Chinese economy hotel chain Home Inns & Hotels Management Inc. (Nasdaq: HMIN) announced the pricing of an offering of 1.11 billion Yuan zero coupon convertible bonds, due 2012. The bonds will have a conversion price of US$53.09, a 44 percent premium to Home Inns' stock price at close of market on Tuesday. The bonds have a yield to maturity or yield to put of 0.50% and a three year put option. The company plans to use the proceeds of the sale to fund expansion through the construction of new hotels and acquisitions. Home Inns plans to open 160 to 180 new hotels in 2008 and reach 1,000 total hotels in three to four years.