Home Inns & Hotels Management Inc. (Hotel Inns) is an economy hotel chain in China. The Company develops and operates economy hotels across China under its Home Inn brand. The Company either leases real estate properties, on which it develops and operates hotels or it franchises its brand to hotel owners or manages these hotel properties. The Company refers to the former type of hotels as leased-and-operated hotels and to the latter type of hotels as franchised-and-managed hotels. As of December 31, 2008, the Company’s Home Inns hotel chain consisted of 326 leased-and-operated hotels in operation with an additional 54 leased-and-operated hotels under development and 145 franchised-and-managed hotels in operation with an additional 60 franchised-and-managed hotels under development, covering 108 cities in China.