," commented Mr. Hoke Slaughter, Managing Director and Head of Morgan Stanley's Real Estate Investment Business in Asia.


Friday, May 20, 2011

Deal Flow

NEW YORK, May 20, 2011 /PRNewswire-Asia/ -- Home Inns & Hotels Management Inc. (NASDAQ: HMIN) today announced that it has filed an automatic shelf registration statement on Form F-3 under the United States Securities Act of 1933, as amended, with the U.S. Securities and Exchange Commission. The registration statement registers resales by persons named therein of the Company's 2.00% convertible senior notes due 2015 and the Company's ordinary shares represented by American Depositary Shares (ADSs) issuable upon conversion of the notes.  The registration statement also registers resales of ordinary shares represented by ADSs by shareholders named in the registration statement. The registration statement became effective upon filing.


Tuesday, May 10, 2011

Comments & Business Outlook

First Quarter Results:

  • Total revenues for the first quarter increased 10.8% year over year to RMB 756.6 million (US$115.5 million).
  • Net income attributable to Home Inns' shareholders for the quarter was RMB 32.5 million (US$5.0 million).  Net income was reduced by share-based compensation expenses of RMB 17.0 million (US$2.6 million), foreign exchange loss of RMB 1.6 million (US$0.2 million), one-time corporate spending of RMB11.5 million (US$1.8 million) and, increased by gain from fair value change of convertible notes of RMB 15.1 million (US$2.3 million). This compared to a net income attributable to Home Inns' shareholders of RMB 46.1 million in the first quarter of 2010, which was reduced by share-based compensation expenses of RMB 9.4 million, foreign exchange loss of RMB 0.3 million and, increased by gain on buy-back of convertible bonds of RMB 0.5 million.
  • Income from operations for the quarter was RMB 31.5 million (US$4.8 million), compared to that of RMB 61.6 million in the same period of 2010.  Income from operations excluding share-based compensation expenses (non-GAAP) was RMB 48.5 million (US$7.4 million) for the quarter, compared to RMB 71.0 million in the same period of 2010.  The anticipated new hotels' dilutive impact, high pre-opening costs and one-time spending gave rise to unfavorable impact on overall income from operations.  
  • EBITDA (non-GAAP) for the quarter was RMB 137.5 million (US$21.0 million).  Excluding any share-based compensation expenses, foreign exchange loss, gain on buy-back of convertible bonds and gain from fair value change of convertible notes, adjusted EBITDA (non-GAAP) for the quarter was RMB 141.0 million (US$21.5 million), compared to RMB 154.9 million for the same period of 2010.
  • Diluted earnings per ADS for the quarter were RMB 0.11 (US$0.02); adjusted diluted earnings per ADS (non-GAAP) for the quarter were RMB 0.79 (US$0.12).

"Despite seasonality and dilutive impact of new hotels, we achieved our operational targets as business and leisure travel volume trended up and returning to normal after the Chinese New Year's holiday.  More importantly, our development pipeline strengthened significantly, positioning us well to deliver on our growth commitment for the year and the longer term." said Mr. David Sun, Home Inns' Chief Executive Officer.  

Home Inns expects its total revenues in the second quarter of 2011 to be in the range of RMB 905 million (US$138.2 million) to RMB 925 million (US$141.3 million), representing a 12-15% year-over-year increase. This forecast reflects Home Inns' current and preliminary view, which is subject to change.  Our revenue guidance for the full year 2011 remains unchanged.


