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1、Home Inns & Hotels Management Inc.A Leading Economy Hotel ChainNovember 2014Important NoticeThis presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquiresecurities of Home Inns & Hotels Management Inc. (“Home Inns Group” or the “Company”) i

2、n any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Specifically, this presentation does not constitute a“prospectus” within the meaning of the U.S. Securitieof

3、 1933, as amended.This presentation has been prepared by the Company solely for use at the investor presentation. The informationcontained in this presentation has not been independently verified. No representation, warranty or undertaking,express or implied, isas to, and no reliance should be place

4、d on, the fairness, accuracy, completeness orcorrectness of the information or the opinions contained herein. None of the Company or any of its affiliates,advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its c

5、ontents or otherwise arising in connection with the presentation.This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to theconsolidated

6、 results of operations and final condition of the Company. These statements can be recognizedby the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similarmeaning. Such forward-looking statements are not guarantees of future performance and involve ri

7、sks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.Participants agree not

8、 to photograph, copy or otherwise reproduce these materials in any form or pass on thesematerials to any otherfor any purpose.2Executive SummarylHigh unit growth driven by high FM demandAt <20% of lodging market, economy hotels sees ample room for growthFavorable long-term business & Leisure

9、travel growth potentialEmerging Market Dynamicsll21.8% market share by room count in economy hotel sector FYE 122,496 hotels in 315 cities with four brands as of Sep 30, 201421.2 million individual frequent guests; 90% bookings are non-OTA drivenlUndisputed Market LeaderllLO: Long-term leases, sub-i

10、nflationary escalations, ￥70K/room investment for Economy brandsFM: no capital requirements and high-margin fee revenue>60% FM hotels by 3Q2014; at least 85% FM hotels for new openingslAsset-Light Business MslllIncreasing revenue mix from margin-rich FMContinued cost control and productivity gain

11、s Opportunistic and systematic price hike to protect andSustainable ProfitableGrowthllize marginExcellent bth and depth of experience in relevndustrieslHigh Caliber andProfessional ManagementMultinational experience with proven strategies and executionStable organization and improving professionalis

12、mll3Long Term Market PotentialIncreasing Domestic Business and Leisure Travel Driving Long-Term GrowthNumber of Domestic Trips(1)Ongoing Demand Shift to Economy Hotels (2)(mm-times)3,2602,0001,5001,0005007842001Total Spending on Domestic Travel(1)40%20%29(RMB bn)2,6271,0000%2 045000l Capturing previ

13、ous 1-3 star hotels market2001l Rapid growth innew demandtravel market drives(1) Source:(2) Source: Goldman Sachs Equity Research & National Tourism Administration of43 2Long Term Market Potential (continued)Significant Upside Potential for Economy Hotels in Fragmented Hotel IndustryLodging Mark

14、et Share By Room(1)Economy Hotel Market Share By Room(2)Jin Jiang 8.5%Hng4-5 Star21%11.6%GreenTree 6.2%Super 83.7%Vienna 1.8%99 Inn 1.6%Independent 39%7 Days13.6%1-3 Star25%Other Economy Hotels 31.2%Home Inn + Motel 21.8%Economy 15%l As of 1H2012, economy hotels* represent 15% of lodging market, whi

15、ch consists ofapproximately 6.5 million rooms.* Economy hotels do not participate in star-rating systeml As of December 31, 2012, there were 9,924economy hotelswith 981,712 rooms(1)(2)Source: Ministry of Commerce of Source:;National Tourism Administration,5Company OverviewTo become the leader within

16、hotel industryMissionproviding lodging products & services to teral publiclA leading economy hotel chaingeographic coverageby number of hotels andCompanylA consistent product and high-quality services catering to value-conscious business and leisure travelersFounded in 2002; 10 hotels in 4 citie

