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Prism, the parent company of OYO, has begun investor roadshows for its proposed INR 6,650 crore initial public offering (IPO), with discussions largely centred on its acquisition-led growth strategy. An analysis of the company's financials shows that its two largest acquisitions,G6 Hospitality in the US and Europe's OVH currently contribute only about 20% of its EBITDA, while nearly 80% has been generated through operational improvements after integration. The company has also reported strong growth in bookings, profitability and international operations, particularly in the US and Europe, ahead of its planned market debut.
Prism has started investor roadshows for its proposed INR 6,650 crore initial public offering (IPO), with the company's acquisition strategy emerging as one of the key discussion points during interactions with institutional investors. The roadshows are aimed at presenting the company's business model, financial performance and future growth plans ahead of the public issue.
An analysis of Prism's financial performance shows that its two biggest acquisitions US-based G6 Hospitality, acquired in 2024, and Europe's OVH, formerly known as Leisure Group, acquired in 2019 currently contribute only around 20% of the company's EBITDA (earnings before interest, taxes, depreciation and amortisation). The remaining nearly 80% of its earnings has been generated after these businesses were integrated into Prism's operating platform.
Before joining Prism, G6 Hospitality and OVH together generated nearly INR 600 crore in EBITDA. OVH had reported an EBITDA of around INR 190 crore in 2018, the financial year before its acquisition, while G6 Hospitality accounted for the remaining contribution.
Against Prism's annualised FY26 EBITDA of around INR 2,800 crore, nearly INR 2,200 crore has been created through post-acquisition operational improvements rather than inherited earnings from the acquired companies.
Industry experts said the acquisitions helped Prism, the parent company of OYO, establish a larger presence in important international markets. However, they noted that the company's current profitability has largely been driven by the improvements made after integrating these businesses into its operations.
Following the acquisitions, Prism brought the businesses onto a common operating platform covering pricing, revenue management, technology, distribution, procurement and customer operations. The company said this integration improved operating efficiency, created better operating leverage and strengthened overall business performance across its portfolio.
The company's financial performance has also improved considerably over the past year. According to its updated draft red herring prospectus (DRHP), Prism reported a Global Gross Booking Value (GBV) of INR 22,946 crore during the first nine months ended December 31, 2025, surpassing the INR 16,279 crore recorded during the entire FY25.
During the same period, EBITDA more than doubled to INR 2,127 crore from INR 953 crore reported in FY25. Profit after tax also increased to INR 748 crore from INR 245 crore in the previous financial year.
As of December 31, 2025, Prism operated 43 brands across more than 35 countries. Its global portfolio included 24,303 hotels, 124,668 homes and 144,583 listings, reflecting the company's expanding international footprint.
The US has emerged as Prism's largest growth market following the acquisition of G6 Hospitality, which owns and operates the Motel 6 and Studio 6 hotel brands across the US and Canada. The company's US business recorded a Gross Booking Value of INR 12,022.51 crore during the first nine months of FY26, compared with INR 4,712.83 crore reported during the entire FY25. The US business accounted for 52.39% of Prism's global GBV during the period.
In Europe, Prism continued to expand its homes and vacation rental business. The number of properties under its management increased to 269,251 as of December 31, 2025, from 208,901 as of March 31, 2025. Its European portfolio includes brands such as Belvilla, DanCenter and CheckMyGuest.
The latest analysis comes as Prism moves closer to its stock market debut. The company filed updated draft papers with the Securities and Exchange Board of India (SEBI) in late June for its proposed INR 6,650 crore IPO. The offering will consist entirely of a fresh issue of shares, with the proceeds expected to support the company's future expansion plans and strengthen its balance sheet.
Source PTI
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