Home Inns Group acquires eJia Express of China
10 July 2012
Home Inns & Hotel Management has announced the takeover of Anhui Youle Fashion Hotel Management and Anhui Meibang Hotel Management, known as eJia Express, for RMB59.8m ($9.4 million).
With a total of 1,284 rooms, including nine hotels in the city of Hefei, the eJia Express group comprises 13 leased and operated hotels.
Following the deal, all of the eJia Express hotels, which have an average remaining lease term eight years, will be rebranded to Home Inns in the next six months, increasing the company's brand presence in the Anhui province.
Before acquiring the regional economy hotel chain eJia, the Chinese hotel chain operated 18 hotels under the Home Inns brand and 14 hotels under the Motel 168 brand in the region.
Home Inns chief executive officer David Sun said that the acquisition of eJia Express is expected to allow the company to add 13 hotel locations in the Anhui province.
The acquisition cost for each room, including conversion cost, is expected to be below the average price for each organically developed hotel room of Home Inns.