Lenovo's sister company under Legend Holdings Ltd., Legend Capital, might be looking at soon investing in budget hotels.

Xu Zhendong from Legend Investment has told local media that his company desires to share a piece of the hot action currently going on in China's budget hotel sector.

According to Xu, Legend Investment would prefer making investments in some established budget hotels instead of creating a new brand itself.

Rumors in the hospitality industry say that Legend Investment might partner might be GreenTree Inn, an international budget hotel chain that is rapidly expanding in Asia and China.

Note: This article was updated on September 28, 2005, at 16:46 (Beijing Time) to reflect translation errors in the name of the investment company and its relationship with Lenovo Group Ltd. -Ed.