IANS | 12 Feb, 2024
Travel agency EaseMyTrip has announced plans of building a luxury
five-star hotel in Ayodhya near the Sri Ram Mandir which led to a surge
in the company’s share price on Monday.
The company’s board of directors has approved the Rs 100 crore
proposal to invest in Jeewani Hospitality Private Limited for
implementing the hotel project that is expected to be located about 1 km
from the Sri Ram Mandir.
The company shares rose 5.6 per cent to Rs 53.7 a piece in morning trade on the BSE.
"...we
have greenlit a groundbreaking proposal to venture into the hospitality
sector with the establishment of a luxurious 5-star hotel in Ayodhya,
strategically located less than 1 km from the revered Shree Ram Mandir.
This decision marks a significant investment milestone of up to Rs 100
crore in Jeewani Hospitality Pvt Ltd, the entity spearheading this
ambitious project," EaseMyTrip CEO and co-founder Nishant Pitti wrote on
X.
The announcement led to a surge in the company’s share price on the on stock markets on Monday
Ram
Mandir in Ayodhya is expected to have a big economic impact in the
region as tourism is projected to surge to 5 crore visitors every year
to the holy town, according to global brokerage firm Jeffries.
Ayodhya
has witnessed a surge in hotel construction and development. Currently,
the city has approximately 17 hotels with around 590 rooms. To meet the
anticipated increase in tourist arrivals, 73 new hotels are in the
pipeline, with 40 of them already under construction, as per the report.
Several
renowned hotel chains and hospitality companies, including IHCL (Indian
Hotels Company Limited), Marriott International, Wyndham, and OYO
Rooms, are planning on creating more hotels in Ayodhya.
The
hospitality projects are expected to add significant room capacity to
accommodate the growing number of tourists and pilgrims visiting
Ayodhya.
Jefferies has picked Indian Hotel Company and EIH as the
potential beneficiaries from hotel space, while it sees ITC, Jubilant
Foodworks, Britannia Industries, Godrej Consumer, Westlife Foodworld,
Hindustan Unilever, Devyani International and Sapphire Foods from the
FMCG and QSR space. InterGlobe Aviation (Indigo), SpiceJet, IRCTC and
Ease My Trip shall benefit from the travel sector.
"A $10 billion
makeover (around Rs 82,500 crore) which includes a new airport, revamped
railway station, township, improved road connectivity, etc. will likely
drive a multiplier effect with new hotels and other economic
activities. It can also set a template for infra-driven growth for
tourism," the Jefferies report states.
Amid increased economic and
religious migration to Ayodhya, "multiple sectors stand to benefit
including hotels, airlines, hospitality, FMCG, travel ancillaries,
cement etc," the report added.
"The makeover is now set to
transform the ancient city from a sleepy town to a global religious and
spiritual tourist hotspot. Tourism is projected to surge and increased
economic and religious migration to Ayodhya, multiple sectors stand to
benefit including hotels, airlines, hospitality, FMCG, travel
ancillaries, cement etc," the Jefferies report added.