Editorial Summary

Home Inns & Hotels Management Inc. (Nasdaq: HMIN) said in a statement on Wednesday that the company maintains second quarter revenue guidance between $62.8 million and $65.7 million despite an expected 2-4% decline in revenue per available room during the quarter. The decline comes largely from a 10-15% drop in revenue per available room from the Top Star brand. Home Inns attributes the Top Star letdown to earthquake affected locations, five in Chengdu and Chongqing, and a characteristically lower loyal customer base for the brand. Home Inns' revenue per available room dropped to RMB 140 in the first quarter of 2008, compared to RMB 151 in the first quarter of 2007. Home Inns faced no serious property damage from the May 12 earthquake and expects operational and financial impact to be short lived.

Home Inns believes, based on the current booking data, that the 2008 Olympics will not significantly alter operational and financial performance due to reduced business activities and traffic and travel restrictions.

The economy hotel chain plans to complete 100 new hotels in the first half of 2008, compared to 37 in the year-ago period, and retains its target for 200 new hotels by year end. Home Inns booked a net loss of $7.17 million, including a $2.2 million loss from Top Star, in the first quarter on total revenue of $50.9 million.