Home Inns & Hotels Management has entered into an agreement to acquire a 100% ownership interest in Motel 168 International Holdings for $470m.

Motel 168 is one of the major branded economy hotel operators in China with 144 leased-and-operated properties and 137 franchised-and-managed hotels, comprising 45,669 rooms in 81 cities.

Home Inns received a term credit facility financing commitment for up to $300m for the deal from Credit Suisse and JP Morgan.

The transaction is expected to close in the fourth quarter of 2011.