The chief operating officer of Home Inns, Jason Zong, has announced the group's strategy of expanding in Northwest China, and has also revealed its new franchise system.

After three years development since its first outlet was opened in 2006 in Xi'an, Home Inns now has more than 50 hotels in Northwest China. The company hopes that by 2011, Home Inns will have over 40 hotels in Xi'an, more than 100 in Northwest China and over 1,000 across China.

The new franchise policy, which basically includes risk and benefit sharing, will link the franchise fee with the hotel's actual operating results. The flexible charging method will align the interests of franchisees and Home Inns more closely and this will lower the risks of franchisees greatly.

Jason Zong said he believed that northwest China has great potential for economy hotels, which can be seen from the achievements Home Inns has made in the past three years. The group hopes the new franchise model would offer more opportunities to investors. Home Inns will gradually adjust the ratio of owned and franchised hotels from the current 7:3 to 6:4.