Financial Analyses Private Equity of Chinese Home Inns

With the rapid growth of China's GDP and per capita disposable incomes, the consumption of residents is also changing subtly. People prefer no longer to spend holidays at home, but would like to go out doors, and contact with cultural landscape intimately. The Shanghai World Expo, the Expo 2011 Xi'an China and other international events are virtually driven the prosperity and development of domestic tourism and associated industries in China. As the core of tourism, the improvement and development of the hotel industry is an important sign for a country's reception capacity. People always prefer accommodation with good quality and low price. Thus, the development of the economy hotel is particularly important. As one of the largest hotel groups, the Home Inns using private equity play leading roles to facilitate the Chinese tourism development. In the article, the authors analyze the financing processes and financial results of PE, which may provide some reference for other kind of hotels.