HMIN Home Inns Update

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There are lots of praises for Home Inns (Rujia, most in Chinese). I saw this one in English. Actually from my own experience at four Home Inns in Shanghai I have both praises and complaints. So every coin has two sides.

On serious side, I noticed after Home Inns developed the new hotels in Nanjing and Qingdao this year, they are developing very fast in Xi’an and Anhui. This is all good. But I still have couple questions for them: as they add more hotels, how many are company owned (how many are franchised)? From my understanding they make a lot more money from company owned hotels. Also, how about pricing power? (do they need to discount to get people to stay?)

Note the stock hit all time high yesterday ($41.85).