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 for its first investment in the hotel space
The startup is looking at such opportunities throughout the country by entering into similar JVs with local parties, its independent director Vinod Kumar Tripathi told Inc42
EaseMyTrip is gearing up to build a new five-star hotel in the city of Ayodhya, a move that will mark the traveltech 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 and the company’s board gave in-principle approval for the same, EaseMyTrip said in an exchange filing.
EaseMyTrip has set aside a capital of up to INR 100 Cr for investment in Jeewani Hospitality Private Limited, a part of the Jeewani Group.
This will also mark the entry of the Jeewani Group, which operates in coal trading, contract manufacturing and animal husbandry space, in the hospitality sector.
In the filing, EaseMyTrip 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,” cofounder and CEO Nishant Pitti said.
Meanwhile, EaseMyTrip’s independent director Vinod Kumar Tripathi told Inc42 that the five-star hotel is being set up in a 1 Lakh square foot area near the temple.
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 Ayodhya, we will be looking at opportunities throughout the country by entering into similar JVs with local parties. We don’t have any fixed pattern but the aim is to spread throughout the country,” Tripathi told Inc42.
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 touched a high of INR 53.67 on the BSE. However, the stock gave up the gains to end today’s session 3.72% lower at INR 48.95.
The latest move is a part of EaseMyTrip’s efforts to consolidate its position in the travel tech space. Last year, it also acquired a majority stake in three Indian travel companies including Guideline Travels Holidays, TripShope Travel Technologies and Dook Travels.
Tripathi told Inc42 that this investment will allow the company to expand into the mobility segment as well.
In January this year, EaseMyTrip also set up a new insurance arm called EaseMyTrip Insurance Broker to enter 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.
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.