Report of Foreign Issuer (6-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2016

Commission File Number: 001-33082

HOMEINNS HOTEL GROUP

No. 124 Caobao Road

Xuhui District, Shanghai 200235

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	HOMEINNS HOTEL GROUP

	By:	/s/ Cathy Xiangrong Li
	Name:	Cathy Xiangrong Li
	Title:	Chief Financial Officer

Date: March 17, 2016

Exhibit Index

Exhibit 99.1 – Press Release

Exhibit 99.1

Homeinns Hotel Group Reports Fourth Quarter and Full Year 2015 Financial Results

2,922 Hotels in Operation in 355 Cities across China

Shanghai, March 16, 2016 – Homeinns Hotel Group (NASDAQ: HMIN) (“Homeinns” or “the Company”), a leading economy hotel chain in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2015.

Fourth Quarter and Full Year 2015 Highlights

Total revenues increased 2.6% year over year to RMB 1,677.4 million (US$258.9 million) for the fourth quarter of 2015. For the full year 2015, total revenues decreased 0.2% year over year to RMB 6,671.1 million (US$1,029.8 million).

Net loss attributable to ordinary shareholders was RMB 13.1 million (US$2.0 million) for the fourth quarter of 2015, compared with net income attributable to ordinary shareholders of RMB 84.6 million for the fourth quarter of 2014. For the full year 2015, net income attributable to ordinary shareholders was RMB 167.0 million (US$25.8 million), compared with net income attributable to ordinary shareholders of RMB 513.1 million for the full year 2014.

Adjusted net income attributable to ordinary shareholders (non-GAAP) decreased 44.6% year over year to RMB 61.5 million (US$9.5 million) for the fourth quarter of 2015. For the full year 2015, adjusted net income attributable to ordinary shareholders (non-GAAP) decreased 30.2% year over year to RMB 373.9 million (US$57.7 million).

EBITDA (non-GAAP) decreased 28.3% year over year to RMB 239.7 million (US$37.0 million) for the fourth quarter of 2015. For the full year 2015, EBITDA (non-GAAP) decreased 24.7% year over year to RMB 1,168.8 million (US$180.4 million).

Adjusted EBITDA (non-GAAP) decreased 12.9% year over year to RMB 314.2 million (US$48.5 million) for the fourth quarter of 2015. For the full year 2015, adjusted EBITDA (non-GAAP) decreased 12.7% year over year to RMB 1,375.7 million (US$212.4 million).

Net operating cash inflow decreased 37.9% year over year to RMB 216.2 million (US$33.4 million) for the fourth quarter of 2015 and decreased 16.2% year over year to RMB 1,127.8 million (US$174.1 million) for the full year 2015.

As of December 31, 2015, Homeinns operated 2,922 hotels in 355 cities across China, with a net addition of 135 hotels during the fourth quarter and 313 hotels during the full year 2015.

Hotel Development

	Hotels in Operations and Pipeline
	Group		Homeinn		Motel		Fairy- land		Yitel		Homeinn Plus		Superior*		Ripple*		Pebble Motel*		Comma**
Total Number of Hotels		2,922		2,341		422		29		68		53		1		2		4		2
Leased-and-Operated		929		680		162		21		29		35		0		0		0		2
Franchised-and-Managed		1,987		1,661		260		8		39		18		0		1		0		0
Franchised		6		0		0		0		0		0		1		1		4		0

Contracted or under Construction		171		95		22		2		21		20		0		0		0		11
Leased-and-Operated		33		4		2		0		8		8		0		0		0		11
Franchised-and-Managed		138		91		20		2		13		12		0		0		0		0
Under Due Diligence		165		129		10		0		10		9		0		1		3		3

* Superior, Ripple and Pebble Motel are new hotel brands launched during the fourth quarter of 2015.

**Comma is an apartment product launched during the fourth quarter of 2015.

	Openings				Closures*
	4Q2015		FY2015		4Q2015		FY2015
Total Number of Hotels		170		431		35		118
Leased-and-Operated		32		62		20		47
Franchised-and-Managed		132		363		15		71
Franchised		6		6		0		0

* Among these closures, 11 leased-and-operated hotels were closed due to conversion to our other brands, and one leased-and-operated hotel was closed and converted to a franchised-and-managed hotel during the fourth quarter of 2015. 26 leased-and-operated hotels were closed to convert to our other brands, and 3 leased-and-operated hotels were closed and converted to franchised-and-managed hotels during the full year 2015.

Operating Metrics

	Total Hotels
	4Q2015			3Q2015			4Q2014			FY2015			FY2014
Occupancy Rate		83.1	%		86.6	%		79.6	%		83.2	%		83.6	%
Average Daily Rate (ADR, RMB)		159			171			163			162			165
Revenue per Available Room (RevPAR, RMB)		132			148			130			134			138

	Hotels Opened for at least 18 Months
	4Q2015			4Q2014			FY2015			FY2014
Occupancy Rate		84.0	%		81.3	%		84.5	%		85.3	%
Average Daily Rate (ADR, RMB)		157			161			161			165
Revenue per Available Room (RevPAR, RMB)		132			131			136			141

For the fourth quarter of 2015, occupancy rate increased by 3.5 percentage points while ADR decreased by 2.5% compared with the fourth quarter of 2014, resulting in an increase of 1.5% in RevPAR. For the full year 2015, occupancy rate decreased by 0.4 percentage points while ADR decreased by 1.8% compared with the full year 2014, resulting in a decrease of 2.9% in RevPAR.

As of December 31, 2015, a total of 2,257 hotels had been in operation for at least 18 months. During the fourth quarter of 2015, occupancy rate of these hotels increased year over year from 81.3% to 84.0%, and ADR decreased year over year from RMB 161 to RMB 157, resulting in an increase in RevPAR by 0.8% from RMB 131 to RMB 132. For the full year 2015, occupancy rate of these hotels decreased year over year from 85.3% to 84.5%, and ADR decreased year over year from RMB 165 to RMB 161, resulting in a decrease in RevPAR by 3.5% from RMB 141 to RMB 136.

Homeinns Hotel Group had a total of 53.9 million unique non-corporate members under its frequent guests program as of December 31, 2015.

