Business Model, Risks And Strategies of Sunday Proptech

Sunday Proptech Limited is a hospitality-focused asset ownership and hotel management company that acquires, renovates, and operates premium and mid-premium hotels. The company is headquartered in Gurgaon and was founded in 2018. It matters in India’s real-estate scene because it brings institutional capital, professional operations, and technology-driven pricing to a sector that is still mostly run by individual owners.

Market context

India’s hotel industry is growing due to rising domestic travel, rapid urbanisation, a shortage of quality rooms, and an increasing shift toward organised real estate. Traditional hotel chains and small developers often struggle due to high capital needs and inconsistent service. Sunday Proptech fits into a newer category that owns high-potential hotel assets, improves them, and runs them to deliver predictable returns. It is neither a developer nor a pure operator. It is a company that combines ownership with on-ground operations to strengthen the hotel’s long-term performance.

Company structure overview

What Sunday Proptech Does and How It Earns

Core products and services

• Acquires, renovates, and operates premium and mid-premium hotel assets

• Portfolio includes four and five-star hotels, boutique city hotels, leisure resorts, office assets, and select international properties

• Manages end-to-end hotel operations, pricing, sales, and marketing

• Provides long-term property and asset management

• Operates under brands such as Sunday Hotels, Palette Hotels, Townhouse, and extended-stay formats

Revenue streams

• Room bookings across business, leisure, and extended-stay stays

• Food and beverage income, including banquets and events

• Recurring income from long-term rentals and managed assets

• Guaranteed-return arrangements with investors

• Asset management fees

• Long-term value from the appreciation of owned real-estate assets

How Hotel Assets Are Turned into Steady Cash Flows

The company sources hotel assets in high-demand markets through direct purchases, joint ventures, or long-term leases. Renovation plans are designed to lift occupancy and room rates within the first year while keeping costs under control. Standard operating systems and disciplined pricing improve cash flow early in the asset’s life cycle. As properties mature, income becomes more predictable, allowing capital to be redeployed into future acquisitions.

Proptech layer and technology play

Sunday uses PRISM’s technology tools, which include dynamic pricing systems, centralised operations dashboards, CRM tools, and guest-experience apps. These tools help cut staffing costs, increase bookings, and improve overall service consistency. Data on pricing, occupancy, guest reviews, and local demand patterns allows the company to run each property with better accuracy. As the hotel count increases, data quality improves and helps the company make more confident decisions.

Capital and funding strategy

Sunday uses a mix of equity, debt, and structured capital. The recent ₹125 crore fundraise from InCred and Analah is being used for new hotel acquisitions and operational improvement. Assets are held in separate entities, which gives the company flexibility to refinance or sell them in the future. The company focuses on buying assets that already show strong potential rather than taking on risky development work.

Growth strategy and expansion

Sunday plans to grow across major cities, business destinations, leisure spots, wildlife locations, and pilgrimage markets. It aims to acquire 12 hotels in FY26 and add 40 more premium hotels over the next few years. Growth is supported through digital sales, channel partners, and PRISM’s wider distribution network. The company’s approach focuses on steady expansion and controlled financial risk.

Risks and mitigants

• Exposure to tourism demand cycles and regulatory changes

• Execution risks during acquisition and operations

• Risk control through selective acquisitions and careful financial planning

• Diversified locations to reduce concentration risk

• Asset ownership provides control over quality, pricing, and occupancy

• Lower dependence on third-party hotel owners

Key takeaways

• Sunday Proptech combines real-estate ownership with hotel operations, giving it a stable and long-term business model in India’s growing hospitality sector.

• Long-term success depends on steady property acquisitions, improvement in RevPAR, and hotel-level profitability.

• Important signals to track include EBITDA growth, occupancy trends, acquisition pace, and overall debt levels.

• As the company grows, technology and well-chosen assets will shape most of the value it creates.