17、s at the end of 20032,180 hotels in 287 cities under four brands as of Dec 31, 2013 RMB 6.35 billion (US$ 1.05 billion) gross revenue in year 2013lGrowthll2013's Most Investment-worthy Mid-range Business HotelBrand for YitelRecognitions2012Brand of the Year by CCTV2010 International Franchisor o

18、f the Year by FLA2010s Most Popular Brand in Green Economy HotelsConsecutive Golden Pillow Award for Best Brand in Economy Hotelsfrom 2005 through 20136Sound StrategiesNumber of hotels2,4963-yr CAGR2,18038.6%Franchised-and-managed hotelsLeased-and-operated hotels1,7721,58653.2%1,4261,308969818728616

19、47136426624.3%910 226 8721344068145803267169810454 1454 83261959410182003420048200522200639200766200894200912020101462011212201225320132873Q14315# of citiesExpand foot print and deepen penetration and capitalize on early-mover advantageImplement multi-brand strategy and strengthen customer loyalty a

20、nd brand valueAttract, train, retain and continuously develop all levels of people in the organizationEnhance information infrastructure to enable operational excellenceBalance growth and profitability with investment discipline and productivity focus7390Dedicated PeopleSeasoned Senior Management Te

21、am with Bth and Depth of Experience inHospitality, Consumer and Other Service IndustriesDavid SunCEO, 2004Jason Zong President & COO, 2006Cathy Li CFO(1,) 2014ll10 years of prior experience in consumer industryFormer vice president of operations for B&Q, a subsidiary of Kingfisherll10 years

22、of prior experience in consumer industryFormer Operation Vice President and General Manager of the east region of B&Qll20 years of business and finance experience in retail and consumer products industriesFormer CFO of Hengdeli Holdings Limited (3389.HK)May WuCSO(2,) 2006ll11 years of prior expe

23、rience in consulting and investment in lodging and consumer sectorsFormer First Vice President at Schroeder Investment Management, North AmericaMotivated and Well-Trained EmployeesCareer-oriented Training at Home Inns Academy and On-the-JobInternal Promotion and Career Development OpportunitiesPerfo

24、rmance-based Bonus and Share-based Compensation(1) Effective on Aug 25, 2014; (2) Chief Strategy Officer8Operational ExcellenceWell-integrated, Centrally Managed and Locally ExecutedAward winning Home Inns AcademyMulti-channel pipeline for qualified hotel Managers e-Learning platform open to all emp

25、loyeeslllTraining andAdvancementConsistent measures for quality of facilities and servicesScheduled inspections and “secret customer” programs Quality score cards enable performance managementlllQuality Assurance ProgramsPerformance- based IncentiveslllCompensive and resuriven KPIsIntegrated with pl

26、anning and measurement cycleDynamically aligned with corporate initiativesllled hotel-level budget and operating planReal-time visibility for monitoring and analysesWeekly reviews with city/regional managersBudgeting and Monitoring9Controls FrameworkProprietary, Integrated, Efficient and ScalableHot

27、elManagement PlatformCentral Reservation System (CRS)Tool-calls, internet and mobile bookings processingCustomer Relationship Management System (CRM)Member information database and analyticsProperty Management System (PMS)Room rates and inventory controlsynchronized with CRS and CRMManagement Report

28、ing System (MRS)Real-time central repository and reporting of operating data10Brand Portfolio2,496 hotel locations in 315 cities across(1)as of Sep 30, 2014lLeading economy hotel brandlBrand perception: warmth and home-like feelHarbinChangchunUrumqiFast growing economy hotel brandShenyanglHohhotDali

29、anlBrand perception: trendiness and efficSiheijianzhcuayngTianjinYinchuanXiningTaiyuanJinanLanzhoulMid-scale business hotel brandZhengzhouXianlBrand perception: elegance and attentivenesHsefeiNanjingHangzhouLasaShanghaiChengduWuhanChongqingNanchangRegional economy hotel brand GinuiyaYngunnanChaanngs

