Home Inns Group announces closing of Yunshang Siji Hotel management company acquisition

SHANGHAI – Home Inns & Hotels Management Inc., 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.