Monday, March 7, 2011

Comments & Business Outlook

Fourth Quarter 2010 Financial Highlights

  • Total revenues for the fourth quarter increased 14.2% year over year to RMB 797.9 million (US$120.9 million), within the guidance range of RMB 795 million to RMB 815 million.
  • Net income attributable to Home Inns' shareholders for the quarter was RMB 33.0 million (US$5.0 million). Net income was reduced by share-based compensation expenses of RMB 15.7 million (US$2.4 million), foreign exchange loss of RMB 1.9 million (US$0.3 million), loss from fair value change of convertible bond of RMB 9.0 million (US$1.4 million) and one-time charge of issuance costs for convertible bond of RMB 42.6 million (US$6.4 million). This compared to a net income attributable to Home Inns' shareholders of RMB 68.4 million in the fourth quarter of 2009, which was reduced by share-based compensation expenses of RMB 9.8 million and gain on buy-back of convertible bond of RMB 2.1 million.
  • Income from operations for the quarter was RMB 100.4 million (US$15.2 million), compared to that of RMB 83.1 million in the same period of 2009. Income from operations excluding share-based compensation expenses (non-GAAP) increased 25% to RMB 116.1 million (US$17.6 million) for the quarter, compared to RMB 92.9 million in the same period of 2009.
  • EBITDA (non-GAAP) for the quarter was RMB 132.2 million (US$20.0 million). Excluding any share-based compensation expenses, foreign exchange loss, issuance costs for convertible bond and loss from fair value change of convertible bond, adjusted EBITDA (non-GAAP) for the quarter was RMB 201.3 million (US$30.5 million), compared to RMB 177.0 million for the same period of 2009, representing a year-over-year increase of 13.7%.
  • Diluted earnings per ADS for the quarter were RMB 0.78 (US$0.12); adjusted diluted earnings per ADS (non-GAAP) for the quarter were RMB 2.40 (US$0.36).

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.6000 to US$1.00, the effective noon buying rate as of December 31, 2010 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.

Diluted earnings per ADS and adjusted diluted earnings per ADS (non-GAAP) exclude gain on buy-back of convertible bond and interest expenses related to the convertible bond issued in December 2007. Adjusted diluted earnings per ADS (non-GAAP) also exclude foreign exchange loss, share-based compensation expenses, issuance costs for convertible bond and loss from fair value change of convertible bond. Please refer to "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

Full Year Financial 2010 Highlights

  • Total revenues for the year increased 21.8% year over year to RMB 3.17 billion (US$ 479.9 million), within the guidance range of 20-24% year-over-year growth.
  • Net income attributable to shareholders for the year was RMB 359.5 million (US$ 54.5 million). Net income was reduced by share-based compensation expenses of RMB 53.3 million (US$ 8.1 million), foreign exchange losses of RMB 4.4 million (US$ 0.7 million), issuance costs for convertible bond of RMB 42.6 million (US$6.4 million) and loss from fair value change of convertible bond of RMB 9.0 million (US$1.4 million), and increased by gain on buy-back of convertible bond of RMB 2.5 million (US$ 0.4 million). This compared to a net income attributable to shareholders of RMB 256.0 million in 2009, which was reduced by share based compensation expenses of RMB 32.0 million and foreign exchange losses of RMB 0.3 million and increased by gain on buy-back of convertible bond of RMB 69.3 million.
  • Income from operations for the year was RMB 530.4 million (US$ 80.4 million), compared to RMB 241.6 million in the previous year. Income from operations excluding share-based compensation expenses (non-GAAP) increased by 113.3% to RMB 583.7 million (US$ 88.4 million) in 2010 from RMB 273.6 million in the previous year.
  • EBITDA (non-GAAP) for the full year was RMB 812.0 million (US$ 123.0 million). Excluding any foreign exchange losses, share-based compensation expenses, gain on buy-back of convertible bond, issuance costs for convertible bond and loss from fair value change of convertible bond, adjusted EBITDA (non-GAAP) was RMB 918.8 million (US$ 139.2 million), compared to RMB 577.5 million for the same period a year ago, representing an increase of 59.1% year over year.
  • Diluted earnings per ADS were RMB 8.45 (US$ 1.28); adjusted diluted earnings per ADS (non-GAAP) were RMB 11.00 (US$ 1.67).

