Home Inn is the latest in China IPO
Hotel chain Home Inns & Hotels Management Inc. became the latest in a series of Chinese initial public offerings to attract strong U.S. investor interest., The Wall Street Journal reported.
The Shanghai-based company sold 7.9 million American depository receipts at its expected 10-to-12 US dollars range, which was set by underwriters Credit Suisse Group and Merrill Lynch & Co, said the paper.
Home Inns' 82 hotels cater to budget-conscious travelers, a growing segment of the hospitality sector as more small-business owners and residents travel within China. Hotels account for only about 5 percent of lodging options in China, with guesthouses and privately owned properties dominating, according to Euromonitor International.
Four-year-old Home Inns has 57 hotel properties under development, and plans to use proceeds from its IPO for capital expenses and to repay debt. In the first half, its total revenue more than doubled to 31.2 million US dollars, and its net income tripled to 3.4 million US dollars.