Financial Results for Fourth Quarter and Full Year 2015

Revenues

(RMB/USD in Millions)	4Q2015				4Q2014					FY2015				FY2014
	RMB		USD		RMB		V%			RMB		USD		RMB		V%
Leased-and-Operated Hotels		1,402.3		216.5		1,391.1		0.8	%		5,631.2		869.3		5,741.8		-1.9	%
Franchised-and-Managed Hotels		275.2		42.5		244.2		12.7	%		1,039.9		160.5		940.9		10.5	%
Total Revenues		1,677.4		258.9		1,635.3		2.6	%		6,671.1		1,029.8		6,682.7		-0.2	%
Less: Business Taxes		-99.7		-15.4		-100.3		-0.6	%		-395.4		-61.0		-411.1		-3.8	%
Net Revenues		1,577.7		243.6		1,535.0		2.8	%		6,275.7		968.8		6,271.6		0.1	%

Note: “V%” represents year-over-year percentage change in amounts

For the fourth quarter of 2015, revenues from leased-and-operated hotels increased 0.8% year over year to RMB 1.40 billion (US$216.5 million). The year-over-year increase in revenues from leased-and-operated hotels in the fourth quarter of 2015 was mainly due to an increase in RevPAR. Revenues from franchised-and-managed hotels increased 12.7% year over year to RMB 275.2 million (US$42.5 million) for the fourth quarter of 2015. The year-over-year increase in revenues from franchised-and-managed hotels in the fourth quarter of 2015 was mainly driven by an increase in the number of hotels and hotel rooms in operation.

For the full year 2015, revenues from leased-and-operated hotels decreased 1.9% year over year to RMB 5.63 billion (US$869.3 million). The year-over-year decrease in revenues from leased-and-operated hotels in the full year 2015 was mainly due to a decrease in RevPAR. Revenues from franchised-and-managed hotels increased 10.5% year over year to RMB 1.04 billion (US$160.5 million) for the full year of 2015. The year-over-year increase in revenues from franchised-and-managed hotels was mainly driven by an increase in the number of hotels and hotel rooms in operation, although partially offset by a decrease in RevPAR.

Total Operating Costs and Expenses / Income from Operations

(RMB/USD in Millions)	Fourth Quarter 2015
								Adjusted
	GAAP Results							Non-GAAP Results*
	RMB		USD		Vpts			RMB		USD		Vpts
Leased-and-Operated Hotel Costs		1,352.7		208.8		1.2	pts		1,349.6		208.3		1.3	pts
Personnel Costs of Franchised-and-Managed Hotels		35.7		5.5		0.0	pts		31.8		4.9		0.0	pts
Sales and Marketing Expenses		41.3		6.4		1.1	pts		41.2		6.4		1.1	pts
General and Administrative Expenses		122.7		18.9		2.6	pts		68.5		10.6		0.3	pts
Total Operating Costs and Expenses		1,552.3		239.6		4.9	pts		1,491.1		230.2		2.7	pts
Income from Operations		19.9		3.1		-5.1	pts		81.0		12.5		-2.8	pts

	Full Year 2015
								Adjusted
	GAAP Results							Non-GAAP Results*
	RMB		USD		Vpts			RMB		USD		Vpts
Leased-and-Operated Hotel Costs		5,211.7		804.5		3.0	pts		5,199.9		802.7		3.0	pts
Personnel Costs of Franchised-and-Managed Hotels		228.2		35.2		0.4	pts		214.8		33.2		0.4	pts
Sales and Marketing Expenses		115.1		17.8		0.1	pts		114.4		17.7		0.1	pts
General and Administrative Expenses		362.0		55.9		0.8	pts		258.3		39.9		0.2	pts
Total Operating Costs and Expenses		5,917.0		913.4		4.2	pts		5,787.5		893.4		3.7	pts
Income from Operations		350.7		54.1		-4.3	pts		480.3		74.1		-3.8	pts

*Adjusted Non-GAAP results exclude share-based compensation expenses, integration costs, and expenses related to going-private activities.

Note: “Vpts” represents year-over-year change in percentage points of total revenues

For the fourth quarter of 2015, total operating costs and expenses were RMB 1.55 billion (US$239.6 million), representing 92.5% of total revenues. Total operating costs and expenses excluding any share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the fourth quarter of 2015 were 88.9% of total revenues, compared to 86.2% in the same period a year ago.

For the full year 2015, total operating costs and expenses were RMB 5.92 billion (US$913.4 million), representing 88.7% of total revenues. Total operating costs and expenses excluding any share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the full year 2015 were 86.8% of total revenues, compared to 83.1% in the same period a year ago.

Total leased-and-operated hotel costs were RMB 1.35 billion (US$208.8 million) for the fourth quarter of 2015, representing 96.5% of the leased-and-operated hotel revenues, compared to 93.3% in the same period a year ago. Total leased-and-operated hotel costs excluding any share-based compensation expenses and integration costs (non-GAAP) were 96.2% of the leased-and-operated hotel revenues in the fourth quarter of 2015, compared to 93.1% in the same period a year ago. The year-over-year increase in total leased-and-operated hotel costs as a percentage of leased-and-operated hotel revenues for the fourth quarter of 2015 was mainly due to the higher rental and depreciation cost from our having a higher proportion of midscale hotels and to the higher depreciation cost from economy hotel upgrading.

Total leased-and-operated hotel costs were RMB 5.21 billion (US$804.5 million) for the full year 2015, representing 92.5% of the leased-and-operated hotel revenues, compared to 87.5% in 2014. Total leased-and-operated hotel costs excluding any share-based compensation expenses and integration costs (non-GAAP) were 92.3% of the leased-and-operated hotel revenues in the full year 2015, compared to 87.2% in 2014. The year-over-year increase in total leased-and-operated hotel costs as a percentage of leased-and-operated hotel revenues for the full year 2015 was mainly due to increased rental and depreciation costs and a decrease in RevPAR which resulted in a lower revenue base per hotel while a significant portion of the hotel costs was fixed.

Pre-opening cost was RMB 22.5 million (US$3.5 million) for the fourth quarter of 2015, compared to RMB 18.5 million in the fourth quarter of 2014. For the full year 2015, pre-opening cost was RMB 77.4 million (US$11.9 million), compared to RMB 44.6 million in 2014.

Personnel costs of franchised-and-managed hotels were RMB 35.7 million (US$5.5 million) for the fourth quarter of 2015, representing 13.0% of the franchised-and-managed hotel revenues, compared to 14.0% in the same period a year ago. Franchised-and-managed hotels personnel costs excluding share-based compensation expenses (non-GAAP) were 11.6% of franchised-and-managed hotel revenues in the fourth quarter of 2015, compared to 12.6% in the same period of 2014. The year-over-year decrease in personnel costs of franchised-and-managed hotels as a percentage of franchised-and-managed hotel revenues for the fourth quarter of 2015 was mainly due to the lower year-end bonuses.

Personnel costs of franchised-and-managed hotels were RMB 228.2 million (US$35.2 million) for the full year 2015, representing 21.9% of the franchised-and-managed hotel revenues, compared to 21.4% in 2014. Franchised-and-managed hotels personnel costs excluding share-based compensation expenses (non-GAAP) were 20.7% of franchised-and-managed hotel revenues in the full year 2015, compared to 20.0% in 2014. The year-over-year increase in personnel costs of franchised-and-managed hotels as a percentage of franchised-and-managed hotel revenues for the full year 2015 was mainly due to a lower revenue base per hotel.