"2010 was another year of achievements for Home Inns. The 208 new hotels that we opened in 2010 further solidified our leadership position in the Chinese economy hotel industry. We concluded the year delivering on our commitments to both top line growth and margin expansion," said Mr. David Sun, Home Inns' Chief Executive Officer. "Our total portfolio's strong performance was achieved through effective pricing and cost management, taking advantage of continued Chinese economic growth and stability. During the year, we reaccelerated our development activities; we launched our mid-scale hotel brand Yitel and we raised our target for new hotels to be opened in 2011 to be between 260 and 280."

Outlook for First Quarter and Full Year 2011

  • Home Inns expects to open 260 to 280 new hotels in 2011, including approximately 100-110 leased-and-operated hotels and 160-170 franchised-and-managed hotels.
  • Home Inns expects total revenues for 2011 to grow 18% to 20% over 2010.
  • Total revenues in the first quarter of 2011 are expected to be in the range of RMB 755 million (US$114.4 million) to RMB 775 million (US$117.4 million). This forecast reflects Home Inns' current and preliminary view, which is subject to change.

Friday, January 7, 2011

Comments & Business Outlook

SHANGHAI, Jan. 7, 2011 /PRNewswire-Asia/ -- Home Inns & Hotels Management Inc. today announced plans to open a total of 260 to 280 new hotels in 2011, of which 100 to 110 will be leased-and-operated hotels and 160 to 170 will be franchised-and-managed hotels.  In addition, as previously announced, Home Inns has set plans to enter into the midscale hotel segment in China with 3 to 4 new hotels in 2011 under a second brand, Yitel.


Thursday, November 11, 2010

Comments & Business Outlook

Third Quarter 2010Financial Highlights

  • Total revenues for the third quarter increased 20.9% year over year to RMB 879.5 million (US$131.5 million), within the guidance range of RMB 875 million to RMB 895 million.
  • Net income attributable to Home Inns' shareholders for the quarter was RMB 144.6 million (US$21.6 million), including share-based compensation expenses of RMB 14.2 million (US$2.1 million) and foreign exchange loss of RMB 1.7 million (US$0.3 million).  This compared to a net income attributable to Home Inns' shareholders of RMB 86.7 million in the third quarter of 2009, which included share-based compensation expenses of RMB 7.8 million and gain on buy-back of convertible bonds of RMB 4.3 million.
  • Diluted earnings per ADS for the quarter were RMB 3.42 (US$0.51), while adjusted diluted earnings per ADS (non-GAAP) for the quarter were RMB 3.79 (US$0.57).

"Continuing with the second quarter momentum, we delivered another strong quarter.  The overall economic growth and market conditions in China remain stable.  This enabled performance enhancements in all Home Inns hotels.  Our system-wide RevPAR increased both year over year and sequentially," said Mr. David Sun, Home Inns' Chief Executive Officer.

 "Throughout the quarter, Shanghai World Expo provided event-driven premium to our hotels in Shanghai.  We are particularly excited to see the average daily rates for hotels outside of Shanghai also increased both year over year and sequentially.  This came as a result of our sound strategy in developing presence across China including lower tier markets with tremendous growth potential."

Outlook for Fourth Quarter of 2010

Home Inns expects its total revenues in the fourth quarter of 2010 to be in the range of RMB 795 million (US$118.8 million) to RMB 815 million (US$121.8 million), representing a 14-17% year-over-year increase.  

Our full year guidance of 20-24% revenue growth remains unchanged.  This forecast reflects Home Inns' current and preliminary view, which is subject to change.


Thursday, August 6, 2009

Comments & Business Outlook

'Home Inns has started to realize the benefits of the strategic decisions we made in response to the financial downturn, which has affected our business since the fourth quarter of 2008. Our prudent development plans and the maturity of the hotels we opened last year, together with higher than expected revenues due to the easing of the economic situation towards the end of the quarter, resulted in our improved overall operational performance and profitability,' remarked Mr. David Sun, Home Inns' Chief Executive Officer.

