MakeMyTrip has said that it has entered into shareholders’ agreement and share subscription and purchase agreement with My Guest House Accommodations Private Limited (MGH), a company that runs MyGuestHouse.net, which aggregates, sells and distributes hotel room inventory with a special focus on budget lodging accommodations and serviced apartments.

“Pursuant to these agreements, we can acquire 100 per cent of MGH's ordinary shares through an earn-out structure based upon the achievement of various business parameters spread over eight years. We expect the first closing to take place in November 2011, pursuant to which the Company will acquire an approximately 29 per cent stake in MGH against a cash investment of approximately $1.0 million,” the company said in a press release.

According to a statement issued by MakeMyTrip, the move will strengthen connectivity with hotels in India and allow it to improve efficiency in the distribution of hotel room inventories.