|Home Inns acquires eJia Express.|
Wednesday, 18th July 2012
Source : HVS International
Shanghai-based Home Inns and Hotels Management recently announced the completion of the acquisition of two hotel chain operators in Anhui Province for approximately US$9.4 million.
The acquisition is part of the company’s strategy to strengthen the presence of the brand in the emerging economy of Anhui Province.
The local hotel chain operators – Anhui Youle Fashion Hotel Management and Anhui Meibang Hotel Management – are collectively referred to as ‘eJia Express’. The eJia Express portfolio consists of 13 leased-and-operated hotels that comprise 1,284 rooms.
The portfolio includes nine hotels located at the heart of Hefei, the capital of Anhui Province. The average remaining lease term for all the hotels is approximately eight years. Post-acquisition, all the hotels of eJia Express will be rebranded and will operate under the Home Inns brand.
The company projects investments of about US$1,578 per room for rebranding and redevelopment, which are expected to be completed by the next six months.