Homeinns Hotel Group today announced that its Board of Directors (the "Board") has received a non-binding proposal letter.

Homeinns Hotel Group ("Homeinns" or the "Company") (NASDAQ: HMIN), a leading economy hotel chain in China, today announced that its Board of Directors (the "Board") has received a non-binding proposal letter, dated June 11, 2015, from BTG Hotels (Group) Co., Ltd. ("BTG Hotels"), Poly Victory Investments Limited ("Poly Victory"), Ctrip.com International, Ltd. ("Ctrip"), Mr. Neil Nanpeng Shen ("Mr. Shen"), Co-Founder and Co-Chairman of the Board of the Company, James Jianzhang Liang, Co-Founder and Director of the Company and Chairman of the Board of Directors and Chief Executive Officer of Ctrip ("Mr. Liang"), and David Jian Sun, Chief Executive Officer and Director of the Company ("Mr. Sun," together with BTG Hotels, Poly Victory, Ctrip, Mr. Shen and Mr. Liang, the "Buyer Group"), proposing a "going-private" transaction (the "Transaction") to acquire all of the outstanding ordinary shares of Homeinns not already owned by the Buyer Group for US$32.81 in cash per American depositary share ("ADS"), which represents a premium of 20% to the average closing trading price of the Company's ADSs during the past 20 trading days.

The Buyer Group beneficially owns an aggregate of approximately 35% of all of the Company's issued and outstanding ordinary shares.

According to the proposal letter, the Buyer Group intends to fund the consideration payable in the Transaction with a combination of debt and/or equity capital, and rollover equity in the Company. A copy of the proposal letter is attached as Annex A to this press release.

The Board has formed a special committee comprised of three independent, disinterested directors, Messrs.Kenneth Gaw, Terry Yongmin Hu and Arthur M. Wang. The special committee plans to retain legal and financial advisors to assist it in evaluating the Transaction.

The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.