EaseMyTrip to set up a 5-star hotel in Ayodhya; shares fall 7% from day’s high

Shares of online travel aggregator EaseMyTrip fell seven percent from its intraday high on February 12. The firm will establish a new 5-star hotel in Ayodhya, near the Ram Mandir temple.

In early trade, shares surged 5 percent but pared their gains to fall 2 percent in the red. As of 10.50 am, shares of the company were trading at Rs 50.6, lower by 1 percent on the NSE compared to the previous session’s closing price.

EaseMyTrip received an in-principle approval from its board for a joint-venture. The firm will commit Rs 100 crore as one of the joint venture partners, in Jeewani Hospitality, the entity super heading the project under incorporation.

In a filing with the exchanges, the firm said, “This investment will represent 50 percent of the total paid-up share capital of the JV Company on a fully diluted basis through equity swap, once finalized.”

“With over 2.4 million 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,” said Nishant Pitti, CEO & Co-Founder, EaseMyTrip.

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On February 9, EaseMyTrip reported a 9.6 percent increase in net profit at Rs 45.6 crore in the December quarter of FY24, up from Rs 41.69 crore during the same period a year ago on the back of robust growth in travel demand.

Sequentially, the company’s profits dropped from Rs 47 crore in the September quarter of FY24.

The travel aggregator reported a total income of Rs 165 crore, up 18 percent year-on-year (YoY) from Rs 139.8 crore. In Q2, the company had reported Rs 144 crore in income from operations.

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