Home Inns Group Reports Third Quarter 2012 Financial Results

         Home Inns Group Reports Third Quarter 2012 Financial Results

Revenues Increased 62% Year over Year to RMB 1.60 billion

Motel 168 Hotels Occupancy Rate Improved to 83%

PR Newswire

SHANGHAI, Nov. 13, 2012

SHANGHAI, Nov. 13, 2012 /PRNewswire/ -- Home Inns & Hotels Management Inc.
(NASDAQ: HMIN) ("Home Inns Group" or "the Company"), a leading economy hotel
chain in China,  today announced its unaudited financial results for the third
quarter ended September 30, 2012.

Home Inns Group acquired Motel 168 and has consolidated Motel 168's operating
and financial results since October 1, 2011. Consolidated group numbers are
presented in this earnings release unless specifically mentioned. For the
purpose of providing more context and comprehensive information to investors,
Home Inns Group separately presents key financial data excluding Motel 168 in
this earnings release in Appendix 1.

Key Highlights for Third Quarter 2012

Financial Highlights

  oTotal revenues increased 61.8% year over year to RMB 1.60 billion
    (US$254.3 million), exceeding guidance range of RMB 1.55 billion to RMB
    1.58 billion.
  oIncome from operations was RMB 154.0 million (US$24.5 million). Adjusted
    income from operations (non-GAAP) increased to RMB 204.7 million (US$32.6
    million) from RMB 160.0 million in the same period of 2011.
  oNet income attributable to Home Inns Group's shareholders was RMB 33.7
    million (US$5.4 million), compared to RMB 164.3 million in the third
    quarter of 2011. Adjusted net income attributable to Home Inns Group's
    shareholders (non-GAAP) was RMB 135.8 million (US$21.6 million), compared
    to adjusted net income (non-GAAP) of RMB 132.0 million in the same period
    of 2011.
  oEBITDA(non-GAAP) was RMB 283.5 million (US$45.1 million), compared to RMB
    331.8 million in the same period of 2011. Adjusted EBITDA (non-GAAP)
    increased to RMB 375.5 million (US$59.8 million) from RMB 272.9 million in
    the third quarter of 2011.
  oDiluted earnings per ADS were RMB 0.73 (US$0.12); adjusted diluted
    earnings per ADS (non-GAAP) were RMB 2.93 (US$0.47).

Operational Highlights

  oDuring the third quarter of 2012, Home Inns Group opened 108 new hotels,
    including 39 new leased-and-operated hotels (including two Yitel hotels
    and two Motel 168 hotels) and 69 new franchised-and-managed hotels
    (including four Motel 168 hotels). Two leased-and-operated hotels and four
    franchised-and-managed hotels (including one Motel 168 hotel) were closed
    due to city rezoning, or expiration or termination of the contracts.
  oAs of September 30, 2012, Home Inns Group operated across 243 cities in
    China with a total of 1,682 hotels, of which 770 were leased-and-operated
    hotels (including five Yitel hotels and 146 Motel 168 hotels) and 912 were
    franchised-and-managed hotels (including one Yitel hotel and 175 Motel 168
    hotels). The average number of guest rooms per hotel was 122, as of
    September 30, 2012.
  oHome Inns Group had another 252 hotels contracted or under construction as
    of September 30, 2012, of which 87 were leased-and-operated hotels
    (including one hotel under the Yitel brand and nine hotels under the Motel
    168 brand) and 165 were franchised-and-managed hotels (including one hotel
    under the Yitel brand and 20 hotels under the Motel 168 brand).
  oAs of September 30, 2012, Home Inns Group had a total of 10.6 million
    unique active non-corporate members under its frequent guests programs.
  oThe occupancy rate for all hotels in operation was 90.3% in the third
    quarter of 2012, compared to an occupancy rate of 94.1% in the third
    quarter of 2011 and 89.2% in the second quarter of 2012. The decrease in
    occupancy rate year over year was mainly due to overall market softness
    and the lower occupancy rate of the Motel 168 brand, which is still being
    integrated. The sequential increase in occupancy rate was mainly
    attributable to seasonality. The occupancy rate for Motel 168 in the third
    quarter of 2012 was 82.7%, increased from 80.8% in the second quarter of
    2012.
  oRevPAR, which is revenue per available room, was RMB 157 for the third
    quarter of 2012, compared with RMB 169 in the same period of 2011 and RMB
    149 in the second quarter of 2012. The year-over-year RevPAR decrease was
    mainly due to weaker market conditions and lower RevPAR from Motel 168 as
    it continued to improve its operating performances. The sequential
    increase in RevPAR was primarily attributable to seasonality and
    opportunistic pricing in selected markets. RevPAR for Motel 168 in the
    third quarter of 2012 was RMB 134, an increase from RMB 129 in the second
    quarter of 2012. Integration of Motel 168 remained on track.

"We are very pleased to report higher than expected revenue and solid overall
operating results for the third quarter," said Mr. David Sun, the Company's
chief executive officer. "Even though the overall macroeconomic market
conditions remained soft, we effectively maintained stable performance in our
core business and kept the integration of Motel 168 well on track for
continued operational improvements.Further, our new hotels have been ramping
up according to expectations and our productivity measures are generating
positive impact to protect margins despite limited price opportunities and
rising costs.

"There remains a level of uncertainty in the marketplace and we may not see
significant improvements for another six to nine months. However, we believe
China's travel and lodging industry will continue to provide growth and broad
opportunity for the strongest players. We will continue to further the
integration of Motel 168, leverage the strong growth momentum of our high
margin franchise business, fully establish a strong foundation for the Yitel
brand, and keep a vigilant control over our cost structure. We are confident
of achieving profitable growth and driving long-term value for our
shareholders."

Detailed Overview of Financial Results for Third Quarter 2012

Total Revenues for the third quarter of 2012 increased 61.8% year over year to
RMB 1.60 billion (US$254.3 million), including revenues from Motel 168 of RMB
398.9 million (US$63.5 million). Motel 168 achieved the higher end of its
revenue guidance for the third quarter.

  oTotal revenues from leased-and-operated hotels for the third quarter of
    2012 were RMB 1.43 billion (US$227.8 million), representing a 62.3%
    increase year over year and a 10.1% increase sequentially.
  oTotal revenues from franchised-and-managed hotels for the third quarter of
    2012 were RMB 166.6 million (US$26.5 million), representing a 57.2%
    increase year over year and an 11.3% increase sequentially.