'We believe our business has entered into a phase of stability and gradual recovery. We are well-positioned to execute on our strategy and we are committed to achieving a balance between growth and profitability. During the second quarter, this balance allowed us to open 25 new hotels and enter six new markets, while still demonstrating improved operational metrics and financial performance,' continued Mr. Sun.

3rd Quarter 2009 Guidance Ending September a

  3rd Quarter 2009 Guidance 3rd Quarter 2008 Reported Period Change
GAAP Revenue $ 100.3 to  $103.2 million $ 77.7 million 29.1% to 25.5%

Source: See Release, August 5, 2009



 
FULL YEAR 2009 Guidance Ending December a


  Full Year 2009 Guidance Full Year 2008 Reported Period Change
GAAP Revenue $206.2 million $274.3 million 33.0% to 35.0%

Source: See Release, August 5, 2009

a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.



Monday, June 29, 2009

Comments & Business Outlook

'Although we were not immune to the economic downturn, our business is relatively resilient as evidenced by the somewhat modest reduction in our operational metrics, which was within our expectations. As we entered into the seasonally stronger second quarter, we believe the impact from the slower economy will become more manageable,' continued Mr. Sun. 'Although our planned expansion into lower tier cities will continue to put pressure on our RevPAR, especially at an economically challenging time, we see this as a necessary strategy for our long term growth, and believe that as these cities continue to experience economic and population growth, Home Inns will be ideally positioned to benefit as the established leader in economy hotels in China.

2nd Quarter 2009 Guidance Ending June a

  2nd Quarter 2009 Guidance 2nd Quarter 2008 Reported Period Change
GAAP Revenue $89.3 to $92.2 million $65.3 million 36.8% to 41.2

Source: See Release, May 7, 2009 

a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.




Saturday, May 9, 2009

Research

"Although we were not immune to the economic downturn, our business is relatively resilient as evidenced by the somewhat modest reduction in our operational metrics, which was within our expectations. As we entered into the seasonally stronger second quarter, we believe the impact from the slower economy will become more manageable,' continued Mr. Sun. 'Although our planned expansion into lower tier cities will continue to put pressure on our RevPAR, especially at an economically challenging time, we see this as a necessary strategy for our long term growth, and believe that as these cities continue to experience economic and population growth, Home Inns will be ideally positioned to benefit as the established leader in economy hotels in China."

Source: PR Newswire (May 7, 2009)


Thursday, March 5, 2009

Research

 "2008 was a challenging year for us. Although we achieved our revenue and expansion targets, our operational metrics and bottom-line results were negatively impacted by a number of factors, including the recent economic slowdown," remarked Mr. David Sun, Home Inns' Chief Executive Officer. "Although there are still great uncertainties regarding the economic conditions and the demand for travel in China for 2009, we are now the clear leader in the economy hotels industry in China as evidenced by our large number of hotels, broad geographic coverage, and an ever-expanding Home Inns member network. We believe that our product continues to be affordable and appealing to business travelers under the current economic conditions. We will be prudent in our expansion strategy and financial planning at this time, but there is no change in our view on the large growth potential of China's economy hotel industry in the long term."

"We are taking a cautious stance at this time with regards to our near term development plan," concluded Mr. David Sun. "Given our ability to adjust our development plan with a lead time of only four to six months, we have the flexibility to adapt to changes in economic conditions if necessary. We remain keen on maintaining our leadership position in the industry."

Source: PR Newswire (March 5, 2009)


Friday, February 6, 2009

Comments & Business Outlook

Guidance Report:

"The recent global economic situation has led to reduced business travel activities in China, and as a result, the Company experienced contraction in both chain-wide and like-for-like RevPAR (revenue per available room) during the fourth quarter of 2008.

Due to such challenges, the Company believes that its revenue for the fourth quarter of 2008 will be at the low end of its previously announced forecasted range of RMB 535 - 555 million. ($78 - $81 million) "

Source: PR Newswire (January 9, 2009)