Sales and marketing expenses were RMB 41.3 million (US$6.4 million) for the fourth quarter of 2015, representing 2.5% of total revenues, compared to 1.4% in the same period a year ago. Sales and marketing expenses excluding share-based compensation expenses (non-GAAP) were 2.5% of total revenues for the fourth quarter of 2015, compared to 1.4% in the same period of 2014. The year-over-year increase in sales and marketing expenses as a percentage of total revenues for the fourth quarter of 2015 was mainly due to the increased cost related to membership loyalty program.

Sales and marketing expenses were RMB 115.1 million (US$17.8 million) for the full year 2015, representing 1.7% of total revenues, compared to 1.6% in 2014. Sales and marketing expenses excluding share-based compensation expenses (non-GAAP) were 1.7% of total revenues for the full year 2015, compared to 1.6% in 2014.

General and administrative expenses were RMB 122.7 million (US$18.9 million) for the fourth quarter of 2015, representing 7.3% of total revenues, compared to 4.7% in the same period a year ago. General and administrative expenses excluding share-based compensation expenses, integration costs, and expenses related to going-private activities (non-GAAP) were 4.1% of total revenues for the fourth quarter of 2015, compared to 3.7% in the same period of 2014. The year-over-year increase in general and administrative expenses as a percentage of total revenues for the fourth quarter of 2015 was mainly due to increased staff cost for new product development.

General and administrative expenses were RMB 362.0 million (US$55.9 million) for the full year 2015, representing 5.4% of total revenues, compared to 4.7% in 2014. General and administrative expenses excluding share-based compensation expenses, integration costs, acquisition expenses, and expenses related to going-private activities (non-GAAP) were 3.9% of total revenues for the full year 2015, compared to 3.7% in 2014. The year-over-year increase in general and administrative expenses as a percentage of total revenues for the full year 2015 was mainly due to a bad debt provision related to a specific hotel project.

Income from Operations was RMB 19.9 million (US$3.1 million) for the fourth quarter of 2015 compared to RMB 102.5 million in the same period a year ago. Income from operations excluding share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the fourth quarter of 2015 was RMB 81.0 million (US$12.5 million), or 4.8% of total revenues, compared to RMB 125.6 million, or 7.7% of total revenues, in the same period of 2014.

For the full year of 2015, income from operations was RMB 350.7 million (US$54.1 million) compared to RMB 640.6 million in 2014. Income from operations excluding share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the full year 2015 was RMB 480.3 million (US$74.1 million), or 7.2% of total revenues, compared to RMB 736.3 million, or 11.0% of total revenues, in 2014.

EBITDA (non-GAAP)

(RMB/USD in Millions)	Fourth Quarter 2015										Fourth Quarter 2014
	RMB		USD		%Rev			V%			RMB		USD		%Rev
EBITDA (Non-GAAP)		239.7		37.0		14.3	%		-28.3	%		334.3		51.6		20.4	%
Foreign Exchange Loss/(Gain), Net		5.9		0.9		0.4	%					-4.6		-0.7		-0.3	%
Share-Based Compensation		17.7		2.7		1.1	%					21.3		3.3		1.3	%
Expenses Related to Going-Private Activities		41.9		6.5		2.5	%					-		-		-
Integration Costs		1.6		0.3		0.1	%					1.8		0.3		0.1	%
Loss on Change in Fair Value of Convertible Notes		7.5		1.2		0.4	%					7.9		1.2		0.5	%
Adjusted EBITDA (Non-GAAP)		314.2		48.5		18.7	%		-12.9	%		360.7		55.7		22.1	%

	Full Year 2015										Full Year 2014
	RMB		USD		%Rev			V%			RMB		USD		%Rev
EBITDA (Non-GAAP)		1,168.8		180.4		17.5	%		-24.7	%		1,553.1		239.8		23.2	%
Foreign Exchange Loss, Net		41.0		6.3		0.6	%					11.5		1.8		0.2	%
Share-Based Compensation		76.4		11.8		1.1	%					87.7		13.5		1.3	%
Acquisition Expenses		-		-		-						0.7		0.1		0.0	%
Expenses Related to Going-Private Activities		46.7		7.2		0.7	%					-		-		-
Integration Costs		6.4		1.0		0.1	%					7.3		1.1		0.1	%
Gain on Waived Liability Related with Motel Acquisition		-		-		-						-11.9		-1.8		-0.2	%
Loss/(Gain) on Buy-Back of Convertible Notes		1.7		0.3		0.0	%					-0.7		-0.1		0.0	%
Loss/(Gain) on Change in Fair Value of Convertible Notes		34.6		5.3		0.5	%					-71.9		-11.1		-1.1	%
Adjusted EBITDA (Non-GAAP)		1,375.7		212.4		20.6	%		-12.7	%		1,575.7		243.3		23.6	%

Note:

“%Rev” represents amount as a percentage of total revenues

“V%” represents year-over-year percentage change in amounts

Net Income Attributable to Ordinary Shareholders

(RMB/USD in Millions)	Fourth Quarter 2015										Fourth Quarter 2014
	RMB		USD		%Rev			V%			RMB		USD		%Rev
Net Income Attributable to Ordinary Shareholders (GAAP)		-13.1		-2.0		-0.8	%		-115.4	%		84.6		13.1		5.2	%
Foreign Exchange Loss/(Gain), Net		5.9		0.9		0.4	%					-4.6		-0.7		-0.3	%
Share-Based Compensation		17.7		2.7		1.1	%					21.3		3.3		1.3	%
Expenses Related to Going-Private Activities		41.9		6.5		2.5	%					-		-		-
Integration Costs		1.6		0.3		0.1	%					1.8		0.3		0.1	%
Loss/(Gain) on Change in Fair Value of Convertible Notes		7.5		1.2		0.4	%					7.9		1.2		0.5	%
Adjusted net income attributable to ordinary shareholders (Non-GAAP)		61.5		9.5		3.7	%		-44.6	%		110.9		17.1		6.8	%

	Full Year 2015										Full Year 2014
	RMB		USD		%Rev			V%			RMB		USD		%Rev
Net Income Attributable to Ordinary Shareholders (GAAP)		167.0		25.8		2.5	%		-67.4	%		513.1		79.2		7.7	%
Foreign Exchange Loss, Net		41.0		6.3		0.6	%					11.5		1.8		0.2	%
Share-Based Compensation		76.4		11.8		1.1	%					87.7		13.5		1.3	%
Acquisition Expenses		-		-		-						0.7		0.1		0.0	%
Expenses Related to Going-Private Activities		46.7		7.2		0.7	%					-		-		-
Integration Costs		6.4		1.0		0.1	%					7.3		1.1		0.1	%
Gain on Waived Liability Related with Motel Acquisition		-		-		-						-11.9		-1.8		-0.2	%
Loss/(Gain) on Buy-Back of Convertible Notes		1.7		0.3		0.0	%					-0.7		-0.1		0.0	%
Loss/(Gain) on Change in Fair Value of Convertible Notes		34.6		5.3		0.5	%					-71.9		-11.1		-1.1	%
Adjusted net income attributable to ordinary shareholders (Non-GAAP)		373.9		57.7		5.6	%		-30.2	%		535.8		82.7		8.0	%

