SUMMARY
The traveltech major is establishing a 5-star hotel in the holy town Ayodhya in a joint venture with Jeewani group’s Jeewani Hospitality Private Limited
It has earmarked INR 100 Cr as its first investment in the hotel space
After the announcement of the in-principle approval, the startup’s share prices jumped by over 5% in early trade on February 12
EaseMyTrip is gearing up to build a new five-star hotel in the city of Ayodhya, a move that will mark the travel tech major’s foray into the hospitality sector.
This will be the company’s first investment in the hotel space.
The startup’s new hotel will be built in a 1 KM vicinity of the recently consecrated Ram Mandir. Its board of directors have approved for the construction after a meeting held on Sunday (February 11).
EaseMyTrip has set aside capital of up to INR 100 Cr for investment in Jeewani Hospitality Private Limited, a part of the Jeewani group.
In an exchange filing, the traveltech startup said it would be investing the amount for a 50% stake in the company on a fully diluted basis.
“With over 2.4 Mn visitors flocking to Ayodhya following the Pran Pratishtha of the Ram Temple, the city has emerged as a prime investment destination for businesses to offer hospitality options tailored to tourists and inviting guests to delve into a spiritually fulfilling journey while relishing in top-notch hospitality,” the company’s co-founder and CEO Nishant Pitti said.
EaseMyTrip’s hospitality foray into the holy city comes on the back of other hospitality majors making a beeline to strengthen their presence in the city. OYO has also launched 65 new properties in Ayodhya post the consecration of the temple.
After the announcement of the in-principle approval, the startup’s share prices jumped by over 5% in early trade on February 12. EaseMyTrip shares jumped up to a high of INR 53.67 from the previous close of INR 50.84.
This marks the OTA’s second foray in a different business this year. In January, EaseMyTrip set up a new insurance arm called EaseMyTrip Insurance Broker, marking its foray into the insurtech space.
The company said in an exchange filing that the new venture is expected to solidify its position in the industry and enable it to cater to an INR 7.9 Lakh Cr market with its user base of 2 Cr.
After it announced its insurtech foray, shares of the traveltech major jumped as much as 19% to INR 52.76 during the intraday trading on the BSE on January 11.
The company’s new business adventure comes three days after it reported a profitable Q3 FY23. The startup reported a 9.6% increase in consolidated net profit to INR 45.6 Cr in the quarter ended December 2023 from INR 41.6 Cr in Q3 FY23.
