EaseMyTrip Ventures into Hospitality with Ayodhya 5-Star Hotel Amid Tourism Surge

12 Feb 2024 , 02:41 PM

EaseMyTrip plans to open a 5-star hotel in Ayodhya to cater to the increased influx of tourists and pilgrims following the inauguration of the Ram temple.

In a meeting on February 11, the company’s Board approved the proposal for a 5-star hotel in Ayodhya, strategically located one kilometer from the temple.

The board approved the investment of up to ₹100 Crores in Jeewani Hospitality Private Limited, a company under incorporation. This investment constitutes 50% of the aggregate share capital of the said company on a fully diluted basis through equity swap, involving the fresh issuance of the company’s own equity shares on a preferential basis.

EaseMyTrip co-founder Prashant Pitti highlighted strong demand for Ayodhya and Lakshadweep. The company is witnessing high demand, but availability remains limited. The recent introduction of Lakshadweep packages has seen considerable interest.

The company reported a 9.6% increase in net profit at ₹45.6 Crore in the December quarter, driven by robust growth in travel demand, particularly in the non-air segment.

The company aims to acquire companies and has received board approval to raise ₹100 Crore for this purpose. However, the recent acquisitions have led to a revision in the profit before tax (PBT) target for FY24 from ₹250 Crore to ₹220 Crore.

On February 9, the stock closed at ₹52.20 on NSE, reflecting a 2.15% increase from the previous close. At the time of writing, the stock was trading at ₹50.25, indicating a 1.66% dip from the previous close.

EaseMyTrip, founded in 2008 by Nishant Pitti, Rikant Pitti, and Prashant Pitti, is an Indian online travel company headquartered in New Delhi. The company offers various travel services, including hotel bookings, air tickets, holiday packages, bus bookings, and white-label services. EaseMyTrip also has overseas offices in Singapore, UAE, and Thailand, with country-specific websites for the UAE, UK, and Thailand.

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