EaseMyTrip, the prominent online travel aggregator, has decided to venture into the hospitality sector. The company’s board has given the green light to a proposal to establish a luxurious five-star hotel in Ayodhya, situated in close proximity to the recently inaugurated Ram Temple on January 22.
In a recent statement, the company announced, “The Board of Directors of Easy Trip Planners Limited, in its meeting held on February 11, 2024, has approved the proposal to open a 5-star hotel in Ayodhya, located less than 1 kilometre from Shree Ram Mandir. This initiative entails an investment of up to ₹100 crores in Jeewani Hospitality Private Limited, a company currently undergoing incorporation. EaseMyTrip will acquire 50% of the aggregate share capital of the said company on a fully diluted basis through a swap mechanism, involving the fresh issuance of the company’s own equity shares on a preferential basis.”
The decision marks a significant strategic shift for EaseMyTrip, signalling its intent to diversify its offerings and tap into new revenue streams within the booming hospitality industry. Ayodhya, a city of immense cultural and religious significance, presents a lucrative opportunity for the company to establish a presence in the hospitality sector, particularly with the recent inauguration of the Ram Temple drawing increased tourist footfall to the region.
Despite this bold move into hospitality, EaseMyTrip continues to demonstrate its financial prowess in its core business of online travel aggregation. The company reported a notable 9.6% increase in net profit, reaching ₹45.6 crores in the December quarter of FY24, up from ₹41.69 crores during the corresponding period the previous year. This growth can be attributed to a robust surge in travel demand, reflecting the gradual recovery of the travel industry from the impacts of the COVID-19 pandemic.
However, it’s worth noting that the company’s profits witnessed a sequential decline from ₹47 crores in the preceding September quarter of FY24. Despite this dip, EaseMyTrip remains optimistic about its long-term growth prospects, buoyed by its resilient performance amidst challenging market conditions.
In terms of total income, EaseMyTrip reported a commendable year-on-year increase of 18%, with total income reaching ₹165 crores in the December quarter, compared to ₹139.8 crores during the same period a year ago. This steady growth underscores the company’s ability to adapt to evolving market dynamics and capitalise on emerging opportunities within the travel and hospitality sectors.
As EaseMyTrip embarks on its journey into the hospitality sector with the upcoming launch of its five-star hotel in Ayodhya, all eyes will be on the company as it seeks to leverage its expertise and brand reputation to carve a niche for itself in this competitive industry landscape. With its proven track record of innovation and customer-centric approach, EaseMyTrip is well-positioned to redefine the hospitality experience and drive value for both travellers and investors alike.