Note:

“%Rev” represents amount as a percentage of total revenues

“V%” represents year-over-year percentage change in amounts

Adjusted Net Income Attributable to Ordinary Shareholders (Non–GAAP) decreased year over year by 44.6% to RMB 61.5 million (US$9.5 million) for the fourth quarter 2015, representing 3.7% of total revenues compared to 6.8% in the same period a year ago. For the full year 2015, adjusted net income attributable to ordinary shareholders (Non–GAAP) decreased year over year by 30.2% to RMB 373.9 million (US$57.7 million), representing 5.6% of total revenues compared to 8.0% in 2014. The year-over-year decreases in adjusted net margins (non-GAAP)¹ for both the quarter and full year were mainly due to the decreases in adjusted income from operations margin (non-GAAP)².

¹“Adjusted net margin rate (non-GAAP)” is defined as adjusted net income (non-GAAP) as a percentage of total revenues.

²“Adjusted income from operations margin rate (non-GAAP)” is defined as income from operations excluding share-based compensation expenses, integration costs, acquisition expenses, and expenses related to going-private activities (non-GAAP) as a percentage of total revenues.

Basic and Diluted Earnings Per Share / Earnings Per ADS

	Fourth Quarter 2015								Full Year 2015
	Ordinary Share				ADS Share				Ordinary Share				ADS Share
	RMB		USD		RMB		USD		RMB		USD		RMB		USD
Basic		-0.14		-0.02		-0.28		-0.04		1.74		0.27		3.48		0.54
Diluted		-0.14		-0.02		-0.28		-0.04		1.74		0.27		3.48		0.54

Adjusted Basic (Non-GAAP)		0.64		0.10		1.28		0.20		3.89		0.60		7.78		1.20
Adjusted Diluted (Non-GAAP)		0.64		0.10		1.28		0.20		3.83		0.59		7.66		1.18

Cash Flow

For the fourth quarter of 2015, net operating cash inflow was RMB 216.2 million (US$33.4 million), compared to RMB 348.1 million in the same period of 2014. Capitalized expenditures for the fourth quarter of 2015 were RMB 284.5 million (US$43.9 million), while related cash paid for capital expenditures during the quarter was RMB 151.8 million (US$23.4 million).

For the full year 2015, net operating cash inflow was RMB 1.13 billion (US$174.1 million), compared to RMB 1.35 billion in 2014. Capitalized expenditures for the full year 2015 were RMB 727.4 million (US$112.3 million), while related cash paid for capital expenditures during the year was RMB 619.4 million (US$95.6 million).

Balance Sheet

As of December 31, 2015, Homeinns Hotel Group had cash and cash equivalents of RMB 1,093.7 million (US$168.8 million). The convertible notes issued in December 2010 were fully repaid in December 2015.

Upcoming HMIN Extraordinary General Meeting

The Company has scheduled an extraordinary general meeting to be held on March 25, 2016, at 10:00 a.m. Shanghai time, at the executive offices of the Company, located at 124 Cao Bao Road, Shanghai, 200235, People’s Republic of China. The extraordinary general meeting is being convened to consider and vote on, among other matters, the proposal to authorize and approve the previously announced agreement and plan of merger dated as of December 6, 2015, among (i) the Company, (ii) BTG Hotels Group (HONGKONG) Holdings Co., Limited (“Holdco”), a wholly owned subsidiary of BTG Hotels (Group) Co., Ltd., a PRC joint stock company that is listed on the Shanghai Stock Exchange (“BTG Hotels”), (iii) BTG Hotels Group (CAYMAN) Holding Co., Ltd (“Merger Sub”), a wholly owned subsidiary of Holdco, and (iv) solely for the purposes of certain sections thereof, BTG Hotels. Subject to the approval of the extraordinary general meeting, Merger Sub will be merged with and into the Company pursuant to the agreement and plan of merger, with the Company continuing as the surviving company. A related transaction statement on Schedule 13E-3 and a proxy statement with respect thereto were filed with the SEC on February 23, 2016. Investors, shareholders and ADS holders of the Company are urged to read carefully and in their entirety these and other materials filed with or furnished to the SEC when they become available, as they contain important information about the Company, the proposed merger and related matters. The proxy statement was mailed to the Company’s ADS holders on or about February 26, 2016 and to the Company’s shareholders on or about March 4, 2016. The Special Committee of the Board comprised of independent directors reviewed the transaction and recommends that stockholders approve the transaction.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.4778 to US$1.00, the noon buying rate for December 31, 2015 set forth in the H.10 statistical release of the Federal Reserve Board.

About Homeinns Hotel Group

Homeinns Hotel Group is a leading economy hotel chain in China based on number of hotels and hotel rooms as well as geographic coverage of the hotel chain. Since the Company commenced operations in 2002, it has built Homeinn as one of the best-known economy hotel brands in China. In October of 2011, the Company acquired Motel 168, another well-known hotel chain in China, as its second economy hotel brand. Homeinns Hotel Group aims to offer a consistent product and high-quality services to primarily serve the fast growing population of value-conscious individual business and leisure travelers who demand clean, comfortable and convenient lodging. Homeinns Hotel Group's ADSs, each of which represents two ordinary shares, are currently trading on the NASDAQ Global Select Market under the symbol "HMIN." For more information about Homeinns Hotel Group, please visit http://english.homeinns.com.

