OYO Assets (Sunday PropTech): 10 Key Things You Must Know

Overview

OYO Assets, known commercially as Sunday PropTech, represents a significant strategic evolution within India's hospitality sector, specializing in the acquisition, development, and management of premium and mid-premium hotel properties. Unlike OYO's traditional asset-light model, Sunday PropTech adopts an asset-heavy ownership approach, allowing it to own, operate, and scale hotel assets under several brands, including Sunday Hotels, Palette Hotels, and Townhouse. This move aligns with global hospitality industry trends and sets the stage for OYO’s parent company Prism to strengthen its foothold in the organized hospitality market. Recent capital infusions and aggressive acquisition plans highlight an intriguing growth story worth exploring further.

1. The Genesis and Strategic Shift

Sunday PropTech was established in 2025 as the asset ownership and management arm under the broader Prism corporate umbrella, parented by OYO’s founder Ritesh Agarwal. It marks a shift from OYO's previous asset-light business, which focused on franchising and leasing, to an asset-heavy model aimed at capturing long-term property value, rental income, and operational profits. This strategy duplicates best practices from global hospitality giants who separate brand operations from asset ownership, enabling focused growth and diversified revenue streams.

2. Capital Infusion and Funding Milestones

In November 2025, Sunday PropTech raised ₹125 crore, led by the institutional investor InCred alongside several private investors. This capital is earmarked for expanding hotel acquisitions across key business and leisure markets in India. The funding underscores investor confidence in the platform’s coherent strategy and precision execution. With seven hotel acquisitions already in advanced discussion, this fresh infusion will accelerate the planned target of acquiring 12 properties within the financial year 2025-26.

3. Portfolio Composition and Geographic Reach

Sunday PropTech’s portfolio comprises premium and mid-premium hotels, primarily under Sunday Hotels and several other PRISM-owned brands. While its principal focus remains India, the portfolio also includes assets in the United States under well-known brands like Motel 6 and Studio 6. This dual-geography presence allows risk diversification and leverage of international hospitality knowledge, technology, and operational infrastructure.

4. Operational Excellence Through Technology

Leveraging OYO’s advanced technology stack, Sunday PropTech benefits from dynamic pricing, efficient distribution through a vast app user base (over 132 million downloads), and operational automation. This technology edge drives higher RevPAR (Revenue Per Available Room) and EBITDA margins averaging between 38-46% across US properties, enhancing profitability and competitive positioning.

5. Differentiated Business Model and Market Position

Sunday PropTech’s asset-heavy stance differentiates it from OYO’s core franchise operations, enabling the company to capture the upside from real estate appreciation alongside steady income streams from hotel operations. This hybrid model aligns with global hospitality practices seen with Marriott International and Hilton Worldwide, where asset ownership platforms coexist with brand management companies, unlocking complementary value streams.

6. Expansion Plans and Market Opportunity

The Indian hospitality market offers significant acquisition opportunities with a fragmented asset ownership landscape and increasing domestic travel demand. Sunday PropTech’s aggressive growth plan targets acquiring 12 hotels during FY26, focusing on premium locations poised for high ROI. The investment strategy prioritizes refurbishing undervalued or underperforming assets and rapidly transforming them using OYO’s brand and technology for quick cash flow generation.

7. Shareholding and Governance Structure

Sunday PropTech operates as an independent corporate entity separate from OYO’s asset-light operations, with a distinct board and financial structure. It is majority-owned by Prism, with significant shareholdings by institutional investors like InCred and Tattva Fund. The structured capital raises and debt-to-equity conversions have optimized its balance sheet for growth while maintaining financial discipline. The governance approach ensures transparency and strategic focus on asset management and operational excellence.

8. Brand Portfolio Under Sunday PropTech

The company manages assets under multiple brands such as Sunday Hotels, Palette Hotels, and Townhouse in India, and collaborates with US brands including Motel 6 and Studio 6. Each brand caters to specific market segments ranging from mid-premium stays to longer extended stays, offering diversified guest experiences and revenue sources. This multi-brand strategy enhances market penetration and allows tailored services for different customer preferences.

9. Institutional Interest and Market Validation

Sunday PropTech’s model has attracted institutional investors recognizing the growing trend towards organized capital in hospitality assets. Industry experts underscore its resilience through stable cash flows and unit-level profitability. The platform’s ability to acquire high-quality assets at scale, backed by operational expertise and market insights, has positioned it as a preferred partner in India’s increasingly organized hospitality investment arena.

10. Future Outlook and Growth Potential

With the backing of Prism and a strong investor base, Sunday PropTech is well-positioned to become a dominant player in India and potentially expand globally. Its commitment to acquiring 12 hotels in FY26 and the ability to integrate technology with asset operations augur well for scaling profitability and creating long-term value. The dual-structure business model offers flexibility to cater to diverse investor risk profiles, balancing growth and income generation while benefiting from emerging travel trends.

Conclusion

Sunday PropTech (OYO Assets) exemplifies a strategic shift in the Indian hospitality sector, blending asset ownership with digital innovation to capture new avenues of growth. By moving beyond franchising into hotel ownership and management, the company enhances revenue diversification and creates a robust platform for sustained profitability. Its aggressive acquisition targets, supported by institutional capital and advanced technology, signal a transformative era for OYO’s parent entity, Prism. As organized capital flows into Indian hospitality, Sunday PropTech’s trajectory raises a compelling question: Will this new hybrid model reshape the future landscape of hotel ownership in emerging economies?