Home Inns Said to Near Purchase of Morgan Stanley Hotel

Home Inns & Hotels Management Inc., China’s second-biggest budget hotel operator, is close to an agreement to buy Morgan Stanley’s 59 percent stake in Shanghai Motel Management Ltd., two people familiar with the matter said.

Nasdaq-traded Home Inns is in advanced talks with Morgan Stanley and other shareholders and may sign an agreement as early as next week, the people said, asking not to be identified because the discussions are private. The deal may value Shanghai Motel Management at as much as $500 million, they said.