Home Inns and Hotel Management Inc.'s (Home Inns) ADR achieved our target price on 25 June 2009, reflecting the impact of the general recent improvement in financial markets and the robust increase in the company's 1Q 09 revenues. Given the significant increase in the ADR price and current levels, we downgrade the ADR to a HOLD. We now anticipate a negative currency impact on the European stock reflecting our revised expectation ...

We believe 2009 will be a challenging year for the global travel and tourism industry. Home Inns has already stated that FY 2008 Revenue Per Available Room (RevPAR) was significantly below that of FY 2007, primarily because of lower occupancy levels as pricing did not see a significant decline. We believe that Home Inns will register lower occupancy levels in FY 2009 compared to FY 2008, reflecting the global slowdown and cutbacks in business…

Home Inns and Hotel Management Inc.’s (Home Inns) 4Q 08 total revenues were in line with our expectation, while margins were above our expectations. Going forward, given that Management’s FY 2009 guidance is in line with our growth forecast and considering the better-than-expected margins in 4Q 08, we believe Home Inns remains an attractive investment opportunity…