Moustache Group of Hotels has announced the launch of its newest backpacker hostel in Gangtok, Sikkim, marking a major step in its aggressive expansion plan for India’s youth-travel market.
With this opening, the company has confirmed that 40+ new hostels will be added by FY 2028 across high-demand locations in Himachal Pradesh, Uttarakhand, Kerala, Tamil Nadu, and Karnataka. These will add to the brand’s existing 18 hostels, strengthening its position as one of India’s fastest-growing ecosystem-driven hostel chains.
The Gangtok launch marks the company’s entry into the Northeast tourism market, which has been witnessing unprecedented domestic and global interest. A recent report by The New York Times listed Assam as the 4th must-visit destination globally, highlighting it as an uncrowded region with rising international recognition and improved accessibilityAccording to figures from the HVS ANAROCK, the northeastern region recorded 12.781 million domestic tourist visits and 0.244 million foreign arrivals in 2024. Air traffic reached a record 11.2 million passengers in 2024, reflecting how improved accessibility is unlocking previously untapped markets.
Explaining the choice of location, Abhishek Khandelwal, Founder and Director, Moustache Group of Hotels, said, “Gangtok is one of the most visited destinations in the Northeast with over 1.6 million domestic travellers arriving in 2023[4]. 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.”
Speaking on the roadmap for the Northeast, Deepak Agarwal, Founder and Director, added, “The Northeast is core to our long-term strategy. We are actively exploring Shillong and Cherrapunji in Meghalaya, Pelling and Yuksom in Sikkim, Tawang in Assam, Dimapur in Nagaland, and Ziro in Arunachal 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.”
Moustache Group of Hotels operates across three core verticals: premium experiential stays under Luxuria by Moustache, mid-budget family and business accommodations through Moustache Select, and backpacker hostels under the Moustache Hostels label. By 2028, the company plans to open more than 100+ new properties across the country including 25 Luxuria properties, 50 Select hotels, and 40+ hostels. Of the projected revenue of INR 200+ crore by 2028, the hostel segment is expected to contribute roughly 11%, with the rest driven by the rapid expansion of the Luxuria and Select portfolios.
