Indian online travel aggregator EaseMyTrip.com has acquired a non-controlling stake of 13.39% in Eco Hotels and Resorts in a share swap transaction.
In a filing with the stock exchange, EaseMyTrip said “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.”
The deal involved the acquisition of four million equity shares, each valued at Rs10 ($0.12), which were issued on a preferential basis.
Eco Hotels and Resorts, promoted by Eco Hotels UK, is listed on the Bombay Stock Exchange (BSE).
This strategic investment is said to align with EaseMyTrip’s goal to diversify its portfolio and support eco-friendly practices in the hospitality space.
Eco Hotels is committed to operating carbon net zero hotels, stated EaseMyTrip.
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The collaboration between the two companies also opens opportunities for synergy, with discussions underway on various areas of cooperation.
In addition to hotel operations, Eco Hotels may engage in air and non-air businesses for customers on the EaseMyTrip.com platform and its subsidiaries.
Commenting on the deal, EaseMyTrip co-founder and CEO Nishant Pitti said: “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.
“By fostering environmentally conscious initiatives, we aim to shape the future of the travel and hospitality industry positively.”
Eco Hotels and Resorts executive chairman V K Tripathi said: “This strategic association between EaseMyTrip.com and Eco Hotels and Resorts Limited may turn out to be a game changer as such a synergy is hardly seen in the hospitality sector.”
Established in 2008, EaseMyTrip offers comprehensive travel solutions, including air tickets, hotels, holiday packages, rail and bus tickets, as well as ancillary services.
The company has offices in several Indian cities and international presence in Singapore, New Zealand, Thailand, UAE, UK, US, and the Philippines.
Eco Hotels and Resorts aims to become a top owner, developer, and asset manager of three-star premium and economy brands in BRICS and N11 (Next 11) economies, initially targeting the Indian market.
It plans to expand its inventory to over 15,000 rooms in the next decade by acquiring existing properties and utilising offsite modular building technology.