U.S. Motel 6 Business Is Driving Prism’s Indian IPO, New Filing Shows

Key Points

• The U.S. Motel 6 business (G6 Hospitality) now dominates Prism, generating over half of gross booking value, nearly 84% of revenue from outside India, and more pre-tax profit than the rest of the company combined.
• Roughly 75% of the ~$700 million IPO proceeds will go toward repaying acquisition debt, and reported profits have relied largely on deferred-tax credits and one-off accounting gains rather than recurring operating earnings.
• Valued at $7-8 billion (down from a 2021 peak of $11-12 billion), the India listing offers no liquidity to existing investors like SoftBank or founder Ritesh Agarwal, while G6 faces leadership turnover and India-centric restructuring.

Summary

Oyo's parent company, Prism, is mounting its third IPO attempt, targeting roughly $700 million at a $7-8 billion valuation on India's home market — well below its 2021 peak of $11-12 billion but a strong recovery from its $2.4 billion mark in August 2024. The updated prospectus reveals a fundamentally transformed business: the U.S. now drives more than half of gross booking value and nearly 84% of revenue comes from outside India, with the 2023 acquisition of G6 Hospitality (owner of Motel 6) now generating more pre-tax profit than the rest of Prism combined. About three-quarters of IPO proceeds (~$527 million) will repay debt taken on to fund that acquisition, as heavy finance costs of $115 million dwarfed pre-tax profit. Notably, Prism's reported profitability has leaned on deferred-tax credits and one-time accounting gains rather than recurring operating earnings, and existing investors including SoftBank (~40%) and founder Ritesh Agarwal are not selling shares. Meanwhile, G6 is undergoing significant integration upheaval, including leadership turnover, U.S. headcount cuts, and the centralization of back-office functions in India.