Total Operating Costs and Expenses for the third quarter of 2012 were RMB 1.36
billion (US$215.6 million). Excluding any share-based compensation expenses
and acquisition and integration cost, total operating costs and expenses
(non-GAAP) for the quarter were RMB 1.30 billion (US$207.6 million),
representing 81.6% of total revenues, compared with 77.6% for the same quarter
a year ago and 82.4% for the second quarter of 2012.

  oTotal leased-and-operated hotel costs for the third quarter of 2012 were
    RMB 1.21 billion (US$193.2 million), including share-based compensation
    expenses of RMB 2.0 million (US$0.3 million) and integration costs of RMB
    25.4 million (US$4.0 million). Total leased-and-operated hotel costs
    excluding share-based compensation expenses and integration costs
    (non-GAAP) for the third quarter of 2012 were RMB 1.19 billion (US$188.8
    million), representing 82.9% of the leased-and-operated hotel revenues,
    compared to 76.3% of leased-and-operated hotel revenues in the same period
    of 2011 and 84.3% in the second quarter of 2012. This year-over-year
    increase in this expense ratio was mainly driven by overall soft market
    conditions not suitable for systematic price increases, higher cost ratio
    from Motel 168 hotels which are still being integrated, and certain
    nonrecurring charges to other operating costs and expenses. The sequential
    decrease in this ratio was mainly driven by seasonality. The pre-opening
    cost was RMB 28.8 million (US$4.6 million) in the third quarter of 2012
    compared to RMB 31.2 million in the third quarter of 2011.
  oPersonnel costs of franchised-and-managed hotels for the third quarter of
    2012 were RMB 45.0 million (US$7.2 million), including share-based
    compensation expenses of RMB 2.4 million (US$0.4 million). Excluding
    share-based compensation expenses, personnel costs of
    franchised-and-managed hotels (non-GAAP) for the third quarter of 2012
    were RMB 42.6 million (US$6.8 million), representing 25.6% of
    franchised-and-managed hotel revenues. This compared to 22.4% for the same
    quarter in 2011 and 20.2% for the second quarter of 2012. The
    year-over-year increase in this ratio was mainly due to relatively lower
    revenue performance by franchised-and-managed hotels at Motel 168. The
    sequential increase in this ratio was mainly due to a higher bonus accrual
    of performance-based bonus in the third quarter.
  oSales and marketing expenses for the third quarter of 2012 were RMB 18.4
    million (US$2.9 million), including share-based compensation expenses of
    RMB 0.4 million (US$0.1 million). Excluding share-based compensation
    expenses, sales and marketing expenses (non-GAAP) for the third quarter of
    2012 were RMB 17.9 million (US$2.9 million), representing 1.1% of total
    revenues, compared to 1.6% of total revenues in the same period a year ago
    and 1.0% of total revenues in the second quarter of 2012. The
    year-over-year decrease in this ratio was mainly the result of tightly
    controlled sales and marketing spending supporting a larger revenue base.
  oGeneral and administrative expenses for the third quarter of 2012 were RMB
    77.9 million (US$12.4 million), including share-based compensation
    expenses of RMB 19.2 million (US$3.1 million) and integration costs of RMB
    1.2 million (US$0.2 million). General and administrative expenses
    excluding share-based compensation expenses and acquisition and
    integration cost(non-GAAP) were RMB 57.4 million (US$9.1 million), or 3.6%
    of the total revenues, compared with 5.5% of the total revenues in the
    same period of 2011 and 3.7% in the second quarter of 2012. The Company
    continues to benefit from economies of scale.

Income from Operations for the third quarter of 2012 was RMB 154.0 million
(US$24.5 million). Income from operations excluding share-based compensation
expenses and integration cost (non-GAAP) for the third quarter of 2012 was RMB
204.7 million (US$32.6 million), or 12.8% of total revenues, compared to RMB
160.0 million, or 16.2% of total revenues, in the same period of 2011 and RMB
170.4 million, or 11.8% of total revenues, in the second quarter of 2012. The
year-over-year decrease in the ratio of income from operations excluding
share-based compensation expenses and acquisition and integration cost
(non-GAAP) over total revenues was mainly caused by the higher cost ratio at
Motel 168, absence of systematic selling price increases and one-time charges.
The sequential increase in this ratio was mainly due to seasonality.

EBITDA (non-GAAP) for the third quarter of 2012 was RMB 283.5 million (US$45.1
million). Excluding any share-based compensation expenses, foreign exchange
gain or loss, acquisition and integration cost, loss from fair value change of
convertible notes and interest rate swap contracts non-operating expenses,
adjusted EBITDA (non-GAAP) was RMB 375.5 million (US$59.8 million), or 23.5%
of total revenues, compared to RMB 272.9 million, or 27.6% of total revenues,
in the same period in 2011 and RMB 331.6 million, or 22.9% of total revenues,
in the second quarter of 2012.

Consolidated Net Income Attributable to Home Inns Group's Shareholders for the
third quarter of 2012 was RMB 33.7 million (US$5.4 million). Adjusted net
income attributable to Home Inns Group's shareholders (non-GAAP), which
excludes any share-based compensation expenses, foreign exchange gain or loss,
acquisition and integration cost, upfront fee amortization of term loan, gain
or loss from fair value change of convertible notes and interest rate swap
contracts, withholding tax for profit distribution of previous periods and
other non-operating expenses, was RMB 135.8 million (US$21.6 million) for the
third quarter of 2012, compared to adjusted net income (non-GAAP) of RMB 132.0
million in the same period of 2011 and adjusted net income (non-GAAP) of RMB
108.5 million in the second quarter of 2012.

Basic and Diluted Earnings Per Ordinary Share and Per ADS for the third
quarter of 2012: Basic earnings per share was RMB 0.37 (US$0.06), while
diluted earnings per share was also RMB 0.37 (US$0.06). Basic earnings per ADS
was RMB 0.74 (US$0.12), while diluted earnings per ADS was RMB 0.73 (US$0.12).
Excluding any share-based compensation expenses, foreign exchange gain or
loss, acquisition and integration cost, upfront fee amortization of term loan,
gain or loss from fair value change of convertible notes and interest rate
swap contracts, withholding tax for profit distribution of previous periods
and other non-operating expenses, adjusted basic earnings per share (non-GAAP)
was RMB 1.50 (US$0.24), while adjusted diluted earnings per share (non-GAAP)
was RMB 1.47 (US$0.23). Adjusted basic earnings per ADS (non-GAAP) was RMB
2.99 (US$0.48), while adjusted diluted earnings per ADS (non-GAAP) was RMB
2.93 (US$0.47).

