EaseMyTrip to Build 5-Star Hotel in Ayodhya, Share Price Surges

EaseMyTrip, a prominent travel agency, has unveiled plans to construct a luxurious five-star hotel in Ayodhya near the Sri Ram Mandir, leading to a significant surge in the company's share price. The board of directors has approved a proposal to invest Rs 100 crore in Jeewani Hospitality Private Limited for the hotel project, strategically located approximately 1 km from the revered Shree Ram Mandir. Following the announcement, EaseMyTrip's share price rose by 5.6% to Rs 53.7 per share in morning trade on the BSE.

The proposed 5-star hotel in Ayodhya aligns with the economic impact anticipated from the Ram Mandir, with tourism expected to surge to 5 crore visitors annually. Global brokerage firm Jefferies projects significant growth in the hospitality sector in Ayodhya, with 73 new hotels in the pipeline, 40 of which are already under construction.

Renowned hotel chains and hospitality companies, including IHCL, Marriott International, Wyndham, and OYO Rooms, are also planning to expand their presence in Ayodhya. The overall makeover of Ayodhya, including a new airport, revamped railway station, township, and improved infrastructure, is expected to drive economic activities, benefiting various sectors such as hotels, airlines, hospitality, FMCG, travel ancillaries, and cement.

Jefferies identified Indian Hotel Company and EIH as potential beneficiaries in the hotel space, while companies like ITC, Jubilant Foodworks, Britannia Industries, Godrej Consumer, Westlife Foodworld, Hindustan Unilever, Devyani International, and Sapphire Foods from the FMCG and QSR space are also expected to benefit. Additionally, InterGlobe Aviation (Indigo), SpiceJet, IRCTC, and EaseMyTrip are likely to gain from the growth in the travel sector. The transformation of Ayodhya into a global religious and spiritual tourist hotspot is set to have a substantial impact on multiple sectors, marking a significant shift for the ancient city.