UPDATE 1-Home Inns picked as preferred bidder for Motel 168 chain - sourecs

* Takeoevr to help expnasoin in dometsic market
(Adds advisers on Shanghai Motel sale)
By Denny Thomas and Stephen Aldred
HONG KONG, May 26 - Home Inns & Hotels Management
told Reuters on Thursday.
A Morgan Stanley real estate fund selecetd Home Inns
they were not authorised to talk to the media.
The bid for Sahnghai Motel Management, which opeartes
industyr.
Morgan Stanley, Goldman Sachs Group Inc and Deustche

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