Cash Flow

Net operating cash flow for the third quarter of 2012 was RMB 239.9 million
(US$38.2 million), compared to RMB 276.9 million from the third quarter of
2011. Capitalized expenditures for the third quarter of 2012 were RMB 357.4
million (US$56.9 million), while related cash paid for capital expenditures
during the quarter was RMB 225.3 million (US$35.8 million).

Balance Sheet

As of September 30, 2012, the Company had cash and cash equivalents of RMB
752.5 million (US$119.7 million). The outstanding balance of convertible bonds
(issued in 2007) was RMB 113.5 million (US$18.1 million) including principal
and accrued interest. Financial liabilities of RMB 1.03 billion (US$164.1
million) consisted of the outstanding balance of long-term financial liability
for convertible notes (issued in December 2010) and interest swap contracts
(both measured at fair value). The balance of the Company's U.S.
dollar-denominated four-year term loan facility decreased to RMB 786.3 million
(US$125.1 million), as the Company paid down US$21 million during the third
quarter of 2012.

Outlook for the  Full Year 2012

Home Inns Group is reiterating its expected revenue for the full year 2012.

Total revenues for Home Inns Group for the year are expected to be in the
range of RMB 5,715 million (US$909.3 million) to RMB 5,810 million (US$924.5
million).

Total revenues for the Motel 168 brand for the full year are expected to be in
the range of RMB 1,475 million (US$234.7 million) to RMB 1,500 million
(US$238.7 million).

Total revenues excluding Motel 168 brand for the full year of 2012 are
expected to be in the range of RMB 4,240 million (US$674.6 million) to RMB
4,310 million (US$685.8 million).

Driven by strong franchised-and-managed hotel development, the Company expects
to open no less than 360 new hotels in 2012 exceeding its guidance range of
330-360 hotel openings for the full year.

These forecasts reflect Home Inns Group's current and preliminary view, which
is subject to change.

This announcement contains translations of certain RMB amounts into U.S.
dollars solely for the convenience of the reader. Unless otherwise noted, all
translations from RMB to U.S. dollars are made at a rate of RMB6.2848 to
US$1.00, the noon buying rate for September 28, 2012 set forth in the H.10
statistical release of the Federal Reserve Board.

Conference Call Information

Management will hold an earnings conference call at 8:00 PM U.S. Eastern
Standard Time on November 13, 2012 (9:00 AM Beijing/Hong Kong Time on November
14, 2012).

Dial-in details for the earnings conference call are as follows:

China Mainland:            800.819.0121 or 400.620.8038
Hong Kong (toll free):     800.930.346
Hong Kong:                  852.2475.0994
U.S. (toll free):          1.866.519.4004
U.S.:                      1.718.354.1231
U.K. (toll free):          080.8234.6646
U.K.:                      44.2030.598.139
Australia (toll free):      1.800.457.076
Taiwan (toll free):        008.0112.6920
International:             65.6723.9381
Pass code for all regions: Home Inns

A replay of the conference call may be accessed by phone at the following
numbers until the end of November 21, 2012 U.S. Eastern Standard Time.

U.S. toll free:      1.866.214.5335
China toll free:     10.800.714.0386
Hong Kong toll free: 800.901.596
International:        61.2.8235.5000
Conference ID number: 35531194

Live and archived webcasts of this conference call will be available at
http://english.homeinns.com.

About Home Inns Group

Home Inns Group is a leading economy hotel chain in China based on the number
of hotels and hotel rooms, as well as the geographic coverage of the hotel
chain. Since the Company commenced operations in 2002, it has built Home Inn
as one of the best-known economy hotel brands in China. In October of 2011,
Home Inns Group acquired Motel 168, another well-known hotel chain in China,
as its second economy hotel brand. Home Inns Group aims to offer a consistent
product and high-quality services to primarily serve the fast growing
population of value-conscious individual business and leisure travelers who
demand clean, comfortable and convenient lodging. Home Inns Group's ADSs, each
of which represents two ordinary shares, are currently trading on the NASDAQ
Global Select Market under the symbol "HMIN."For more information about Home
Inns Group, please visit http://english.homeinns.com.

Safe Harbor

This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Any
statements in this press release that are not historical facts are
forward-looking statements that involve factors, risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. Such factors and risks include our anticipated
growth strategies; our future results of operations and financial condition;
the economic conditions of China; the regulatory environment in China; our
ability to attract customers and leverage our brand; trends and competition in
the lodging industry; the expected growth of the lodging market in China; our
expected successful consolidation and integration of Motel 168 with our
existing operations; and other factors and risks detailed in our filings with
the Securities and Exchange Commission. This press release also contains
statements or projections that are based upon information available to the
public, as well as other information from sources which management believes to
be reliable, but it is not guaranteed by us to be accurate, nor does it
purport to be complete. We undertake no obligation to update or revise to the
public any forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable law.

Non-GAAP Financial Measures

To supplement Home Inns Group's unaudited consolidated financial results
presented in accordance with U.S. GAAP, Home Inns Group uses the following
non-GAAP measures:

1.total operating costs and expenses excluding share-based compensation
    expenses and acquisition and integration costs
2.total leased-and-operated hotel costs excluding share-based compensation
    expenses and integration costs
3.personnel costs of franchised-and-managed hotels excluding share-based
    compensation expenses
4.sales and marketing expenses excluding share-based compensation expenses
5.general and administrative expenses excluding share-based compensation
    expenses and acquisition and integration costs
6.income from operations excluding share-based compensation expenses and
    acquisition and integration costs
7.adjusted net income attributable to shareholders excluding any share-based
    compensation expenses, foreign exchange gain or loss, acquisition and
    integration cost, upfront fee amortization of term loan, gain or loss from
    fair value change of convertible notes and interest swap derivatives,
    withholding tax for profit distribution of previous periods and other
    non-operating expenses
8.adjusted basic and diluted earnings per ADS and per share excluding
    foreign exchange gain or loss, share-based compensation expenses, gain on
    buy-back of convertible bonds, issuance costs for convertible notes, gain
    or loss from fair value change of convertible notes, acquisition and
    integration cost, withholding tax for profit distribution of previous
    periods, non-operating expenses and upfront fee amortization of term loan,
    and
9.adjusted EBITDA excluding foreign exchange gain or loss, share-based
    compensation expenses, gain on buy-back of convertible bonds, issuance
    costs for convertible notes, gain or loss from fair value change of
    convertible notes, acquisition and integration costs, non-operating
    expenses and upfront fee amortization of term loan

Any financial data referring to "Excluding Motel 168" are also non-GAAP
financial measures. The presentation of these non-GAAP financial measures is
not intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with U.S. GAAP. For
more information on these non-GAAP financial measures, please see the table
captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end
of this press release.

