Moustache Group of Hotels launches its first property in the Northeast with a backpacker hostel in Gangtok, signalling deeper expansion into emerging youth-travel markets across India.
As domestic travel patterns continue to shift toward experience-led and community-driven stays, hostel brands are increasingly targeting destinations beyond traditional circuits. Moustache Group of Hotels’ entry into the Northeast with its Gangtok hostel reflects this trend, aligning youth travel demand with regions gaining improved connectivity and rising national and international attention.
The Gangtok launch marks the brand’s debut in Sikkim and the wider Northeast, a region that is witnessing growing interest from backpackers, solo travellers and young experiential tourists.
With the new opening, Moustache Group confirms plans to add more than 40 hostels by FY 2028, expanding its hostel portfolio from the current 18 properties. The upcoming hostels will be spread across Himachal Pradesh, Uttarakhand, Kerala, Tamil Nadu and Karnataka, strengthening the brand’s pan-India footprint.
The Northeast has emerged as a key growth market, supported by rising tourist arrivals and improved air connectivity. Industry data indicates strong growth in both domestic and international visitation, reinforcing the region’s potential for scalable hostel-led development.
Abhishek Khandelwal, Founder and Director, Moustache Group of Hotels, says Gangtok offers the right mix of culture, community and adventure to anchor the brand’s Northeast presence. He adds that the destination’s strong domestic footfall and evolving traveller profile make it a natural fit for the Moustache hostel concept.
Deepak Agarwal, Founder and Director, highlights that the Northeast is central to the group’s long-term roadmap. He notes that destinations including Shillong, Cherrapunji, Pelling, Yuksom, Tawang, Dimapur and Ziro are under evaluation, driven by the region’s growing backpacker culture and demand for social, accessible accommodation formats.
Moustache Group operates across three verticals — Luxuria by Moustache (premium experiential stays), Moustache Select (mid-budget family and business hotels), and Moustache Hostels (backpacker accommodation).
By 2028, the group plans to open 100+ new properties nationwide, including 25 Luxuria hotels, 50 Select properties and 40+ hostels. While hostels are expected to contribute around 11% of projected revenue, the segment remains critical for brand visibility, youth engagement and destination penetration.
With plans to scale revenue to INR 205 crore by 2028, Moustache Group’s Northeast entry underscores how hostel brands are shaping travel demand in underexplored regions. For the trade, the expansion highlights growing opportunities in backpacker tourism, regional dispersal and experience-led accommodation across India’s emerging destinations.
