China's budget hotels contribute just 1% to the overall revenue of the hospitality market and the percentage will surge to 50% 30 years from now, said Hanting Inns & Hotels CEO Ji Qi. "Within 30 years, [China's] budget hotel market will be dominated by five big companies plus some other 10,000 smaller ones," argued Ji. "The competition is more between budget hotels and starred hotels than between budget hotels themselves."
Hanting Inns & Hotels filed an application for a NASDAQ listing aimed at raising $50 million in March. It profited ¥230 million ($1 = ¥6.8) in 2009 and will be China's third US-listed economy hotel chain after Home Inns & Hotels Management Inc (NASDAQ: HMIN) and 7 Days Group Holdings Ltd (NYSE: SVN). Hanting was running 210 hotels by May 2009; 7 Days had 337 outlets as of December 31 2009, second just to Home Inns & Hotels. Hanting founder Ji Qi also co-founded Home Inns and Ctrip.com (NASDAQ: CTRP), China's largest online travel service provider.