Home Inns Group believes that, used in conjunction with GAAP financial
measures, these non-GAAP financial measures provide meaningful supplemental
information regarding the Group's performance, and both management and
investors benefit from referring to these non-GAAP financial measures in
assessing the Group's performance and when planning and forecasting future
periods. Management believes that EBITDA, defined as earnings before interest,
income tax expense, depreciation and amortization, is a useful financial
metric to assess Home Inns Group's operating and financial performance before
the impact of investing and financing transactions and income taxes. In
addition, management believes that EBITDA is widely used by other companies in
the lodging industry and may be used as an analysis tool by both management
and investors to measure and compare Home Inns Group's operational and
financial performance with industry peers.

One of the limitations of using non-GAAP income from operations, EBITDA,
adjusted EBITDA and non-GAAP net income attributable to shareholders is that
they do not include all items that impact Home Inns Group's net income (loss)
for the period. These non-GAAP measures exclude share-based compensation
expenses, foreign exchange gain or loss and gain or loss from fair value
change of convertible notes, which have been and will continue to be a
significant recurring expense in Home Inns Group's business. In addition, Home
Inns Group's EBITDA and adjusted EBITDA may not be comparable to EBITDA or
similarly titled measures utilized by other companies since such other
companies may not calculate EBITDA in the same manner as Home Inns Group does.
Management compensates for this and other limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP measure.
Home Inns Group computes the non-GAAP financial measures using the same
consistent method from quarter to quarter. Reconciliations of GAAP and
non-GAAP results are included at the end of this press release. The non-GAAP
adjustment items do not include the tax impact.

The presentation of EBITDA and adjusted EBITDA should not be construed as an
indication that Home Inns Group's future results will be unaffected by other
charges and gains Home Inns Group considers to be outside the ordinary course
of its business.

Home Inns Group completed its acquisition of 100% equity interest in Motel
168, and took control of Motel 168 effective on October 1, 2011. Home Inns
Group has consolidated Motel 168's operating and financial results since
October 1, 2011. Home Inns Group has presented certain separated financial
data of Motel 168 in this earning release for the purpose of providing more
information to investors. Home Inns Group will provide separate financial data
for Motel 168 through the 2012 fiscal year.

For investor and media inquiries, please contact:

Ethan Ruan
Home Inns & Hotels Management Inc.
Tel: + 86-21-3401-9898*2004
Email: zjruan@homeinns.com

Cara O'Brien
FTI Consulting
Tel: +852-3768-4537
Email: cara.obrien@fticonsulting.com

Appendix 1:

For the purpose of providing more context and comprehensive information to
investors, Home Inns Group separately presents key financial data excluding
Motel 168 below. Home Inns Group will continue to provide separate financial
data for Motel 168 through the integration period. All information outlined
below excludes Motel 168 results and Motel 168 integration costs unless
specifically mentioned.

Third Quarter 2012 Operational and Financial  Highlights for Home Inns and
Yitel Hotels

  oThe occupancy rate was 92.7% for the third quarter of 2012, compared with
    94.1% in the same period in 2011 and 92.1% in the second quarter of 2012.
  oRevPAR was RMB 164 for the third quarter of 2012, compared with RevPAR of
    RMB 169 in the same period in 2011 and RMB 157 in the second quarter of
    2012.
  oRevPAR for mature hotels that had been in operation for at least 18 months
    was RMB 177, flat in comparison with the same group of hotels in the third
    quarter of 2011.
  oTotal revenues increased 21.4% year over year to RMB 1,199.5 million
    (US$190.9 million) for the third quarter of 2012.

       oTotal revenues from leased-and-operated hotels for the third quarter
         of 2012 were RMB 1050.7 million (US$167.2 million), an increase of
         19.1% year over year and an increase of 11.7% sequentially.
       oTotal revenues from franchised-and-managed hotels for the third
         quarter of 2012 were RMB 148.8 million (US$23.7 million), an increase
         of 40.5% year over year and an increase of 12.7% sequentially.

  oTotal operating costs and expenses were RMB 967.9 million (US$154.0
    million) for the third quarter of 2012. Total operating costs and expenses
    excluding any share-based compensation expenses, and acquisition and
    integration cost (non-GAAP) for the third quarter of 2012 were RMB 937.3
    million (US$149.1 million), representing 78.1% of total revenues, compared
    with 77.6% for the same quarter a year ago and 79.4% for the second
    quarter of 2012.

       oTotal leased-and-operated hotel costs for the third quarter of 2012
         were RMB 846.2 million (US$134.6 million). Total leased-and-operated
         hotel costs excluding any share-based compensation expenses and
         integration cost (non-GAAP) were RMB 836.7 million (US$133.1 million)
         for the third quarter of 2012, representing 79.6% of the
         leased-and-operated hotel revenues, compared to 76.3% for the same
         quarter in 2011 and 81.8% for the second quarter of 2012. The
         year-over-year increase in this expense ratio was mainly driven by
         soft market condition resulting in lack of systematic price increase
         and certain nonrecurring charges to other operating costs and
         expenses. The sequential decrease in the ratio was mainly
         attributable to seasonality.
       oPersonnel costs of franchised-and-managed hotels were RMB 37.2
         million (US$5.9 million) for the third quarter of 2012. Personnel
         costs of franchised-and-managed hotels excluding share-based
         compensation expenses (non-GAAP) were RMB 35.1 million (US$5.6
         million), representing 23.6% of franchised-and-managed hotel
         revenues, compared to 22.4% for the third quarter of 2011 and 18.8%
         for the second quarter of 2012. The sequential increase in this ratio
         was mainly due to a higher bonus accrual of performance-based bonus
         in the third quarter.
       oSales and marketing expenses were  RMB 15.9 million (US$2.5 million)
         for the third quarter of 2012. Sales and marketing expenses excluding
         shared-based compensation expenses (non-GAAP) were RMB 15.5 million
         (US$2.5 million), representing 1.3% of total revenues, compared to
         1.6% of total revenues in the same period a year ago and 1.2% in the
         second quarter of 2012. The year-over-year decrease in this ratio was
         mainly due to effort to maximize return on investment in marketing
         activities compared to the same period a year ago.
       oGeneral and administrative expenses were RMB 68.6 million (US$10.9
         million) for the third quarter of 2012. General and administrative
         expenses excluding share-based compensation expenses, and acquisition
         and integration cost (non-GAAP) for the quarter were RMB 50.0 million
         (US$8.0 million), or 4.2% of total revenues compared to 5.5% in the
         same period a year ago and 4.1% in the previous quarter. The Company
         continues to drive productivity gain and scalable operations.

