Home Inns Enters into a Definitive Agreement to Acquire Motel 168

Home Inns & Hotels Management 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.