EaseMyTrip, a leading player in the travel tech industry, is poised to enter the hospitality sector with the development of a new five-star hotel in Ayodhya, marking its maiden investment in this domain.
Situated within a 1-kilometer radius of the recently sanctified Ram Mandir, this venture underscores EaseMyTrip's strategic move to diversify its portfolio into the hospitality realm. The decision to embark on this project was greenlit during a board meeting held on Sunday (February 11).
In a significant financial commitment, EaseMyTrip has earmarked up to INR 100 crore for investment in Jeewani Hospitality Private Limited, a subsidiary of the Jeewani group. The travel tech startup plans to secure a 50% stake in the company on a fully diluted basis through this investment, as stated in an exchange filing.
Nishant Pitti, Co-founder and CEO of EaseMyTrip, emphasized the growing significance of Ayodhya as a prime investment hub, particularly following the influx of over 2.4 million visitors post the Pran Pratishtha of the Ram Temple. Pitti remarked that the city's burgeoning tourism sector presents a lucrative opportunity for businesses to offer tailored hospitality experiences, coupling spiritual exploration with premium amenities.
EaseMyTrip's venture into Ayodhya's hospitality landscape aligns with broader trends, as other major players in the industry are also amplifying their presence in the city. Notably, OYO has recently introduced 65 new properties in Ayodhya following the temple's consecration.
The announcement of this strategic initiative resulted in a notable surge in EaseMyTrip's share prices, which surged over 5% in early trading on February 12, reflecting investor confidence in the company's diversified expansion approach.
This endeavor marks the second foray into a new business segment for EaseMyTrip this year. In January, the company ventured into the insurtech domain with the establishment of EaseMyTrip Insurance Broker, aiming to tap into a market estimated at INR 7.9 lakh crore, leveraging its substantial user base of 20 million.
Following the announcement of its insurtech venture, EaseMyTrip witnessed a substantial uptick in its share value, with shares soaring as much as 19% during intraday trading on January 11.
The launch of these new business verticals follows closely on the heels of EaseMyTrip's Q3 FY23 financial results, which demonstrated a commendable 9.6% increase in consolidated net profit to INR 45.6 crore, underscoring the company's robust financial performance amidst its expansion endeavors.