EaseMyTrip, a significant player in the traveltech sector, has acquired a non-controlling stake of around 13% in Eco Hotels and Resorts Limited through a share swap deal, signaling its entry into the hotel and hospitality industry.
“The company’s investment in equity shares of Eco Hotels India Private Limited is swapped with equity shares of Eco Hotels and Resorts Limited in the ratio of 1:1 and the company has acquired 40,00,000 equity shares of INR 10 each of Eco Hotels and Resorts Limited, issued on preferential basis,” said EaseMyTrip in a statement.
The startup stated that its key goal in the strategic investment in Eco Hotels is to obtain a minority stake and advance environmentally friendly practices within the hospitality sector.
EaseMyTrip asserted that every hotel managed by Eco Hotels will be carbon-neutral establishments.
Eco Hotels and Resorts Limited, a company listed on the BSE and promoted by Eco Hotels UK PLC, strives to emerge as a prominent owner, developer, and asset manager specializing in three-star premium and economy brands across the BRICS and N11 (Next 11) economies, with a primary focus on India.
At present, the hospitality company asserts the successful development of two brands, with one prototype Ecolodge currently operational in Kochi, Kerala.
In response to the acquisition, Nishant Pitti, EaseMyTrip’s co-founder and CEO, expressed that the strategic move underscores the online travel aggregator’s dedication to sustainable and responsible business practices.
“Our choice to invest in stakes aligns with our vision to contribute positively to the growth of eco-friendly and green hotels. This investment marks another milestone in our journey to diversify our portfolio and enhance the travel experiences we offer to our customers,” said Pitti.
It’s worth noting that over the past two years, EaseMyTrip has acquired several companies as part of its strategy to broaden its offerings and diversify its portfolio.
By 2:45 PM IST, EaseMyTrip’s shares were experiencing a slight uptick, trading at INR 38.32 on the BSE.
Meanwhile, V K Tripathi, executive chairman of Eco Hotels and Resorts, said on the stake acquisition, “This is not just a business decision; it’s a calculative move towards expanding our horizons and presenting guests with an elevated, ecoconscious, and luxurious experience that aligns seamlessly with our commitment to a greener and more sustainable future.”
In Q2 FY24, EaseMyTrip disclosed a 66% year-on-year (YoY) surge in its consolidated net profit, reaching INR 47 crore, with operating revenue experiencing a 31% YoY increase to INR 142 crore.
