OYO’s premium brand, Sunday Hotels, is gearing up for significant expansion. Its parent company, Prism, is planning to add 40 new upscale properties across India by March 2026. These are to be 4-star and 5-star hotels, and the expansion includes both metro cities and non-metro locations. The goal is to tap into growing demand for premium travel within domestic circuits, both for business and leisure.
The plan highlights a greater emphasis on high-quality stays with service standards, aesthetics, amenities, and local character. Sunday properties will mix urban centres and tourism destinations, including religious sites and wildlife reserves. Locations expected to contribute significantly include Gujarat, Uttar Pradesh, and Rajasthan – which together may account for over 40% of the new inventory. Meanwhile, big metro hubs like Mumbai, Hyderabad, Chennai, Bengaluru, Kolkata, and Raipur are also on the radar for new Sunday hotel openings.
Strategic Motives Behind the Move
A key motive for this expansion is India’s evolving traveler profile. More domestic tourists now seek premium hospitality – not just the basics. They’re looking for hotels with strong design, comfort, local flavour, and amenities like wellness rooms, curated F&B, and upscale common areas. Sunday Hotels appears to be responding to this by positioning itself between budget / mid-range and luxury. The brand wants to offer value and elevated experiences without the full cost of luxury properties.
Another factor is geography. Non-metro cities and tourist circuits are receiving more attention as travellers seek quieter getaways or cultural immersion outside crowded city centres. By placing many of the new properties in wildlife areas, pilgrimage destinations, and emerging tourist zones, Sunday Hotels is betting that this mix will attract both business travellers and experience-seeking tourists. This spread also diversifies risk: if one market slows, others may offset.
Implications & What to Watch
For travel lovers, the expansion means more choice. Premium stays in places that might previously have had fewer options can improve accessibility to upscale travel. Small-market destinations will benefit from improved lodging infrastructure, which could raise local tourism, create jobs, and boost local economies.
However, maintaining quality will be vital. Upscale travellers have high expectations for service, amenities, design, food, and cleanliness. Sunday’s ability to deliver on those consistently across 40 properties in diverse locations will be a test. Also important are brand differentiation and local authenticity – if design and service feel generic, the premium positioning may be diluted.
Business-wise, this move suggests a strong bet ahead of Prism’s IPO and global expansion plans. Sunday Hotels will likely become a key showcase for what the group can do in high-end hospitality. For competitors in India’s upscale hotel segment, Sunday’s growth will raise the bar.
Overall, Sunday Hotels’ planned expansion signals that premium hospitality in India is accelerating. The blend of metro and non-metro growth, combined with focus on both design and service, shows the company believes there is ample room for upscale lodging. If the execution is good, travellers will have more exciting hotel options; and India’s hospitality industry will get a boost in segments that link travel, luxury, and regional discovery.
