Chinese budget hotel chain Home Inn has revealed plans to get listed overseas in order to earn more profit for its shareholders.

Sun Jian, CEO of Home Inn, has told local media that the company has begun to prepare for the initial public offering, but he did not disclose which stock market they will go to and how much capital they plan to raise.

In the next three years, Home Inn will gradually enter 15-20 regional cities in the area centered around Guangzhou and Shenzhen.

A representative from Home Inn says that there is less space for budget hotels in big cities like Beijing and Shanghai with the competition in the hotel industry becoming fiercer. However, there is still potential for budget hotels in second-tier cities like Zhuahai and Zhongshan.

By the end of 2008, Home Inn will invest and build 10 hotels in Guangzhou, and 8 in Shenzhen. By that time, Home Inn will have 40 franchise hotels in southern China. All this will involve a total investment of RMB300 million.

Over the next few years, Home Inn faces competition from domestic and international budget brand hotels like Akena, Super 8, and Jinjiang Inn.