30、hda SouthFwuzheoustlBrand perception: attracKtuinlwith regional themeGuangzhouNanningShenzhenHaikou(1) 208 additional hotels contracted (27 leased-and-operated hotels and 181 franchised-and-managed hotels) and 227 additional hotels under Due Diligence as of Sep 30, 201411Homeinn (如家)A Value Proposit

31、ionSignificant Brand Recognition as a Leader in the Economy Hotel Chain SectorStandardized Yet Differentiated ProductComfortable bed,broadband,lIn-Room Facilitiescold and hot drinking water supply, 24x7 in-room hot waterComfortWarmthConvenienceBasic meals, business center, vending machine, etc.Other

32、 AmenitieslCleanlinessValueConsistent design, appearance, color scheme, decoration, lightingLook & Feell12Homeinn (如家)Recent development2,042 hotels as of Sep 30, 2014Steady unit growthfocus on franchise-and-managed business mProduct modernization to enhance value and pricing potentialdevelopmen

33、t13Motel ()The 5th Largest Economy Hotel BrandPoised for GrowthAn Economy Hotel ProductA Widely Recognized Brand in Key Gateway Citieswith UniquealityComfortable bed,broadband,High geographic concentration in the more developed markets of Shanghai and surrounding gate-way citieslIn-Room Facilitiesco

34、ld and hot drinking watersupply, 24x7 in-room hot waterOther AmenitiesBasic meals, business center,vending machine, etc.lStrong appeal to young travelers, leisure customers, and creative industry professionalsContemporary design to create a bold and refreshing impressionLook & Feell14Motel ()Rec

35、ent Developments - Integration completed in the 3rd quarter of 2013392 hotels as of Sep 30, 2014Continue brand expansion with differentiated look and feelBrand of choice for economy hotel openings to further penetrate mature market15Yitel (和颐)Emerging Market SegmentMid-scale Pricing, Upgraded Experi

36、enceDeliver High Customer Satisfactionfrom Multiple DimensionsHigh quality bed and bedding,refrigerator, complete toiletries, multi-lAchieving balanceIn-RoomFacilitiesmedia,WiFiFeels like home, works like businessDesign and functionalityDining room, business center, and wellness facilitiesOther Amen

37、itieslDedicated guest relations managersElegant and refined design incorporating natural elementslLook & Feeldeliveringalized services16Yitel (和颐)Recent developments31 hotels in operation as of Sep 30, 2014 in 14 tier-one and provincial capital citiesPositive feedback from customers and strong o

38、perating performanceIntroduction of varied business ms including franchise, JV and management contract17四季)Fairyland (A Locally Well-known Economy Hotel Brand in YunnanAn Economy Hotel Product with Regional ThemeA Strong Local Brand in Yunnan ProvinceComfortable bed,broadband,Strong presence in Kun

39、in Yunnan Provinceand other major citieslIn-Room Facilitiescold and hot drinking watersupply, 24x7 in-room hot waterOther AmenitiesBasic meals, business center,vending machine, etc.lAppeal to business and leisure travelers favoring a unique style with local characterDistinctive style with regional d

40、eco elementsLook & Feell18四季)Fairyland (Recent Developments Acquired on May 1, 201431 hotels as of Sep 30, 2014Potential brand expansion in Yunnan and southwest19Business MBalance andsin continued expansion and penetrationLeased-and-OperatedFranchised-and-ManagedHome Inns Group leases property f

41、rom a 3rd party, invests in hotel conversionFranchisee owns or rents property and invests in conversion CapEx maintenancelloingCapExoing R&MBusinessMsTypical 10 to 20-year lease term with sub-inflationary escalationsHome Inns Group retains revenues and profits from hotel operations after operati

42、ng expensesHome Inns Group franchises brand and sends GMs to manage the hotels*Home Inns Group earns a one-lllltime initiation feeoingfranchise and management feeFranchisee retains profits after fees and operating expenseslTypical mused to openlnew markets in earlier yearsNumber of Hotels(1)RevenueC