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Any statements in this press release that are not historical facts are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract customers and leverage our brands; trends and competition in the lodging industry; the expected growth of the lodging market in China; and other factors and risks detailed in our filings with the Securities and Exchange Commission. This press release also contains statements or projections that are based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by us to be accurate, nor does it purport to be complete. We undertake no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Non-GAAP Financial Measures

To supplement Homeinns Hotel Group’s unaudited consolidated financial results presented in accordance with U.S. GAAP, Homeinns Hotel Group uses the following non-GAAP measures:

(a)

total operating costs and expenses excluding share-based compensation expenses and acquisition and integration costs and expenses related to going-private activities

(b)

total leased-and-operated hotel costs excluding share-based compensation expenses and integration costs

(c)

personnel costs of franchised-and-managed hotels excluding share-based compensation expenses

(d)

sales and marketing expenses excluding share-based compensation expenses

(e)

general and administrative expenses excluding share-based compensation expenses and acquisition and integration costs and expenses related to going-private activities

(f)

income from operations excluding share-based compensation expenses and acquisition and integration costs and expenses related to going-private activities

(g)

adjusted net income attributable to shareholders excluding any share-based compensation expenses, foreign exchange gain or loss, acquisition and integration cost, upfront fee amortization of term loan, gain or loss from fair value change of convertible notes and interest swap derivatives and other non-operating expenses and expenses related to going-private activities

(h)

adjusted basic and diluted earnings per ADS and per share excluding foreign exchange gain or loss, share-based compensation expenses, gain on buy-back of convertible bonds, issuance costs for convertible notes, gain or loss from fair value change of convertible notes, acquisition and integration cost, non-operating expenses and upfront fee amortization of term loan, and expenses related to going-private activities

(i)

adjusted EBITDA excluding foreign exchange gain or loss, share-based compensation expenses, gain on buy-back of convertible bonds, issuance costs for convertible notes, gain or loss from fair value change of convertible notes, acquisition and integration costs, non-operating expenses and upfront fee amortization of term loan and expenses related to going-private activities

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.

Homeinns Hotel Group believes that, used in conjunction with GAAP financial measures, these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance, and both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. Management believes that EBITDA, defined as earnings before interest, income tax expense, depreciation and amortization, is a useful financial metric to assess Homeinns Hotel Group’s operating and financial performance before the impact of investing and financing transactions and income taxes. In addition, management believes that EBITDA is widely used by other companies in the lodging industry and may be used as an analysis tool by both management and investors to measure and compare Homeinns Hotel Group’s operational and financial performance with industry peers.

One of the limitations of using non-GAAP income from operations, EBITDA, adjusted EBITDA and non-GAAP net income attributable to shareholders is that they do not include all items that impact Homeinns Hotel Group’s net income (loss) for the period. These non-GAAP measures exclude share-based compensation expenses, foreign exchange gain or loss and gain or loss from fair value change of convertible notes, which have been and will continue to be a significant recurring expense in Homeinns Hotel Group’s business. In addition, Homeinns Hotel Group’s EBITDA and adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as Homeinns Hotel Group does. Management compensates for this and other limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. Homeinns Hotel Group computes the non-GAAP financial measures using the same consistent method from quarter to quarter. Reconciliations of GAAP and non-GAAP results are included at the end of this press release. The non-GAAP adjustment items do not include the tax impact.

The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that Homeinns Hotel Group’s future results will be unaffected by other charges and gains Homeinns Hotel Group considers to be outside the ordinary course of its business.

Homeinns Hotel Group completed its acquisition of 100% equity interest in Motel 168, or Motel, and took control of Motel effective on October 1, 2011. Homeinns Hotel Group had consolidated Motel’s operating and financial results since October 1, 2011. By the third quarter of 2013, Homeinns Hotel Group had substantially completed Motel’s integration and ceased to present separate operating metrics and revenues for Motel.

For investor and media inquiries, please contact:

Mingjia Ding

Homeinns Hotel Group

Tel: +86-21-3337-3333*3870

Email: mjding@homeinns.com

Cara O’Brien

FTI Consulting

Tel: +852-3768-4537

Email: cara.obrien@fticonsulting.com

Homeinns Hotel Group

Unaudited Condensed Consolidated Balance Sheet

	December 31, 2014		December 31, 2015
	RMB '000		RMB '000			US$ '000

ASSETS
Current assets:
Cash and cash equivalents		949,690		1,093,695			168,837
Restricted cash		12,726		11,522			1,779
Accounts receivable, net		95,501		106,122			16,382
Receivables from related parties		3,476		3,469			536
Consumables		44,446		51,032			7,878
Prepayments and other current assets		171,703		246,544			38,060
Deferred tax assets		129,685		131,166			20,249

Total current assets		1,407,227		1,643,550			253,721

Investment		11,709		14,682			2,267
Property and equipment, net		4,000,041		3,831,431			591,471
Goodwill		2,323,241		2,326,289			359,117
Intangible assets, net		1,126,636		1,079,616			166,664
Other assets		90,995		109,161			16,852
Non-current deferred tax assets		434,847		487,596			75,272

Total assets		9,394,696		9,492,325			1,465,364

LIABILITIES
Current liabilities:
Accounts payable		86,949		103,382			15,959
Notes payable		-		4,496			694
Payables to related parties		4,166		15,697			2,423
Financial liability, current portion²		1,029,577		-			-
Short-term loans		-		424,680			65,559
Salaries and welfare payable		228,127		211,487			32,648
Income tax payable		117,830		116,340			17,960
Other taxes payable		34,074		48,188			7,439
Deferred revenues		225,417		216,123			33,364
Long-term loans, current portion		-		50,000			7,719
Other unpaid and accruals		255,460		305,481			47,160
Other payables		742,853		854,521			131,915
Deferred tax liability		60,764		46,949			7,248

Total current liabilities		2,785,217		2,397,344			370,088

Long term loans				100,000			15,437
Deferred rental		705,284		695,008			107,291
Deferred revenues		51,289		46,349			7,155
Deposits due to franchisees		144,892		155,402			23,990
Other long term payables		13,018		5,314			820
Unfavorable lease liabilities		331,282		294,944			45,532
Deferred tax liabilities		292,575		287,817			44,431

Total liabilities		4,323,557		3,982,178			614,744

Commitments and contingencies

Shareholders’ equity
Ordinary shares (US$0.005 par value; 200,000,000 shares authorized, 95,703,960 and 97,535,374 shares issued and outstanding as of December 31, 2014 and December 31, 2015, respectively)		3,698		3,757			580

Additional paid-in capital		3,191,076		3,403,361			525,388
Statutory reserves		256,013		286,369			44,208

Retained earnings		1,604,246		1,740,929			268,753

Less: Treasury stock (0 and 37,696 shares as of December 31, 2014 and December 31, 2015, respectively)		-		(2,759	)		(426	)

Total Home Inns shareholders' equity		5,055,033		5,431,657			838,503

Noncontrolling interests		16,106		78,490			12,117

Total shareholders’ equity		5,071,139		5,510,147			850,620

Total liabilities and shareholders’ equity		9,394,696		9,492,325			1,465,364

Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.4778 on December 31, 2015, representing the certificated exchange rate published by the Federal Reserve Board.

Note 2: Financial liabilities represent convertible notes measured at fair value.

