Sunday PropTech raises ₹125 cr to buy hotels under Prism
The Indian hospitality industry has witnessed significant growth in recent years, driven by increasing demand for travel and tourism. To capitalize on this trend, Sunday PropTech, the asset acquisition arm of Prism, has raised ₹125 crore in fresh equity led by InCred. This investment will enable the company to acquire and upgrade mid-premium and premium hotels, marking a strategic shift from OYO’s earlier asset-light model to direct ownership.
The hospitality industry has undergone a significant transformation in recent years, with the rise of online travel agencies (OTAs) and hotel chains. OYO, one of the leading players in the industry, has been expanding its presence through its asset-light model, which involves partnering with existing hotel owners and operators. However, with the latest funding, Sunday PropTech is poised to take a more direct approach to hotel ownership, which is expected to provide greater control over the properties and enhance the overall guest experience.
The funds raised by Sunday PropTech will be utilized to acquire and upgrade hotels across various locations in India. The company has already identified seven potential deals, which are in advanced stages of negotiation. Additionally, Sunday PropTech aims to acquire 12 hotels in the current financial year (FY26), with a focus on mid-premium and premium properties. This expansion strategy is expected to strengthen the company’s presence in the Indian hospitality market and provide a more diverse range of options for travelers.
The shift towards direct ownership of hotels is a significant departure from OYO’s earlier asset-light model. Under this model, OYO partnered with existing hotel owners and operators, providing them with access to its technology platform, marketing expertise, and operational support. While this approach enabled OYO to rapidly expand its network of hotels, it also limited the company’s control over the properties and the guest experience.
By acquiring hotels directly, Sunday PropTech will be able to exercise greater control over the properties, enabling the company to implement its own standards and protocols for quality, service, and operations. This is expected to result in a more consistent and enhanced guest experience, which is critical for building customer loyalty and driving repeat business.
The Indian hospitality industry is highly competitive, with numerous players operating across different segments. However, Sunday PropTech’s focus on mid-premium and premium hotels is expected to provide a unique value proposition for travelers. These hotels typically offer a higher level of service and amenities, which is expected to appeal to business and leisure travelers who are seeking a more upscale experience.
The funding raised by Sunday PropTech is also a testament to the confidence of investors in the Indian hospitality industry. InCred, the lead investor in the funding round, is a prominent financial services company that has invested in various sectors, including hospitality. The company’s investment in Sunday PropTech reflects its confidence in the growth potential of the Indian hospitality industry and the company’s ability to execute its expansion strategy.
In conclusion, Sunday PropTech’s raising of ₹125 crore in fresh equity is a significant development in the Indian hospitality industry. The company’s shift towards direct ownership of hotels is expected to provide greater control over the properties and enhance the overall guest experience. With a focus on mid-premium and premium hotels, Sunday PropTech is poised to capitalize on the growing demand for travel and tourism in India. As the company expands its network of hotels, it is expected to provide a unique value proposition for travelers and establish itself as a leading player in the Indian hospitality industry.
News Source: https://ascendants.in/business-stories/oyo-prism-125cr-sunday-proptech-hotel/
About the Author
