Moustache Group enters northeast with Gangtok hostel

40 new hostels to be added to network

Moustache Group of Hotels has started its latest backpacker hostel in Gangtok, Sikkim, signalling entry into Northeast India's booming youth-travel market.

Moustache Group of Hotels, a unit of India Hostels,  has started its latest backpacker hostel in Gangtok, capital of Sikkim, as part of its ambitious expansion into India’s youth-travel market.

In a press statement, the hospitality firm says that it has committed to adding over 40 new hostels by FY 2028 in high-demand destinations, including Himachal Pradesh, Uttarakhand, Kerala, Tamil Nadu and Karnataka.

It adds that this will expand the brand’s current portfolio of 18 hostels, cementing its status as one of India’s fastest-growing ecosystem-driven hostel chains.

According to the statement, the Gangtok launch marks Moustache Group’s entry into Northeast India, a region drawing surging domestic and global interest. HVS Anarock data shows 12.78 million domestic and 244,000 foreign tourists in 2024 and regional air traffic hit a record 11.2 million passengers, boosting access to these emerging markets, it says.

“Gangtok is one of the most visited destinations in the Northeast with over 1.6 million domestic travellers arriving in 2023. For Moustache, Gangtok offered the right launchpad for this region because it brings culture, community, and adventure into one place. We see a thriving traveller base here and this hostel is built to serve that energy,” says Abhishek Khandelwal, Founder and Director, Moustache Group of Hotels.

Also Read: Kailash Mansarovar Yatra to resume in June via Nathula Pass in Sikkim

“The Northeast is core to our long-term strategy. We are actively exploring Shillong and Cherrapunji in Meghalaya, Pelling and Yuksom in Sikkim, Tawang and Ziro in Arunachal Pradesh and Dimapur in Nagaland as our next potential destinations. These locations have a growing backpacker culture which makes them a natural fit for Moustache Hostels. Our Hostels vertical will continue to lead this push since it is designed to be accessible, social, and traveller-first,” says Deepak Agarwal, Founder and Director.

The statement adds that by 2028, the company plans to open more than 100+ new properties across the country including 25 Luxuria properties, 50 Select hotels, and over 40 hostels. Of the projected revenue of INR 2 billion by 2028, the hostel segment is expected to contribute roughly 11 pc, with the rest driven by the rapid expansion of the Luxuria and Select portfolios.