The VXL Capital subsidiary "U" Inns & Hotels Company Limited has spent US$5 million to acquire Dunhuang Post Hotel and plans to rebuild it into a medium-grade business hotel.

This acquisition is the second investment from a foreign company in Dunhuang's hotel market — the first being Singapore's Banyan Tree Group. VXL Capital Limited is a company listed in Hong Kong and the company has purchased more than ten hotels including properties in Hubei and Shandong, which have been sold by China Post Group on the Shanghai United Assets and Equity Exchange since March 2007. The company specially launched the brand of "U" Inns to target the hotel chain market.

After setting-up in Dunhuang, "U" Inns will take advantage of the international hotel brand's prestige and management experiences to improve the service and operational levels of Dunhuang's hoteliers, and to form a larger network together with the other tourism resources owned by VXL Capital Limited in Southeast Asia and domestic regions.