OYO Parent Company Sunday PropTech Raises ₹125 Crore, Plans to Acquire 12 New Hotels in India

OYO’s parent company, PRISM-backed Sunday PropTech, has raised ₹125 crore in a fresh funding round led by InCred and other institutional investors. The company plans to use the investment to expand its hotel portfolio in India, targeting the acquisition of 12 new premium and mid-premium hotels this fiscal year.

Sunday PropTech’s Business Focus

Sunday PropTech specializes in acquiring, developing, and professionally managing premium and mid-premium hotels in India. The company identifies properties with growth potential and optimizes them under a professional management system to enhance operational efficiency and guest experience.

With the rise in both leisure and business travel in India, there is a growing need for well-managed hotels. Sunday PropTech aims to capitalize on this opportunity by expanding its presence in key markets.

Significant ₹125 Crore Funding Boost

The latest funding round raised ₹125 crore, a substantial amount that will accelerate the company’s growth plans. According to Saurabh Jhalaria, Chief Investment Officer at InCred, Sunday PropTech’s initial performance has been strong, demonstrating stable cash flows and unit-level profitability.

The investment will help the company scale its hotel acquisitions, maintain financial discipline, and strengthen its asset management capabilities.

Plans to Acquire 12 New Hotels

Sunday PropTech plans to acquire 12 new hotels during this fiscal year, seven of which are already in advanced negotiations with owners. These hotels will operate under PRISM’s existing brands, including Sunday Hotels, Palette Hotels, Townhouse, and select international brands from the U.S.

The target audience for these hotels includes young travelers, families, and business professionals, aligning with the company’s strategic focus on high-demand segments.

Importance of This Investment

This new capital infusion is key to achieving Sunday PropTech’s goal of building a robust hotel portfolio in India. Benefits of the investment include:

• Accelerated hotel acquisitions

• Expansion into more cities

• Strengthened asset management capabilities

• Increased opportunities to acquire properties in prime locations

• Enhanced presence in the mid-premium and premium hotel segments

The company highlights that India’s hotel investment climate has improved significantly in recent years, driven by growth in tourism and business travel.

Growing Interest in the Hospitality Sector

Investor interest in India’s hospitality sector has surged in recent years. Travelers increasingly prefer professionally managed, organized hotels. With advances in technology, online booking, and operational efficiency, the sector has become more attractive to investors.

Platforms like Sunday PropTech are capitalizing on these trends by acquiring hotels, modernizing them, and implementing strategies to maximize returns.

Future Plans and Expansion Strategy

Post-funding, Sunday PropTech plans to adopt a more aggressive approach to acquiring hotels. Over the coming months, the company will focus on expanding in major Indian cities and improving profitability.

By targeting prime locations with strong tourist and business traffic and applying professional management systems, Sunday PropTech expects these hotels to generate substantial returns in the near future.