In a significant move to diversify its business portfolio, EaseMyTrip, a prominent player in the traveltech sector, has acquired a non-controlling stake of approximately 13% in Eco Hotels and Resorts Limited through a share swap deal. The strategic investment marks EaseMyTrip’s entry into the hotel and hospitality industry.
Key Highlights:
- Stake Acquisition: EaseMyTrip has acquired a 13% stake in Eco Hotels and Resorts Limited through a share swap deal, exchanging equity shares with Eco Hotels India Private Limited.
- Environmental Commitment: The primary objective of this strategic investment is to promote environmentally friendly practices within the hospitality sector. Eco Hotels emphasizes carbon net zero hotels, aligning with EaseMyTrip’s commitment to sustainability.
- Eco Hotels’ Focus: Eco Hotels and Resorts Limited, listed on BSE and promoted by Eco Hotels UK PLC, aims to be a leading developer and asset manager of three-star premium and economy brands in emerging economies, with a primary focus on BRICS and N11 nations.
- Carbon Net Zero: All hotels operated by Eco Hotels will adhere to carbon net zero standards, emphasizing sustainable and responsible business practices in the hospitality industry.
- Diversification Strategy: Nishant Pitti, CEO of EaseMyTrip, highlights the strategic decision as part of the company’s commitment to sustainable practices and its vision to contribute positively to eco-friendly and green hotels. The move signifies a milestone in EaseMyTrip’s journey to diversify its portfolio.
Leaders’ Comments:
- Nishant Pitti, CEO of EaseMyTrip, sees the investment as aligning with the vision to contribute positively to eco-friendly and green hotels, marking a milestone in diversification.
- V K Tripathi, Executive Chairman of Eco Hotels and Resorts, emphasizes the strategic move towards an eco-conscious and luxurious experience, aligning with a commitment to a greener and more sustainable future.
Financial Performance:
EaseMyTrip reported a robust performance in Q2 FY24, with a 66% YoY increase in consolidated net profit to INR 47 Cr and a 31% YoY growth in operating revenue, reaching INR 142 Cr.
