Online travel aggregator EaseMyTrip is quietly strengthening its presence in the hospitality sector. In its latest move, the company has increased its stake in Eco Hotels and Resorts Limited by 7.77% through a rights issue, bringing its total holding in the eco-friendly hospitality brand to over 20.7%.

The investment marks a continuation of EaseMyTrip’s strategy to diversify beyond online travel bookings and make deeper inroads into the hotel business.

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The Investment Details

In a stock exchange filing, Easy Trip Planners Limited—the parent company of EaseMyTrip—confirmed that its board had approved the stake increase in a meeting held on September 20.

• The company subscribed to 10 lakh equity shares of Eco Hotels at Rs 15.20 apiece.
• The total investment amounts to roughly Rs 15.2 crore.
• The subscription will be completed in tranches, giving EaseMyTrip flexibility in managing cash flows.

This fresh investment comes nearly nine months after EaseMyTrip initially forayed into the hospitality space by acquiring a 13% stake in Eco Hotels in December 2023.

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Who is Eco Hotels?

Eco Hotels and Resorts Limited, incorporated in 1987, is a relatively small player in India’s hospitality sector with a clear focus: eco-friendly and sustainable hotels.

Despite being in existence for decades, the company remains in its early growth stages:

• Its turnover was just Rs 13.71 lakh in FY25, though that’s a jump from Rs 1.39 lakh in FY24 and Rs 0.78 lakh in FY23.
• The company has ambitions of scaling up, targeting both domestic and international markets, with an emphasis on “green” hospitality.

The backing of a well-capitalized and established travel platform like EaseMyTrip could provide Eco Hotels with both credibility and the resources needed to expand faster.

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Eco Hotels’ Aggressive Bets

Interestingly, Eco Hotels has not remained passive despite its small topline. At the close of Q1 FY26, the company made a series of bold investment decisions:

• Approved an investment of Rs 175 crore in Three Falcons Notting Hill Limited for a 50% stake.
• Acquired 100% stake in AB Finance Private Limited for Rs 194.4 crore.
• Approved an investment in Vashu Bhagnani Industries Limited, diversifying further.

These moves suggest that Eco Hotels is positioning itself as more than just a niche green hospitality brand. Instead, it appears to be evolving into a holding company with diversified bets in hospitality and adjacent businesses.

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EaseMyTrip’s Strategy Behind the Move

For EaseMyTrip, the decision to deepen its stake in Eco Hotels aligns with its broader diversification push. The company has already made strategic investments in different sectors to reduce reliance on online travel bookings alone.

Hospitality, in particular, is a natural extension of its core business. Owning or holding stakes in hotels allows EaseMyTrip to:

1. Secure better inventory for its customers at competitive prices.
2. Strengthen margins by reducing dependence on third-party hotels.
3. Build a recognizable brand presence in sustainable tourism, a segment growing rapidly worldwide.

The partnership with Eco Hotels could help EaseMyTrip tap into the rising demand for eco-conscious travel experiences.

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The Financial Context: A Tough Quarter

EaseMyTrip’s recent financial performance, however, paints a challenging picture.

• The company’s operating revenue fell by 25.5%, slipping to Rs 114 crore in Q1 FY26 from Rs 153 crore in Q1 FY25.
• Profit after tax (PAT) plunged 98.7%, down to Rs 44 lakh in Q1 FY26 compared with Rs 34 crore a year earlier.

The steep decline reflects both sector-wide challenges in travel and tourism, and the company’s increased spending on diversification and acquisitions.

By expanding into the hotel sector, EaseMyTrip is betting on building long-term resilience, even if short-term profits take a hit.

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Why This Matters

EaseMyTrip’s move is significant for several reasons:

• Indian hospitality is at an inflection point. Post-pandemic, travelers are seeking cleaner, greener, and more responsible experiences. Eco Hotels fits right into that narrative.
• Competition in online travel booking is intense. Rivals like MakeMyTrip and Booking.com dominate, leaving limited room for differentiation. Hospitality investments could help EaseMyTrip carve a niche.
• Sustainability is becoming mainstream. With global investors pushing for ESG (environmental, social, and governance) compliance, backing eco-friendly businesses could prove strategically wise.

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The Road Ahead

The journey is far from smooth. Eco Hotels’ current revenues remain minuscule compared to its big-ticket investments. Questions remain on whether the company can execute its ambitious expansion plans without overstretching financially.

For EaseMyTrip, the risk is also real. With its profits under pressure, tying up capital in a relatively unproven hospitality player may seem risky in the short term. However, if Eco Hotels manages to scale sustainably, EaseMyTrip could reap outsized rewards by getting in early.

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EaseMyTrip’s decision to increase its stake in Eco Hotels signals a clear intention: the company doesn’t just want to be a travel aggregator, it wants to be a stakeholder in the travel and hospitality ecosystem.

While its financials show near-term strain, this long-term bet could pay off if Eco Hotels succeeds in capturing the eco-conscious travel wave. For now, investors and industry watchers will be keeping a close eye on whether this green gamble turns into a golden opportunity.

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