  oIncome from operations was RMB 165.8 million (US$26.4 million). Income
    from operations excluding share-based compensation expenses and
    acquisition and integration cost (non-GAAP) was RMB 196.4 million (US$31.3
    million), or 16.4% of total revenues, compared to RMB 160.0 million or
    16.2% of total revenues in the same period of 2011 and RMB 158.9 million
    or 14.8% of total revenues in the second quarter of 2012.
  oEBITDA (non-GAAP) was RMB 250.6 million (US$39.9 million) for the third
    quarter of 2012. Adjusted EBITDA (non-GAAP), which excludes any
    share-based compensation expenses, foreign exchange loss, integration
    cost, loss from fair value change of convertible notes and non-operating
    expenses, was RMB 322.3 million (US$51.3 million), or 26.9% of total
    revenues for the third quarter of 2012, compared to RMB 272.9 million or
    27.6% of total revenues in the same period in 2011 and RMB 274.3 million
    or 25.6% of total revenues for the second quarter of 2012.
  oNet income attributable to Home Inns Group's shareholders was RMB 48.3
    million (US$7.7 million) for the third quarter of 2012. Adjusted net
    income attributable to Home Inns Group's shareholders (non-GAAP) excluding
    any share-based compensation expenses, foreign exchange gain or loss,
    acquisition and integration cost, upfront fee amortization of term loan,
    gain or loss from fair value change of convertible notes and interest rate
    swap contracts withholding tax for profit distribution of previous periods
    and other non-operating expenses, was RMB 130.2 million (US$20.7 million)
    for the third quarter of 2012, compared to that of RMB 132.0 million from
    the same period in 2011 and RMB 100.2 million for the second quarter of
    2012.



Home Inns & Hotels Management Inc.
Unaudited Condensed Consolidated Balance Sheet
                                       December31, 2011  September 30,
                                                          2012
                                       RMB '000           RMB '000   US$ '000
ASSETS
Current assets:
Cash and cash equivalents              1,786,038          752,454    119,726
Restricted cash                        205,926            316,184    50,309
Accounts receivable, net               91,980             104,704    16,660
Receivables from related parties       6,379              5,838      929
Consumables                            43,049             43,276     6,886
Prepayments and other current assets   137,887            177,989    28,321
Deferred tax assets                    75,446             79,572     12,661
Total current assets                   2,346,705          1,480,017  235,492
Investment in a jointly controlled     8,301              7,118      1,133
entity
Property and equipment, net            3,452,846          3,736,530  594,534
Goodwill                               2,197,728          2,252,052  358,333
Intangible assets, net                 1,174,452          1,157,165  184,121
Other assets                           170,039            116,971    18,612
Non-current deferred tax assets        199,765            255,376    40,634
Total assets                           9,549,836          9,005,229  1,432,859
LIABILITIES
Current liabilities:
Accounts payable                       91,457             70,959     11,291
Payables to related parties            2,797              4,781      761
Short term loans                       346,550            31,705     5,045
Finance lease liabilities              7,006              6,778      1,078
Salaries and welfare payable           178,032            211,039    33,579
Income tax payable                     80,356             83,353     13,263
Other taxes payable                    27,295             27,800     4,423
Deferred revenues                      202,870            217,024    34,532
Convertible bonds                      113,051            113,467    18,054
Other unpaid and accruals              154,498            164,615    26,193
Other payables                         847,090            971,716    154,614
Deferred tax liability                 38,313             23,843     3,794
Total current liabilities              2,089,315          1,927,080  306,627
Long term loans                        1,165,666          754,579    120,064
Deferred rental                        593,955            569,714    90,650
Deferred revenues                      79,202             46,918     7,465
Finance lease liabilities              7,750              3,160      503
Deposits                               63,472             85,932     13,673
Unfavorable lease liabilities          396,774            378,778    60,269
Financial liabilities*                 979,008            1,031,389  164,108
Deferred tax liabilities               294,728            289,920    46,130
Total liabilities                      5,669,870          5,087,470  809,489
Shareholders' equity
Ordinary shares (US$0.005 par value;
200,000,000 shares authorized,
90,659,882 and 90,806,820 shares      3,542              3,546      564
issued and outstanding as of December
31, 2011 and September 30 2012,
respectively)
Additional paid-in capital             2,683,923          2,758,594  438,931
Statutory reserves                     125,863            125,722    20,004
Retained earnings                      1,051,976          1,018,922  162,125
Total Home Inns shareholders' equity   3,865,304          3,906,784  621,624
Noncontrolling interests               14,662             10,975     1,746
Total shareholders' equity            3,879,966          3,917,759  623,370
Total liabilities and shareholders'    9,549,836          9,005,229  1,432,859
equity
Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.2848
representing the certificated exchange rate published by the Federal Reserve
Board.
Note 2: Financial liabilities represent convertible notes measured at fair
value and interest swap transaction.



