New Delhi, Jul 24: As investor roadshows for Prism's proposed IPO begin this week, the spotlight is on its acquisition strategy, but its two biggest acquisitions contribute only about 20 per cent of current profitability, with the rest generated after integration.
The roadshows allow the company's management to present its business strategy, financial performance and growth plans to institutional investors ahead of the Rs 6,650 crore initial public offering (IPO).
The company's two largest acquisitions -- US-based G6 Hospitality in 2024 and Europe's OVH (formerly Leisure Group) in 2019 -- together account for only about one-fifth of Prism's current EBITDA (earnings before interest, taxes, depreciation and amortisation) according to an analysis of its financials.
Before becoming part of Prism, G6 Hospitality and OVH together generated around Rs 600 crore of EBITDA. OVH reported an EBITDA of about Rs 190 crore in 2018, the year before its acquisition, while G6 Hospitality contributed the balance.
Against Prism's annualised FY26 EBITDA of about Rs 2,800 crore, nearly Rs 2,200 crore, or almost 80 per cent of its current earnings, has been generated after the acquired businesses were integrated into the company's operating platform.
Industry experts said the acquisitions provided Prism, the parent of OYO, with immediate scale in key international markets, but most of the company's current profitability has been driven by operational improvements following integration.
The company integrated the acquired businesses onto a common operating platform covering pricing, revenue management, technology, distribution, procurement and customer operations, enabling operating leverage, and efficiency gains across the portfolio.
The company's financial performance has also improved significantly.
For the nine months ended December 31, 2025, Prism reported Global Gross Booking Value (GBV) of Rs 22,946 crore, surpassing the Rs 16,279 crore recorded in entire FY25.
EBITDA more than doubled to Rs 2,127 crore during the nine-month period from Rs 953 crore in FY25, while profit after tax rose to Rs 748 crore from Rs 245 crore, according to the draft papers.
As of December 31, 2025, Prism operated 43 brands across more than 35 countries, with a network of 24,303 hotels, 124,668 homes and 144,583 listings.
The company's US business has emerged as a key growth driver following the acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 brands in the US and Canada.
Its US GBV stood at Rs 12,022.51 crore in the first nine months of FY26, up from Rs 4,712.83 crore reported for the entire FY25. The US business contributed 52.39 percent of Prism's global GBV during the period.
In Europe, Prism expanded its homes and listings business to 269,251 properties 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 analysis comes as Prism prepares for its public market debut. The company filed updated draft papers with markets regulator Sebi in late June to raise Rs 6,650 crore through its IPO, comprising entirely a fresh issue of shares.
(Except for the headline, this article has not been edited by FPJ's editorial team and auto-generated from an agency feed.)
