OYO Assets, the hotel acquisition and development arm of PRISM, has raised ₹125 crore in fresh equity funding from a group of institutional and private investors led by InCred. The announcement was made on November 23, 2024, and marks an important step in the company’s efforts to scale its presence within India’s growing premium and mid-premium hospitality market.
Funding Purpose and How It Will Be Used
The company plans to use the newly raised capital to speed up its hotel acquisition strategy across major leisure and business destinations. OYO Assets has set a target of acquiring 12 hotels during the current financial year. Seven of these deals are already in advanced stages of negotiation. The new properties will eventually be operated under PRISM’s range of hospitality brands, which include Sunday Hotels, Palette Hotels, Townhouse and several US-based brands that form part of the company’s international portfolio.
In addition to new acquisitions, OYO Assets intends to strengthen its overall asset management capabilities. The funds will be deployed to improve operational efficiency, support revenue management initiatives and help the company identify attractively priced properties in key markets. The focus is on building a consistently profitable and scalable portfolio that can meet the rising demand for organised premium hospitality across India.
InCred’s View on the Investment
Saurabh Jhalaria, Chief Investment Officer at InCred, expressed confidence in Sunday PropTech, the platform that operates OYO Assets. According to him, the company has already demonstrated resilient performance, steady cash flows and clear unit-level profitability.
Ritesh Agarwal’s Vision for PRISM
The latest fundraise follows a major corporate rebranding that took place in September 2024, when Oravel Stays was renamed PRISM. Founder and Group CEO Ritesh Agarwal explained that PRISM has been created to serve as a unified umbrella for the company’s expanding global businesses.
PRISM is built on significant investments in technology, data science and artificial intelligence. These capabilities are intended to help hospitality partners grow more profitably while improving customer experience across all touchpoints.
Agarwal has also stated that the company’s vision is to build the best lifestyle organisation for the modern traveller. PRISM brings together all of the company’s brands in a way that strengthens their individual identities rather than diluting them.
Current Portfolio Under PRISM
PRISM now oversees a wide range of hospitality and lifestyle brands. In the hotel category, the portfolio includes OYO, Motel 6, Townhouse, Sunday and Palette. The vacation homes division covers Belvilla, DanCenter, CheckMyGuest and Studio Prestige.
PRISM also operates extended stay brands such as Studio 6 in the United States. Outside the accommodation sector, the company owns Innov8 coworking spaces and Weddingz.in which it provides event and celebration venues. It also offers hospitality technology solutions that support revenue optimisation, operations management and guest experience tools for partners.
With the latest capital infusion and an expanded brand architecture, OYO are positioned to take advantage of the increasing demand for well-managed premium hotels in India’s rapidly evolving travel market. This can be a direct benefit for investors investing in Oyo unlisted shares.