Home Inns & Hotels Management Inc.
Unaudited Condensed Consolidated Statement of Operations
                        Quarter Ended
                        September30,2011  June 30, 2012                      September 30, 2012
                        RMB '000            RMB '000     RMB '000   RMB '000   RMB '000     US$ '000   RMB '000   RMB '000
                        Group               Group        Motel 168  excluding  Group        Group      Motel 168  excluding
                                                                    Motel 168                                     Motel 168
Revenues:

Leased-and-operated     882,070             1,300,218    359,678    940,540    1,431,786    227,817    381,068    1,050,718
hotels

Franchised-and-managed  105,962             149,724      17,700     132,024    166,624      26,512     17,797     148,827
hotels
Total revenues         988,032             1,449,942    377,378    1,072,564  1,598,410    254,329    398,865    1,199,545
 Less: Business
tax and related         (61,686)            (89,290)     (22,538)   (66,752)   (97,003)     (15,435)   (23,683)   (73,320)
surcharges
Net revenues           926,346             1,360,652    354,840    1,005,812  1,501,407    238,894    375,182    1,126,225
Operating costs and
expenses:

Leased-and-operated
hotel costs –
 Rents and        (269,017)           (450,155)    (149,278)  (300,877)  (496,559)    (79,010)   (165,845)  (330,714)
utilities
 Personnel costs  (159,394)           (267,645)    (74,899)   (192,746)  (269,260)    (42,843)   (76,527)   (192,733)
 Depreciation     (90,746)            (148,524)    (43,141)   (105,383)  (156,294)    (24,869)   (41,830)   (114,464)
and amortization
 Consumables,     (57,176)            (87,207)     (25,433)   (61,774)   (96,555)     (15,363)   (25,258)   (71,297)
food and beverage
 Others           (98,011)            (168,848)    (58,509)   (110,339)  (195,247)    (31,067)   (58,254)   (136,993)
 Total
leased-and-operated     (674,344)           (1,122,379)  (351,261)  (771,118)  (1,213,915)  (193,152)  (367,715)  (846,200)
hotel costs
 Personnel costs of
Franchised-and-managed  (25,370)            (32,811)     (5,987)    (26,824)   (45,046)     (7,167)    (7,894)    (37,152)
hotels
 Sales and           (16,067)            (15,559)     (1,777)    (13,782)   (18,351)     (2,920)    (2,405)    (15,946)
marketing expenses
 General and
administrative          (112,082)           (74,005)     (11,612)   (62,393)   (77,850)     (12,387)   (9,221)    (68,629)
expenses
Total operating costs  (827,863)           (1,244,754)  (370,637)  (874,117)  (1,355,162)  (215,626)  (387,235)  (967,927)
and expenses
 Other income        -                   4,528        92         4,436      7,742        1,232      239        7,503
Income/(loss) from     98,483              120,426      (15,705)   136,131    153,987      24,500     (11,814)   165,801
operations
Interest income        6,756               3,336        317        3,019      615          98         190        425
Interest expenses      (6,007)             (43,919)     (202)      (43,717)   (27,182)     (4,325)    (177)      (27,005)
Loss from equity       -                   (843)        (843)                 (466)        (74)       (467)
investment
Gain/(loss) on change
in fair value of        121,194             9,823        -          9,823      (26,765)     (4,259)    -          (26,765)
convertible notes
Non-operating income   21,088              13,820       2,166      11,654     11,044       1,758      2,136      8,908
Non-operating          -                   -            -          -          (7,818)      (1,244)    -          (7,818)
expenses
Foreign exchange       (756)               (10,263)     (267)      (9,996)    (6,748)      (1,074)    (212)      (6,536)
loss, net
Income/(loss) before
income tax expenses     240,758             92,380       (14,534)   106,914    96,667       15,380     (10,344)   107,010
and noncontrolling
interests
Income tax expense     (75,162)            (54,169)     (4,766)    (49,403)   (62,255)     (9,906)    (4,239)    (58,016)
Net income/(loss)      165,596             38,211       (19,300)   57,511     34,412       5,474      (14,583)   48,994
Less:Net income
attributable to         (1,333)             (1,800)      -          (1,800)    (703)        (112)      -          (703)
noncontrolling
interests
Net income/(loss)
attributable to Home    164,263             36,411       (19,300)   55,711     33,709       5,362      (14,583)   48,291
Inns Group's
shareholders
Earnings per share
— Basic                 2.00                0.40                    0.61       0.37         0.06                  0.53
— Diluted               0.31                0.37                    0.57       0.37         0.06                  0.52
Weighted average
ordinary shares
outstanding
— Basic                 82,311              90,753                  90,753     90,771       90,771                90,771
— Diluted               92,276              100,045                 100,045    92,600       92,600                92,600
Share-based
compensation expense
was included in the
statement of
operations as follows:
Leased-and-operated
hotel costs –           1,647               2,181        461        1,720      2,025        322        261        1,764
Personnel costs
Personnel costs of
Franchised-and-managed  1,660               2,529        550        1,979      2,410        383        313        2,097
hotels
Sales and marketing     339                 400          -          400        407          65         -          407
expenses
General and
administrative          16,476              19,630       965        18,665     19,195       3,054      545        18,650
expenses
Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.2848
on September 30, 2012, representing the certificated exchange rate published by the Federal Reserve Board.
Note 2: The Company started consolidation of the operating results of Motel 168 effective October 1,2011, therefore the
acquisition had no impact on the third quarter of 2011.



