Amid Post-Ram Temple Inauguration Tourism Surge, EaseMyTrip Plans To Set Up 5-Star Hotel In Ayodhya

EaseMyTrip's Board formally approved the proposal to establish a luxurious 5-star hotel in Ayodhya, strategically positioned within a kilometer's proximity to the revered temple

EaseMyTrip divulged that the Board endorsed the proposal for the 5-star hotel by investing an amount of up to Rs 100 crores in Jeewani Hospitality Private Limited. ( Image Source :Getty )

In response to the rapid influx of tourists and pilgrims following the inauguration of the Ram temple, Indian online travel aggregator EaseMyTrip has announced plans to venture into the hospitality sector with a proposed 5-star hotel in Ayodhya. During a pivotal meeting held on February 11, the company's Board formally approved the proposal to establish a luxurious 5-star hotel in Ayodhya, strategically positioned within a kilometer's proximity to the revered temple, as the company disclosed in an exchange filing.

EaseMyTrip divulged that the Board endorsed the proposal for the 5-star hotel by investing an amount of up to Rs 100 crores in Jeewani Hospitality Private Limited. This investment would secure 50 per cent of the aggregate share capital of the aforementioned company on a fully diluted basis, facilitated through a swap mechanism involving fresh issuance of the company’s own equity shares on a preferential basis.

According to a news article, Prashant Pitti, co-founder of EaseMyTrip, highlighted the escalating demand witnessed for Ayodhya and Lakshadweep, citing, "The demand is high but availability is not enough at the moment. For the Lakshadweep packages the company introduced recently, we are seeing enquiries as well as conversions," following the announcement of the company's December quarter earnings.

EaseMyTrip disclosed a notable 9.6 per cent increase in net profit, amounting to Rs 45.6 crore during the December quarter, attributed to robust growth in travel demand, particularly in the non-air segment.

Furthermore, the company revealed intentions to pursue acquisitions, garnering the Board's approval to raise Rs 100 crore for this purpose. However, due to recent investments in acquisitions, the company adjusted its profit before tax (PBT) target for FY24 from Rs 250 crore to Rs 220 crore.

Discussing the company's decision to cease selling packages for the Maldives, Pitti said, "But we are standing by the decision the company took."

The company's shares were trading at Rs 50.62 apiece, down 0.43 per cent on the BSE on Monday at 12.40 pm.