[photopress:home_inn_xiamen.jpg,full,alignright]Home Inn Hotels is considering an $80m US listing/Home Inns & Hotel Management. This is one of China’s biggest homegrown budget hotel chains. The money said it plans to raise the money to help finance an expansion plan.
In a statement filed on October 4 to the U.S. Securities and Exchange Commission the firm said it plans to sell American Depositary Shares to the public ‘as soon as practicable’ via a holding company listed in the Cayman Islands.
Home Inn, which counts Ctrip.com (CTRP.O: Quote, Profile, Research), China’s biggest online travel agent, among its earliest investors, said it aims to use about $45 million of the money raised to fund an expansion of its hotel chain and to improve existing hotel properties.
Home Inn, which operates 82 hotels in 26 Chinese cities, said its net income was RMB27.2 million ($3.4 million) on RMB249.1 million($31.5 million) in revenues for the first half of 2006. The company has another 57 hotels under development in 40 cities and has identified over 100 focus cities.
Rival budget hotel operator Jinjiang International is awaiting regulatory approval for a Hong Kong listing worth up to US$300 million, which it hopes to launch this year, sources familiar with the deal said last month.
Jinjiang operates 80 hotels in 42 cities and plans to increase that to 140 by the end of the year, and over 200 by 2008.