Home Inns & Hotels Management Inc.
Reconciliation of GAAP and Non-GAAP Results
                        Quarter Ended September 30, 2012                                                        Quarter Ended September 30, 2012(excluding Motel 168)
                        GAAP         %of    Share-based   Acquisition  Integration  %of    Non-GAAP     %of    GAAP       %of    Share-based   Acquisition  Integration  %of    Non-GAAP   %of
                        Result       Total  Compensation  expenses    cost         Total  Result       Total  Result     Total  Compensation  expenses    cost         Total  Result     Total
                                     Rev                                             Rev                 Rev               Rev                                             Rev               Rev
                        RMB '000            RMB '000      RMB '000     RMB '000             RMB '000            RMB '000          RMB '000      RMB '000     RMB '000             RMB '000
Leased-and-operated     (1,213,915)  75.9%  2,025         -            25,406        1.7%   (1,186,484)  74.2%  (846,200)  70.5%  1,764         -            7,714         0.8%   (836,722)  69.8%
hotel costs
Personnel costs of
Franchised-and-managed  (45,046)     2.8%   2,410         -            -             0.2%   (42,636)     2.7%   (37,152)   3.1%   2,097         -            -             0.2%   (35,055)   2.9%
hotels
Sales and marketing     (18,351)     1.1%   407           -            -             0.0%   (17,944)     1.1%   (15,946)   1.3%   407           -            -             0.0%   (15,539)   1.3%
expenses
General and
administrative          (77,850)     4.9%   19,195        -            1,224         1.3%   (57,431)     3.6%   (68,629)   5.7%   18,650        -            -             1.6%   (49,979)   4.2%
expenses
Total operating costs   (1,355,162)  84.8%  24,037        -            26,630        3.2%   (1,304,495)  81.6%  (967,927)  80.7%  22,918        -            7,714         2.6%   (937,295)  78.1%
and expenses
Income from operations  153,987      9.6%   24,037        -            26,630        3.2%   204,654      12.8%  165,801    13.8%  22,918        -            7,714         2.6%   196,433    16.4%
                        Quarter Ended September 30, 2012                                                        Quarter Ended September 30, 2012(excluding Motel 168)
                        GAAP         %of    Share-based   Acquisition  Integration  %of    Non-GAAP     %of    GAAP       %of    Share-based   Acquisition  Integration  %of    Non-GAAP   %of
                        Result       Total  Compensation  expenses    cost         Total  Result       Total  Result     Total  Compensation  expenses    cost         Total  Result     Total
                                     Rev                                             Rev                 Rev               Rev                                             Rev               Rev
                        US$ '000            US$ '000      US$ '000     US$ '000             US$ '000            US$ '000          US$ '000      US$ '000     US$ '000             US$ '000
Leased-and-operated     (193,152)    75.9%  322           -            4,042         1.7%   (188,788)    74.2%  (134,642)  70.5%  281           -            1,227         0.8%   (133,134)  69.8%
hotel costs
Personnel costs of
Franchised-and-managed  (7,167)      2.8%   383           -            -             0.2%   (6,784)      2.7%   (5,911)    3.1%   334           -            -             0.2%   (5,578)    2.9%
hotels
Sales and marketing     (2,920)      1.1%   65            -            -             0.0%   (2,855)      1.1%   (2,537)    1.3%   65            -            -             0.0%   (2,472)    1.3%
expenses
General and
administrative          (12,387)     4.9%   3,054         -            195           1.3%   (9,138)      3.6%   (10,920)   5.7%   2,967         -            -             1.6%   (7,952)    4.2%
expenses
Total operating costs   (215,626)    84.8%  3,824         -            4,237         3.2%   (207,565)    81.6%  (154,011)  80.7%  3,647         -            1,227         2.6%   (149,137)  78.1%
and expenses
Income from operations  24,500       9.6%   3,824         -            4,237         3.2%   32,561       12.8%  26,381     13.8%  3,647         -            1,227         2.6%   31,255     16.4%
                        Quarter Ended June 30, 2012                                                             Quarter Ended June 30, 2012(excluding Motel 168)
                        GAAP         %of    Share-based   Acquisition  Integration  %of    Non-GAAP     %of    GAAP       %of    Share-based   Acquisition  Integration  %of    Non-GAAP   %of
                        Result       Total  Compensation  expenses    cost         Total  Result       Total  Result     Total  Compensation  expenses    cost         Total  Result     Total
                                     Rev                                             Rev                 Rev               Rev                                             Rev               Rev
                        RMB '000            RMB '000      RMB '000     RMB '000             RMB '000            RMB '000          RMB '000      RMB '000     RMB '000             RMB '000
Leased-and-operated     (1,122,379)  77.4%  2,181         -            23,942        1.8%   (1,096,256)  75.6%  (771,118)  71.9%  1,720         -            -             0.2%   (769,398)  71.7%
hotel costs
Personnel costs of
Franchised-and-managed  (32,811)     2.3%   2,529         -            -             0.2%   (30,282)     2.1%   (26,824)   2.5%   1,979         -            -             0.2%   (24,845)   2.3%
hotels
Sales and marketing     (15,559)     1.1%   400           -            48            0.0%   (15,111)     1.0%   (13,782)   1.3%   400           -            -             0.0%   (13,382)   1.2%
expenses
General and
administrative          (74,005)     5.1%   19,630        -            1,288         1.4%   (53,087)     3.7%   (62,393)   5.8%   18,665        -            -             1.7%   (43,728)   4.1%
expenses
Total operating costs   (1,244,754)  85.8%  24,740        -            25,278        3.4%   (1,194,736)  82.4%  (874,117)  81.5%  22,764        -            -             2.1%   (851,353)  79.4%
and expenses
Income from operations  120,426      8.3%   24,740        -            25,278        3.4%   170,444      11.8%  136,131    12.7%  22,764        -            -             2.1%   158,895    14.8%
                        Quarter Ended September 30, 2011
                        GAAP         %of    Share-based   Acquisition  Integration  %of    Non-GAAP     %of
                        Result       Total  Compensation  expenses    cost         Total  Result       Total
                                     Rev                                             Rev                 Rev
                        RMB '000            RMB '000      RMB '000     RMB '000             RMB '000
Leased-and-operated     (674,344)    68.3%  1,647         -            -             0.2%   (672,697)    68.1%
hotel costs
Personnel costs of
Franchised-and-managed  (25,370)     2.6%   1,660         -            -             0.2%   (23,710)     2.4%
hotels
Sales and marketing     (16,067)     1.6%   339           -            -             0.0%   (15,728)     1.6%
expenses
General and
administrative          (112,082)    11.3%  16,476        41,392       -             5.9%   (54,214)     5.5%
expenses
Total operating costs   (827,863)    83.8%  20,122        41,392       -             6.2%   (766,349)    77.6%
and expenses
Income from operations  98,483       10.0%  20,122        41,392       -             6.2%   159,997      16.2%
Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.2848 on September 30, 2012, representing the certificated exchange rate published
by the Federal Reserve Board.