Homeinns Hotel Group

Unaudited Condensed Consolidated Statement of Operations

	Quarter Ended												Year Ended
	December 31, 2014			September 30, 2015			December 31, 2015						December 31, 2014			December 31, 2015
	RMB '000			96,238			RMB '000			US$ '000			RMB '000			RMB '000			US$ '000

Revenues:
Leased-and-operated hotels		1,391,084			1,573,685			1,402,267			216,473			5,741,804			5,631,242			869,314
Franchised-and-managed hotels		244,219			282,257			275,152			42,476			940,944			1,039,871			160,528

Total revenues		1,635,303			1,855,942			1,677,419			258,949			6,682,748			6,671,113			1,029,842
Less: Business tax and related surcharges		(100,323	)		(108,934	)		(99,720	)		(15,394	)		(411,118	)		(395,394	)		(61,038	)

Net revenues		1,534,980			1,747,008			1,577,699			243,555			6,271,630			6,275,719			968,804

Operating costs and expenses:
Leased-and-operated hotel costs –
Rents and utilities		(564,347	)		(554,722	)		(578,745	)		(89,343	)		(2,172,804	)		(2,239,521	)		(345,722	)
Personnel costs		(256,033	)		(293,685	)		(262,696	)		(40,553	)		(1,075,222	)		(1,107,260	)		(170,931	)
Depreciation and amortization		(187,816	)		(200,365	)		(202,325	)		(31,234	)		(742,886	)		(792,930	)		(122,407	)
Consumables, food and beverage		(97,864	)		(120,355	)		(113,233	)		(17,480	)		(362,760	)		(409,001	)		(63,139	)
Others		(192,474	)		(169,037	)		(195,657	)		(30,204	)		(669,441	)		(662,946	)		(102,341	)

Total leased-and-operated hotel costs		(1,298,534	)		(1,338,164	)		(1,352,656	)		(208,814	)		(5,023,113	)		(5,211,658	)		(804,540	)

Personnel costs of Franchised-and-managed hotels		(34,280	)		(82,570	)		(35,670	)		(5,506	)		(201,244	)		(228,219	)		(35,231	)
Sales and marketing expenses		(22,700	)		(25,626	)		(41,337	)		(6,381	)		(109,813	)		(115,075	)		(17,765	)
General and administrative expenses		(77,426	)		(82,733	)		(122,656	)		(18,935	)		(312,008	)		(362,041	)		(55,889	)

Total operating costs and expenses		(1,432,940	)		(1,529,093	)		(1,552,319	)		(239,636	)		(5,646,178	)		(5,916,993	)		(913,425	)

Other income/(loss)		448			(4,165	)		(5,529	)		(854	)		15,193			(7,995	)		(1,234	)

Income from operations		102,488			213,750			19,851			3,065			640,645			350,731			54,145

Interest income		3,777			6,610			4,243			655			9,295			19,248			2,971
Interest expenses		(5,674	)		(5,303	)		(5,850	)		(903	)		(41,759	)		(22,276	)		(3,439	)
Loss from equity investment		(193	)		(163	)		(405	)		(63	)		(324	)		(1,587	)		(245	)
(Loss)/gain on change in fair value of convertible notes		(7,851	)		(570	)		(7,455	)		(1,151	)		71,945			(34,624	)		(5,345	)
Gain/(loss) on buy-back of convertible notes		-			-			-			-			650			(1,682	)		(260	)
Non-operating income		41,400			44,146			26,914			4,155			81,739			81,651			12,605
Foreign exchange gain/(loss), net		4,606			(35,012	)		(5,876	)		(907	)		(11,500	)		(41,034	)		(6,335	)

Income before income tax expenses and noncontrolling interests		138,553			223,458			31,422			4,851			750,691			350,427			54,097

Income tax expense		(53,064	)		(74,270	)		(43,722	)		(6,750	)		(231,323	)		(177,741	)		(27,438	)

Net income/(loss)		85,489			149,188			(12,300	)		(1,899	)		519,368			172,686			26,659

Less:Net income attributable to noncontrolling interests		(918	)		(3,590	)		(750	)		(116	)		(6,253	)		(5,643	)		(871	)

Net income/(loss) attributable to ordinary shareholders		84,571			145,598			(13,050	)		(2,015	)		513,115			167,043			25,788

Earnings per share
— Basic		0.88			1.51			(0.14	)		(0.02	)		5.38			1.74			0.27

— Diluted		0.88			1.51			(0.14	)		(0.02	)		4.55			1.74			0.27

Weighted average ordinary shares outstanding
— Basic		95,655			96,347			96,517			96,517			95,345			96,216			96,216

— Diluted		95,655			96,347			96,517			96,517			102,814			96,238			96,238

Share-based compensation expense was included in the statement of operations as follows:
Leased-and-operated hotel costs – Personnel costs		1,856			1,349			1,763			272			7,702			6,638			1,025
Personnel costs of Franchised-and-managed hotels		3,479			2,727			3,822			590			13,152			13,423			2,072
Sales and marketing expenses		179			129			121			19			832			642			99
General and administrative expenses		15,810			13,684			11,949			1,845			66,020			55,736			8,604

Homeinns Hotel Group

Reconciliation of GAAP and Non-GAAP Results

	Quarter Ended December 31, 2015
	GAAP Result			% of Total Revenue			Share-based Compensation		Expenses related to going private activities		Integration cost		% of Total Revenue			Non-GAAP Result			% of Total Revenue
	RMB '000						RMB '000		RMB '000		RMB '000					RMB '000
	(unaudited)						(unaudited)		(unaudited)		(unaudited)					(unaudited)

Leased-and-operated hotel costs		(1,352,656	)		80.6	%		1,763		-		1,316		0.2	%		(1,349,577	)		80.5	%
Personnel costs of Franchised-and-managed hotels		(35,670	)		2.1	%		3,822		-		-		0.2	%		(31,848	)		1.9	%
Sales and marketing expenses		(41,337	)		2.5	%		121		-		-		0.0	%		(41,216	)		2.5	%
General and administrative expenses		(122,656	)		7.3	%		11,949		41,907		317		3.2	%		(68,483	)		4.1	%

Total operating costs and expenses		(1,552,319	)		92.5	%		17,655		-		1,633		3.6	%		(1,491,124	)		88.9	%

Income from operations		19,851			1.2	%		17,655		-		1,633		3.6	%		81,046			4.8	%

	Quarter Ended December 31, 2015
	GAAP Result			% of Total Revenue			Share-based Compensation		Expenses related to going private activities		Integration cost		% of Total Revenue			Non-GAAP Result			% of Total Revenue
	US$ '000						US$ '000		US$ '000		US$ '000					US$ '000
	(unaudited)						(unaudited)		(unaudited)		(unaudited)					(unaudited)

Leased-and-operated hotel costs		(208,814	)		80.6	%		272		-		203		0.2	%		(208,339	)		80.5	%
Personnel costs of Franchised-and-managed hotels		(5,506	)		2.1	%		590		-		-		0.2	%		(4,916	)		1.9	%
Sales and marketing expenses		(6,381	)		2.5	%		19		-		-		0.0	%		(6,362	)		2.5	%
General and administrative expenses		(18,935	)		7.3	%		1,845		6,469		49		3.2	%		(10,572	)		4.1	%

