China’s biggest budget hotel chain, Home Inns & Hotels Management, has agreed to acquire its rival, Yunshang Siji Hotels.
Shanghai-based Home Inns, which operates approximately 1,800 economy hotels across mainland China, will take a 100% stake in Yunshang Siji from Kunming Department Store Co Ltd, for a price of CNY230 million (U$37.5m). The transaction is expected to close on 1 April 2014.
“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 David Sun, Home Inns’ CEO.
“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,” he added.
Yunshang Siji currently operates a portfolio of 35 hotels, totalling 3,500 rooms, mainly in Yunnan province. At the end of 2013, Home Inns had a collection of 1,772 budget hotels with more than 176,500 rooms. But the company is expanding rapidly, with approximately 100 extra hotels being added to its portfolio every quarter in 2013.
Comments are closed.