7Days Inn Prepares to Acquire Motel Chain

7 Days Inn is quite likely to surpass Home Inns in terms of its hotel number as it has accelerated its expansion plan, which makes the leading economy hotel chain in China very nervous. Now they are mired in a seesaw battle of who has the largest number of hotels in the industry. However, it would be easier to prevail over the other if one of them could buy Shanghai Motel Chain, which is now seeking its new owner.

7 Days Inn has begun to conduct a due diligence investigation into Motel Chain through a well-known law firm in China, said a source with knowledge of the matter. Such is its preparation before it decides to launch its acquisition plan.

When reporters wanted confirmation from 7 Days Inn, a senior executive said, We are a listed company and have strict regulations regarding information disclosure. You d better check our press release for further details.

We have always cherished M&A opportunities. But before we do that, we will start an evaluation process of the potential acquisition target in all its operations and make sure that it is worth our bid, said Zheng Nanyan, chief executive officer of 7 Days Inn, when asked whether he intended to buy Motel Chain.