Chinese Economy Hotel Chain 7 Days Group (SVN) IPO Surges

November 20, 2009 9:52 AM EST

The IPO for 7 Days Group Holdings Limited (NYSE: SVN) is open for trading. Share are trading at $13.70 after pricing 10.1 million share IPO at $11, the top end of the $9-$11 range.

The offering is being made through JPMorgan, Citi and Oppenheimer & Co.

7 Days is a national economy hotel chain based in China. The company converts and operates limited service economy hotels across major metropolitan areas in China under it's award-winning "7 Days Inn" brand.

7 Days is the nations third larges economy hotel chain with 283 hotels and 28,266 rooms. It is the fastest growing top-ten national economy hotel chain. It has a pipeline of 77 hotels and 7,476 rooms under conversion.

As of June 30, 2009, the largest economy hotel operator in China had 547 hotels compared to the largest economy hotel operator in the United States which had over 5,070 economy hotels in its system.

The economy hotel chain sector of China’s lodging industry has been expanding rapidly as a result of a number of factors, including the growth of the Chinese economy and the growth of the travel industry in China, as well as increasing numbers of fast-growing small- to medium-sized enterprises, or SMEs, the growth of domestic tourism, increasing disposable income, Internet developments, the expansion of urban business centers and a growing recognition of the economy hotel accommodation options by customers.

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