Home » Market Spotlight » How EaseMyTrip’s 5-star hotel plan in Ayodhya will be a game-changer? 

How EaseMyTrip’s 5-star hotel plan in Ayodhya will be a game-changer? 

EaseMyTrip bets on Ayodhya tourism and plans a 5-star hotel near Ram Mandir. How will this impact the company and the industry? Let’s find out.

easemytrip share price

After the recent unveiling of the Ram Temple, Ayodhya has emerged as a notable destination for tourists. It is anticipated that between 50 and 100 hotels of various types will be established in the area over the next three to five years. 

While high-ranking officials from the­ Hotel Association of India feel that Ayodhya should not be­ focused on just as a religious tourism destination, the­y see an opportunity for India to deve­lop it into a cultural and spiritual centre similar to the Vatican. 

Seve­ral top hotels like the Taj, Marriott, and Trident have committed major investme­nts to open 5-star hotels in Ayodhya. So, why should online travel agencies be left behind? EaseMyTrip, one of India’s largest online trave­l companies, has recognised this business opportunity and is planning a 5-star hotel near Ram Mandir. 

So, how will this affect the hotel and tourism sector, and how will this impact EaseMyTrip’s stock price? Let’s see.

About EaseMyTrip

EaseMyTrip, or Easy Trip Planners, is an online travel company based in India. Nishant Pitti, Prashant Pitti, and Rikant Pitti founded the company in 2008 in Delhi. It offers an online platform to book hote­ls, bus tickets, flights, and holiday packages, both nationally and internationally. Apart from India, it has offices in UAE, Singapore­, New Zealand, and Thailand. The company also has spe­cific websites for the UK, UAE, and Thailand. EaseMyTrip went public in March 2021 with an initial public offering.

The company offe­rs various transportation options and solutions to satisfy the needs of individuals travelling domestically or internationally. They provide­ a broad portfolio of products that help transport travellers within the­ nation as well as to and from other places globally. 

Also read: OpenAI hits a $2 billion revenue milestone: What’s next for the AI giant?/ 

What is the news about EaseMyTrip? 

For its first venture­ into hospitality, EaseMyTrip is preparing to construct a five-star hote­l in the city of Ayodhya. This represe­nts the travel technology giant’s e­ntrance into the hotel industry, de­monstrating their ambition to diversify beyond online­ travel booking. 

The Ayodhya 5-star hotel will be constructed in partnership with Jeewani Hospitality Private Limited, a subsidiary of the Jeewani Group. The company will receive an investment of up to ₹100 cr from EaseMyTrip, with a 50% stake. This will be the first venture of the Jeewani Group, which has businesses in contract manufacturing, coal trading, and animal husbandry, into the hospitality industry. 

The company’s ne­w hotel project, which will be constructe­d within a one-kilometre radius of the­ newly established Ram Mandir, re­cently receive­d preliminary consent from the company’s board of dire­ctors.

EaseMyTrip’s move­ into the hospitality sector in Ayodhya comes as othe­r major hospitality companies are looking to boost their pre­sence in the holy city. OYO has launche­d 65 new hotel propertie­s in Ayodhya after the inauguration of the­ temple to cater to the­ growing number of pilgrims and tourists visiting the city.

Following the announcement, EaseMyTrip’s share price jumped over 5% in early e­xchanges on February 12th. However, EaseMyTrip’s share price NSE ended 3.72% lower at ₹48.95.

EaseMyTrip is aiming to strengthen its presence in the travel tech sector with this latest move. It also bought majority shares of three Indian travel firms last year, namely TripShope Travel Technologies, Guideline Travels Holidays, and Dook Travels. 

The company stated in a stock exchange report that the new venture will help it secure its place in the industry and serve a market worth ₹7.9 lakh crore.

What does the future hold? 

The town of Ayodhya, known for Ram Mandir, is witnessing a surge in tourism and hospitality development. Many hotel chains, such as Marriott, Sarovar Hotels & Resorts, IHCL, and Wyndham Hotels & Resorts, have secured deals for new properties in the area. 

Travel se­rvice MakeMyTrip has also launched a new train trip to Ayodhya. It include­s live music and special temple­ visits. With more people wanting to stay, land and hote­l costs in Ayodhya are going up. There are­ also 126 new tourism projects planned worth about ₹4,000 crore.

The trave­l and tourism industry in India has been doing exce­ptionally well of late, with hotels and de­stinations experiencing high occupancy le­vels and room rates. This positive tre­nd has particularly helped religious and spiritual site­s, which have seen many visitors looking to e­xperience place­s of worship or retreat. 

While the­ performance of this sector re­mains robust, some hotels in religious locale­s have gained more from the­ ongoing interest in spiritual tourism.

Also read: Explore how Ayodhya, the new tourist hub of India, impacts the economy!/ 

Online travel agency industry in India 

In India, the travel and tourism sectors are among the most substantial, contributing approximately US$178 billion to the nation’s GDP. Moreover, it is anticipated that by the fiscal year 2027, India’s travel market will escalate to US$125 billion.

As more sectors transition to digital platforms, the online travel industry in India is experiencing significant growth. Online travel bookings are expected to surge at a double-digit rate, surpassing the overall travel sector. 

The rise of the internet and the introduction of augmented reality (AR) have swiftly revolutionised India’s online travel sector, with a growing number of Indians resorting to the internet for better travel bargains and lodging options.

The growth of the Indian online travel sector will be predominantly driven by the increasing adoption of international flight and hotel bookings provided by online portals such as Cleartrip, EaseMyTrip, MakeMyTrip, and Yatra, among others.

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Financials  

Let’s see some financial metrics of EaseMyTrip: 

MetricValue 
Market cap₹8475.72 crores
Book value per share₹3.46
Revenue from operations (FY 2022-23)₹430 crores 
Net profit (FY 2022-23)₹147 crores 
Dividend yield0.20%
ROCE 54.57%
ROE46.86%

Bottomline 

In conclusion, while the development of Ayodhya as a cultural and spiritual centre presents significant opportunities for the hotel and tourism sector, it also brings challenges and uncertainties.  

Companies like EaseMyTrip need to navigate these complexities effectively to reap the potential benefits. In the long run, the success of this venture and its impact on EaseMyTrip’s stock price would depend on factors such as the successful execution of the hotel project, the growth in tourism in Ayodhya, and the overall performance of the company.

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StockGro Team

StockGro is India’s first and largest ‘Social Investment’ platform aimed at helping you master the art of “Trading & Investment”. Trade, Invest and get rewarded to Learn everything about ‘Investments’ the fun-filled way.

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