Sunday Expansion: OYO’s Premium Brand to Launch 40 Upscale Hotels Across India in FY 2025–26

In a bold move that signals its growing ambitions in the luxury hospitality space, OYO’s premium brand Sunday Hotels is set to add 40 new upscale properties across India during the financial year 2025–26. The announcement comes from Prism, OYO’s parent company, which is currently preparing for its much-anticipated IPO. This expansion marks a significant step in OYO’s evolution from budget accommodations to high-end hospitality, and reflects a strategic pivot toward metro cities, tourism hotspots, and religious destinations.

 

The new properties will include a mix of 4-star and 5-star hotels, with a focus on blending global hospitality standards with localized experiences. According to Aditya Sharma, Business Head of Sunday Hotels and Resorts, the brand aims to create a “flexible and profitable model for both seasoned hotel owners and entrepreneurs across India”.

 

Metro Meets Mandir: Where Sunday Is Headed

Sunday Hotels’ expansion blueprint is as ambitious as it is diverse. The brand is targeting both metro markets and non-metro cities, with a special emphasis on tourism-heavy states like Gujarat, Uttar Pradesh, and Rajasthan. These three states alone are expected to contribute over 40% of the new portfolio.

 

The brand is in advanced talks with hotel owners to establish Sunday properties in key urban centers such as Mumbai, Hyderabad, Chennai, Bengaluru, Kolkata, and Raipur. At the same time, it is eyeing locations near wildlife sanctuaries, pilgrimage sites, and heritage destinations to tap into India’s booming domestic travel market.

 

This dual-market strategy reflects a growing trend in Indian hospitality: travelers are seeking premium experiences not just in big cities but also in culturally rich and scenic locales. Sunday Hotels intends to meet that demand with properties that offer luxury, technology-driven services, and local flavor.

 

IPO Momentum and Strategic Timing

The timing of this announcement is no coincidence. Prism, OYO’s parent firm, is gearing up for its IPO, and the Sunday Hotels expansion adds a compelling narrative to its growth story. By showcasing its ability to scale in the premium segment, OYO is positioning itself as more than just a budget accommodation provider—it’s signaling its readiness to compete with established luxury hotel chains.

 

The move also aligns with broader industry trends. Post-pandemic, India’s hospitality sector has seen a resurgence in demand for high-end stays, especially among millennials and Gen Z travelers who value experience over economy. Sunday Hotels is designed to cater to this demographic, offering curated stays with smart tech, personalized services, and immersive local experiences.

 

What Sets Sunday Apart?

Sunday Hotels isn’t just another premium brand—it’s a reimagining of what upscale hospitality can look like in India. According to Sharma, the brand integrates “global hospitality expertise with localized operations and cutting-edge technology”. This includes:

This tech-forward, culturally rooted approach is designed to appeal to both domestic and international travelers, especially those seeking authenticity with comfort.

 

Looking Ahead

With 40 new hotels in the pipeline, Sunday Hotels is poised to become a major player in India’s premium hospitality landscape. The brand’s expansion will not only diversify OYO’s portfolio but also redefine its public image ahead of its IPO.

 

As Prism continues to court investors, the success of Sunday Hotels could become a key metric of OYO’s long-term viability in the luxury segment. If executed well, this expansion could mark a turning point—not just for the brand, but for the broader Indian hotel industry.

 

Sources: Economic Times, Rediff Money, Devdiscourse: