EasemyTrip, through Jeewani Hospitality Private Limited, is set to invest up to Rs 100 crore in a 5-star hotel in Ayodhya. The decision comes amidst robust demand for accommodations in Ayodhya and Lakshadweep. The move aims to capitalize on the surge of tourists and pilgrims following the inauguration of the Ram temple.
During a meeting on February 11, the company’s Board sanctioned the establishment of a 5-star hotel in Ayodhya, located approximately a kilometer from the temple, as per an exchange filing by the company. The board endorsed the proposal to invest up to INR 100 crores in Jeewani Hospitality Private Limited, a company currently in incorporation, securing 50% of its aggregate share capital on a fully diluted basis through a swap mechanism. This entails the issuance of the company’s own equity shares on a preferential basis, as communicated by the company to the exchanges on February 11.
Prashant Pitti, co-founder of EaseMyTrip, mentioned to Moneycontrol recently that there is significant demand for destinations like Ayodhya and Lakshadweep. He stated, “Demand is robust, yet current availability falls short. Since introducing Lakshadweep packages recently, we’ve observed both inquiries and bookings picking up,” Pitti remarked following the company’s announcement of its earnings for the December quarter.
In the December quarter, the company witnessed a 9.6% surge in net profit, reaching Rs 45.6 crore, driven by strong growth in travel demand. Pitti highlighted that the non-air segment experienced notable expansion during this period. Additionally, the company received approval from the board to raise Rs 100 crore for potential acquisitions. Nonetheless, due to recent investments in acquisitions, the company has adjusted its profit before tax (PBT) target for FY24.