Ayodhya: Online travel aggregator EaseMyTrip is set to venture into the hospitality sector by establishing a 5-star hotel in Ayodhya, strategically aiming to capitalize on the surge of tourists and pilgrims drawn to the recently inaugurated Ram temple.
Following a board meeting on February 11, the company officially announced its approval for the hotel project, which will be situated approximately a kilometer from the temple, as detailed in an exchange filing. The proposed 5-star hotel will materialize through an investment of up to INR 100 crores in Jeewani Hospitality Private Limited, a company currently under incorporation. This investment secures 50% of the aggregate share capital through a fully diluted basis, involving a swap mechanism, i.e., the fresh issuance of the company’s equity shares on a preferential basis.
EaseMyTrip co-founder Prashant Pitti highlighted the robust demand for Ayodhya and Lakshadweep, noting a significant uptick in inquiries and conversions following the recent introduction of Lakshadweep packages. After announcing the December quarter earnings, Pitti expressed optimism about the high demand, although he acknowledged that availability might be a limiting factor.
EaseMyTrip reported a notable 9.6% increase in net profit, reaching Rs 45.6 crore in the December quarter, propelled by robust growth in travel demand. The non-air segment particularly displayed strong growth during the quarter, according to EaseMyTrip co-founder Prashant Pitti.
The company is now eyeing acquisitions, having secured board approval to raise Rs 100 crore for this purpose. However, due to recent investments in acquisitions, the company has revised its profit before tax (PBT) target for FY24, possibly adjusting from Rs 250 crore to Rs 220 crore. Pitti cited acquisition costs as the reason for potential PBT target adjustment.
Additionally, Pitti addressed the company’s decision to cease selling packages for the Maldives, stating that while it was a well-selling product, the company is standing by its decision. As of February 9, the company’s stock closed at Rs 52.20 on NSE, reflecting a 2.15% increase from the previous close.