Total operating costs and expenses		(239,636	)		92.5	%		2,726		-		252		3.6	%		(230,189	)		88.9	%

Income from operations		3,065			1.2	%		2,726		-		252		3.6	%		12,512			4.8	%

	Quarter Ended September 30, 2015
	GAAP Result			% of Total Revenue			Share-based Compensation		Expenses related to going private activities		Integration cost		%of Total Revenue			Non-GAAP Result			% of Total Revenue
	RMB '000						RMB '000		RMB '000		RMB '000					RMB '000
	(unaudited)						(unaudited)		(unaudited)		(unaudited)					(unaudited)

Leased-and-operated hotel costs		(1,338,164	)		72.1	%		1,349		-		1,295		0.1	%		(1,335,520	)		72.0	%
Personnel costs of Franchised-and-managed hotels		(82,570	)		4.4	%		2,727		-		-		0.1	%		(79,843	)		4.3	%
Sales and marketing expenses		(25,626	)		1.4	%		129		-		-		0.0	%		(25,497	)		1.4	%
General and administrative expenses		(82,733	)		4.5	%		13,684		4,797		317		1.0	%		(63,935	)		3.4	%

Total operating costs and expenses		(1,529,093	)		82.4	%		17,889		-		1,612		1.3	%		(1,504,795	)		81.1	%

Income from operations		213,750			11.5	%		17,889		-		1,612		1.3	%		238,048			12.8	%

	Quarter Ended December 31, 2014
	GAAP Result			% of Total Revenue			Share-based Compensation		Expenses related to going private activities		Integration cost		% of Total Revenue			Non-GAAP Result			% of Total Revenue
	RMB '000						RMB '000		RMB '000		RMB '000					RMB '000
	(unaudited)						(unaudited)		(unaudited)		(unaudited)					(unaudited)

Leased-and-operated hotel costs		(1,298,534	)		79.4	%		1,856		-		1,478		0.2	%		(1,295,200	)		79.2	%
Personnel costs of Franchised-and-managed hotels		(34,280	)		2.1	%		3,479		-		-		0.2	%		(30,801	)		1.9	%
Sales and marketing expenses		(22,700	)		1.4	%		179		-		-		0.0	%		(22,521	)		1.4	%
General and administrative expenses		(77,426	)		4.7	%		15,810		-		317		1.0	%		(61,299	)		3.7	%

Total operating costs and expenses		(1,432,940	)		87.6	%		21,324		-		1,795		1.4	%		(1,409,821	)		86.2	%

Income from operations		102,488			6.3	%		21,324		-		1,795		1.4	%		125,607			7.7	%

Homeinns Hotel Group

Reconciliation of GAAP and Non-GAAP Results (continued)

	Year Ended December 31, 2015
	GAAP Result			% of Total Revenue			Share-based Compensation		Expenses related to going private activities		Acquisition expenses		Integration cost		% of Total Revenue			Non-GAAP Result			% of Total Revenue
	RMB '000						RMB '000		RMB '000		RMB '000		RMB '000					RMB '000
	(unaudited)						(unaudited)		(unaudited)		(unaudited)		(unaudited)					(unaudited)

Leased-and-operated hotel costs		(5,211,658	)		78.1	%		6,638		-		-		5,112		0.2	%		(5,199,908	)		77.9	%
Personnel costs of Franchised-and-managed hotels		(228,219	)		3.4	%		13,423		-		-		-		0.2	%		(214,796	)		3.2	%
Sales and marketing expenses		(115,075	)		1.7	%		642		-		-		-		0.0	%		(114,433	)		1.7	%
General and administrative expenses		(362,041	)		5.4	%		55,736		46,704		-		1,268		1.6	%		(258,333	)		3.9	%

Total operating costs and expenses		(5,916,993	)		88.7	%		76,439		46,704		-		6,380		1.9	%		(5,787,470	)		86.8	%

Income from operations		350,731			5.3	%		76,439		46,704		-		6,380		1.9	%		480,254			7.2	%

	Year Ended December 31, 2015
	GAAP Result			% of Total Revenue			Share-based Compensation		Expenses related to going private activities		Acquisition expenses		Integration cost		% of Total Revenue			Non-GAAP Result			% of Total Revenue
	US$ '000						US$ '000		US$ '000		US$ '000		US$ '000					US$ '000
	(unaudited)						(unaudited)		(unaudited)		(unaudited)		(unaudited)					(unaudited)

Leased-and-operated hotel costs		(804,541	)		78.1	%		1,025		-		-		789		0.2	%		(802,727	)		77.9	%
Personnel costs of Franchised-and-managed hotels		(35,231	)		3.4	%		2,072		-		-		-		0.2	%		(33,159	)		3.2	%
Sales and marketing expenses		(17,765	)		1.7	%		99		-		-		-		0.0	%		(17,665	)		1.7	%
General and administrative expenses		(55,889	)		5.4	%		8,604		7,210		-		196		1.6	%		(39,880	)		3.9	%

Total operating costs and expenses		(913,426	)		88.7	%		11,800		7,210		-		985		1.9	%		(893,431	)		86.8	%

Income from operations		54,144			5.3	%		11,800		7,210		-		985		1.9	%		74,138			7.2	%

	Year Ended December 31, 2014
	GAAP Result			% of Total Revenue			Share-based Compensation		Expenses related to going private activities		Acquisition expenses		Integration cost		% of Total Revenue			Non-GAAP Result			% of Total Revenue
	RMB '000						RMB '000		RMB '000		RMB '000		RMB '000					RMB '000
	(unaudited)						(unaudited)		(unaudited)		(unaudited)		(unaudited)					(unaudited)

Leased-and-operated hotel costs		(5,023,113	)		75.2	%		7,702		-		-		6,017		0.2	%		(5,009,394	)		75.0	%
Personnel costs of Franchised-and-managed hotels		(201,244	)		3.0	%		13,152		-		-		-		0.2	%		(188,092	)		2.8	%
Sales and marketing expenses		(109,813	)		1.6	%		832		-		-		-		0.0	%		(108,981	)		1.6	%
General and administrative expenses		(312,008	)		4.7	%		66,020		-		691		1,268		1.0	%		(244,029	)		3.7	%

Total operating costs and expenses		(5,646,178	)		84.5	%		87,706		-		691		7,285		1.4	%		(5,550,496	)		83.1	%

Income from operations		640,645			9.6	%		87,706		-		691		7,285		1.4	%		736,327			11.0	%

Homeinns Hotel Group

Reconciliation of GAAP and Non-GAAP Results (continued)