Home Inns & Hotels Management Inc.
Reconciliation of GAAP and Non-GAAP Results (continued)
                     Quarter Ended
                     September30,2011  June 30, 2012             September 30, 2012
                                                      RMB'000                                RMB'000
                     RMB '000            RMB '000     (excluding   RMB '000     US$ '000     (excluding
                                                      Motel 168)                            Motel 168)
                     (unaudited)         (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited)
Net income
attributable to      164,263             36,411       55,711       33,709       5,362        48,291
Home Inns Group's
shareholders (GAAP)
Foreign exchange     756                 10,263       9,996        6,748        1,074        6,536
loss, net
Share-based          20,122              24,740       22,764       24,037       3,824        22,918
compensation
Acquisition
expenses -- Motel    41,392              -            -            -            -            -
168
Integration cost     -                   25,278       -            26,630       4,237        7,714
Interest expenses
-- Upfront fee       -                   25,290       25,290       10,126       1,611        10,126
amortization of
term loans
Non-operating
(income)/expenses--
(Gain)/loss on       -                   (3,689)      (3,689)      7,818        1,244        7,818
change in fair
value of interest
swap contracts
(Gain)/loss on
change in fair       (121,194)           (9,823)      (9,823)      26,765       4,259        26,765
value of
convertible notes
Withholding tax for
profit distribution  26,693              -            -            -            -            -
of previous periods
Adjusted net income
attributable to
Home Inns Group's    132,032             108,470      100,249      135,833      21,611       130,168
shareholders
(Non-GAAP)
                     Quarter Ended
                     September30,2011  June 30, 2012             September 30, 2012
                                                      RMB'000                                RMB'000
                     RMB '000            RMB '000     (excluding   RMB '000     US$ '000     (excluding
                                                      Motel 168)                            Motel 168)
                     (unaudited)         (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited)
Earnings per share
(GAAP)
— Basic              2.00                0.40         0.61         0.37         0.06         0.53
— Diluted            0.31                0.37         0.57         0.37         0.06         0.52
Weighted average
ordinary shares
outstanding
— Basic              82,311              90,753       90,753       90,771       90,771       90,771
— Diluted            92,276              100,045      100,045      92,600       92,600       92,600
Adjusted earnings
per share
(Non-GAAP)
— Basic              1.60                1.20         1.10         1.50         0.24         1.43
— Diluted            1.43                1.08         1.00         1.47         0.23         1.41
Weighted average
ordinary shares
outstanding
— Basic              82,311              90,753       90,753       90,771       90,771       90,771
— Diluted            92,276              100,045      100,045      92,600       92,600       92,600
Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of
US$1.00=RMB6.2848
on September 30, 2012, representing the certificated exchange rate published by the Federal Reserve
Board.
Note 2: The non-GAAP adjustment items do not include the tax impact.



Home Inns & Hotels Management Inc.
Reconciliation of GAAP and Non-GAAP Results (continued)
                     Quarter Ended
                     September30,2011  June 30, 2012             September 30, 2012
                                                      RMB'000                                RMB'000
                     RMB '000            RMB '000     (excluding   RMB '000     US$ '000     (excluding
                                                      Motel 168)                             Motel 168)
                     (unaudited)         (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited)
Net income
attributable to      164,263             36,411       55,711       33,709       5,362        48,291
Home Inns Group's
shareholders
Interest income      (6,756)             (3,336)      (3,019)      (615)        (98)         (425)
Interest expenses    6,007               43,919       43,717       27,182       4,325        27,005
Income tax expense   75,162              54,169       49,403       62,255       9,906        58,016
Depreciation and     93,141              153,623      109,245      161,006      25,618       117,680
amortization
EBITDA (Non-GAAP)    331,817             284,786      255,057      283,537      45,113       250,567
Foreign exchange     756                 10,263       9,996        6,748        1,074        6,536
loss, net
Share-based          20,122              24,740       22,764       24,037       3,824        22,918
compensation
Acquisition
expenses -- Motel    41,392              -            -            -            -            -
168
Integration cost     -                   25,278       -            26,630       4,237        7,714
Non-operating
(income)/expenses--
(Gain)/loss on       -                   (3,689)      (3,689)      7,818        1,244        7,818
change in fair
value of interest
swap contracts
(Gain)/loss on
change in fair       (121,194)           (9,823)      (9,823)      26,765       4,259        26,765
value of
convertible notes
Adjusted EBITDA      272,893             331,555      274,305      375,535      59,751       322,318
(Non-GAAP)
%of total revenue    27.6%               22.9%        25.6%        23.5%        23.5%        26.9%
Note 1: The "Depreciation and amortization expense" includes the depreciation and amortization expenses
of the Group.
The depreciation and amortization expenses of all leased-and-operated hotels are included in "Operating
costs and expenses".
The depreciation and amortization expenses of administrative long-term assets are included in "General
and administrative expenses".



Home Inns & Hotels Management Inc.
Operating Data
                        As of and for the quarter ended
                        September30,2011  June 30, 2012                          September 30, 2012
                        Excluding Motel     Group               Motel   Excluding  Group    Motel   Excluding
                        168                                     168     Motel 168           168     Motel 168
Total Hotels in         1,004               1,580               316     1,264      1,682    321     1,361
operation:

Leased-and-operated     500                 733                 144     589        770      146     624
hotels

Franchised-and-managed  504                 847                 172     675        912      175     737
hotels
Total rooms             114,792             193,105             48,358  144,747    204,678  48,619  156,059
Occupancy rate (as a    94.1%               89.2%               80.8%   92.1%      90.3%    82.7%   92.7%
percentage)
Average daily rate (in  180                 167                 159     170        174      162     177
RMB)
RevPAR (in RMB)         169                 149                 129     157        157      134     164
Like-for-like
performance for hotels
opened for at least 18
months during the
current quarter
                        As of and for the quarter ended
                        September 30, 2011  September30,2012
                        Excluding Motel     Excluding Motel
                        168                 168
Total Hotels in         833                 833
operation:

Leased-and-operated     446                 446
hotels

Franchised-and-managed  387                 387
hotels
Total rooms             95,740              96,479
Occupancy rate (as a    97.7%               97.3%
percentage)
Average daily rate (in  181                 182
RMB)
RevPAR (in RMB)         177                 177
The Company did not participate in the operating of Motel 168 before the 4th quarter 2011, therefore the
above like-for-like performance figures do not include Motel 168 hotels.
* "Occupancy rate" refers to the total number of occupied rooms divided by the total number of available
rooms in a given period.
"Average daily rate" refers to total hotel room revenues divided by the total number of occupied rooms in a
given period.
"RevPAR" represents revenue per available room, which is calculated by dividing total hotel room revenues by
the total number of available rooms in a given period, or by multiplying average daily rates and occupancy
rates in a given period.

SOURCE Home Inns & Hotels Management Inc.

Website: http://english.homeinns.com