Traveltech major EaseMyTrip has acquired a non-controlling stake of about 13% in Eco Hotels and Resorts Limited in a share swap deal to enter 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 said that the primary objective of the strategic investment in Eco Hotels is to acquire a minority interest and promote environmentally friendly practices within the hospitality sector.
All the hotels operated by Eco Hotels will be carbon net zero hotels, claimed EaseMyTrip.
Eco Hotels and Resorts Limited is a BSE-listed company promoted by Eco Hotels UK PLC. Eco Hotels aims to become a leading owner, developer and asset manager of three-star premium and economy brands in the BRICS and N11 (Next 11) economies, with India being the primary focus.
The hospitality company currently claims to have completed the development of two brands, with one prototype Ecolodge operating in Kochi at Kerala.
Commenting on the acquisition, Nishant Pitti, cofounder and CEO of EaseMyTrip, said that the strategic decision reflects the online travel aggregator’s commitment 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 is pertinent to mention that EaseMyTrip has acquired multiple companies over the last two years as it looks to expand its offerings and diversify its portfolio.
Shares of EaseMyTrip were trading marginally higher at INR 38.32 on the BSE by 2.45 PM IST.
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.”
EaseMyTrip reported a 66% year-on-year (YoY) jump in its consolidated net profit to INR 47 Cr in Q2 FY24 on an operating revenue of INR 142 Cr, which jumped 31% YoY.
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