	Quarter Ended											Year Ended
	December 31, 2014			September 30, 2015		December 31, 2015						December 31, 2014			December 31, 2015
	RMB '000			RMB '000		RMB '000			US$ '000			RMB '000			RMB '000		US$ '000
	(unaudited)			(unaudited)		(unaudited)			(unaudited)			(unaudited)			(unaudited)		(unaudited)

Net income/(loss) attributable to ordinary shareholders (GAAP)		84,571			145,598		(13,050	)		(2,015	)		513,115			167,043		25,788
Foreign exchange (gain)/loss, net		(4,606	)		35,012		5,876			907			11,500			41,034		6,335
Share-based compensation		21,324			17,889		17,655			2,726			87,706			76,439		11,800
Acquisition expenses		-			-		-			-			691			-		-
Expenses related to going private activities		-			4,797		41,907			6,469			-			46,704		7,210
Integration cost		1,795			1,612		1,633			252			7,285			6,380		985
Gain on waived liability related with Motel acquisition		-											(11,919	)		-		-
(Gain)/loss on buy-back of convertible notes		-			-		-			-			(650	)		1,682		260
Loss/(gain) on change in fair value of convertible notes		7,851			570		7,455			1,151			(71,945	)		34,624		5,345

Adjusted net income attributable to ordinary shareholders (Non-GAAP)		110,935			205,478		61,476			9,490			535,783			373,906		57,721

	Quarter Ended										Year Ended
	December 31, 2014		September 30, 2015		December 31, 2015						December 31, 2014		December 31, 2015
	RMB '000		RMB '000		RMB '000			US$ '000			RMB '000		RMB '000		US$ '000
	(unaudited)		(unaudited)		(unaudited)			(unaudited)			(unaudited)		(unaudited)		(unaudited)

Earnings per share (GAAP)
— Basic		0.88		1.51		(0.14	)		(0.02	)		5.38		1.74		0.27

— Diluted		0.88		1.51		(0.14	)		(0.02	)		4.55		1.74		0.27

Weighted average ordinary shares outstanding
— Basic		95,655		96,347		96,517			96,517			95,345		96,216		96,216

— Diluted		95,655		96,347		96,517			96,517			102,814		96,238		96,238
Adjusted earnings per share (Non-GAAP)
— Basic		1.16		2.13		0.64			0.10			5.62		3.89		0.60

— Diluted		1.13		2.05		0.64			0.10			5.43		3.83		0.59

Weighted average ordinary shares outstanding
— Basic		95,655		96,347		96,517			96,517			95,345		96,216		96,216

— Diluted		102,704		102,702		96,604			96,604			102,814		102,449		102,449

Note 2: The non-GAAP adjustment items do not include the tax impact.

Homeinns Hotel Group

Reconciliation of GAAP and Non-GAAP Results (continued)

	Quarter Ended												Year Ended
	December 31, 2014			Sept 30, 2015			December 31, 2015						December 31, 2014			December 31, 2015
	RMB '000			RMB '000			RMB '000			US$ '000			RMB '000			RMB '000			US$ '000
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)

Net income/(loss)		85,489			149,188			(12,300	)		(1,899	)		519,368			172,686			26,658
Interest income		(3,777	)		(6,610	)		(4,243	)		(655	)		(9,295	)		(19,248	)		(2,971	)
Interest expenses		5,674			5,303			5,850			903			41,759			22,276			3,439
Income tax expense		53,064			74,270			43,722			6,750			231,323			177,741			27,438
Depreciation and amortization		193,863			206,823			206,667			31,904			769,911			815,381			125,873

EBITDA (Non-GAAP)		334,313			428,974			239,696			37,003			1,553,066			1,168,836			180,437

Foreign exchange loss/(gain), net		(4,606	)		35,012			5,876			907			11,500			41,034			6,335
Share-based compensation		21,324			17,889			17,655			2,726			87,706			76,439			11,800
Acquisition expenses		-			-			-			-			691			-			-
Expenses related to going private activities		-			4,797			41,907			6,469			-			46,704			7,210
Integration cost		1,795			1,612			1,633			252			7,285			6,380			985
Gain on waived liability related with Motel acquisition		-			-			-			-			(11,919	)		-			-
(Gain)/loss on buy-back of convertible notes		-			-			-			-			(650	)		1,682			260
Loss/(gain) on change in fair value of convertible notes		7,851			570			7,455			1,151			(71,945	)		34,624			5,345

Adjusted EBITDA (Non-GAAP)		360,677			488,854			314,222			48,508			1,575,734			1,375,699			212,372

%of total revenue		22.1	%		26.3	%		18.7	%		18.7	%		23.6	%		20.6	%		20.6	%

Note 1: The "Depreciation and amortization expense" includes the depreciation and amortization expenses of the Group. The depreciation and amortization expenses of all leased-and-operated hotels are included in "Operating costs and expenses".

The depreciation and amortization expenses of administrative long-term assets are included in "General and administrative expenses".

Home Inns & Hotels Management Inc.

Operating Data

	As of and for the quarter ended									As of and for the year ended
	December 31, 2014			September 30, 2015			December 31, 2015			December 31, 2014			December 31, 2015
	Group			Group			Group			Group			Group
Total Hotels in operation:		2,609			2,787			2,922			2,609			2,922
Leased-and-operated hotels		914			917			929			914			929
Franchised-and-managed hotels		1,695			1,870			1,993			1,695			1,993

Total rooms		296,075			311,608			321,802			296,075			321,802

Occupancy rate (as a percentage)		79.6	%		86.6	%		83.1	%		83.6	%		83.2	%

Average daily rate (in RMB)		163			171			159			165			162

RevPAR (in RMB)		130			148			132			138			134

Like-for-like performance for hotels opened for at least 18 months at the end of the period

	As of and for the quarter ended						As of and for the year ended
	December 31, 2014			December 31, 2015			December 31, 2014			December 31, 2015
	Group			Group			Group			Group
Total Hotels in operation:		1,899			2,257			1,899			2,257
Leased-and-operated hotels		844			873			844			873
Franchised-and-managed hotels		1,055			1,384			1,055			1,384

Total rooms		221,376			255,319			221,376			255,319

Occupancy rate (as a percentage)		81.3	%		84.0	%		85.3	%		84.5	%

Average daily rate (in RMB)		161			157			165			161

RevPAR (in RMB)		131			132			141			136

“Occupancy rate” refers to the total number of occupied rooms divided by the total number of available rooms in a given period.

“Average daily rate” refers to total hotel room revenues divided by the total number of occupied rooms in a given period.

“RevPAR” represents revenue per available room, which is calculated by dividing total hotel room revenues by the total number of available rooms in a given period, or by multiplying average daily rates and occupancy rates in a given period.

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