43、ontribution(2)(1) As of Sep 30, 2014(2) Per result of 3Q2014 operations* GMnel costs are reimbursed by franchisee2014.1%85.9%1,586910Development ProcessAmple Opportunities Still Exist for Continued ExpansionBasic Selection Criteria: Population of over 500,000 Annul GDP Per Capita above 1,200 USD330

44、cities targetedStandardized and Replicable Process Run by Disciplined and Experienced TeamsLeased-and-Operated HotelsAppoint General ManagerHire and Train Hotel StaffHotel ConversionDueDiligence and NegotiationIdentify Potential MarketsSelect Hotel LocationsProject and Contract ApprovalFranchised-an

45、d-Managed HotelsAssist in Hiring and Training Hotel StaffSupervise in Hotel ConversionAppoint General Manager214 - 6 monthsCustomersStable Repeat Customer Base and Increasing Customer LoyaltyFavorable Channel MixRoom Nights Stayed by Customer Channel(1)Strong Brand LoyaltyGrowth of “Active” Membersh

46、ip(3)(000)Member (2) Booking via CRS30%57%Travel Intermediary 10%CRS = Central Reservation System(1) For third quarter 2014; (2) Mobile APP booking which is a portion of Member Booking via CRS,ed for 18% of total booking;(3) “Active” members paid a one-time membership fee and stay at Home Inns Group

47、s hotels at least once within two years to remain active.22Quarterly Operating PerformanceKey performance metricsRevPARADROccupancy %Expo 10 May - OctAcquired Motel07 - 08lower-tier strategyConcluded Motel IntegrationGFC 82.9%200120.00%100.00%15080.00%10060.00%40.00%5020.00%00.00%1Q08 2Q08 3Q08 4Q08

48、 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14l Consistently high occupancy rates supported by demand-driven market dynamicsl Inflationary-like price increases designed to offset cost increases in normal environmentl Diverse geogra

49、phic coverage with early-mover advantage in lower tiers with long-term growthl Resilient economy productrecession or market slow-downl Multi-economy brands for greater access and deeper penetration23Performance (Contd)High Occupancy Rate and Improving ADRLike-for-Like Performance ComparisonHotels in

50、 Operation for At Least 18 Months During the Quarter24GroupCoMINMotelGroupCoMINMotelGroupCoMINMotelNumber of Hotels1,6541,3283261,7321,4043281,8131,483330Quarter End1Q1Q1Q1Q1Q1Q2Q2Q2Q2Q2Q2Q3Q3Q3Q3Q3Q3Q131413141314131413141314131413141314Occupancy86%84%89%86%78%79%89%89%91%90%84%85%91%89%93%90%87%86%

51、ADR (RMB)157157158158152154168166170167162163174175177177163167RevPAR (RMB)135132140135119122150148154150135139159156165160142144YoY RevPAR change (RMB)-3-53-2-44-3-52Final HighlightsNote: Started consolidation of Motels results on Oct 1, 201125(RMB millions except EP-ADS in RMB yuan)201120123Q13201

52、33Q143Q14MovementRevenues from Leased-and-Operated Hotels3,559.75,164.81,535.15,587.51,612.05.0%Revenues from Franchised-and-Managed Hotels400.0604.9204.1765.5264.429.5%Total Revenue3,959.75,769.71,739.26,353.01,876.47.9%Revenue Growth %25.0%45.7%8.8%10.1%7.9%n/aAdjusted Income from Operations1457.3464.1251.1625.6304.321.2%Adj. Operationg Margin %11.5%8.0%14.4%9.8%16.2%180 bpsAdjusted Net Income¹326.1300.3180.9422.8224.324.0%Adj. Net Margin %8.2%5.2%10.4%6.7%12.0%160