Beijing's local taxation department has found that the Home Inn Shuangjing Hotel has been providing fake invoices.
Home Inn has told local media that its Shuangjing hotel in Beijing has been closed for renovation and relevant managers have been punished.
In the written announcement sent by Home Inn to local media, Home Inn says that the executives and all the staff at Home Inn feel surprised at hearing news that showed the careless management of Home Inn's franchisees. The company says Home Inn Shuangjing has been asked to close for rectification until it gets offical invoices and licenses.
Businesses sometimes provide fake invoices in order to evade paying income tax, which in Home Inn's case would account for about 15% of its total revenue.
As of September 30, 2006, the Home Inns hotel chain consisted of 78 leased-and-operated hotels and 29 franchised-and-managed hotels in operation, with an additional 33 leased-and-operated hotels and 23 franchised-and-managed hotels under development, covering 45 cities in China. The average number of rooms per hotel in operation was 119.
It listed on NASDAQ earlier this year and Home Inns expects its total revenues in the fourth quarter of 2006 to be in the range of US$20.5 million to US$22.5 million.
