Strategic Expansion into India’s Youth-Travel Market
Moustache Group of Hotels has announced the launch of its newest backpacker hostel in Gangtok, Sikkim, marking a significant milestone in the brand’s rapid expansion across India’s youth and experiential travel segment. The opening signals Moustache’s formal entry into the Northeast tourism market, a region witnessing rising interest from both domestic and international travellers.
The Gangtok hostel strengthens the Group’s growing hostel portfolio while reinforcing its focus on community-led, social and affordable travel experiences designed for modern backpackers.
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Aggressive Growth Plan Through FY 2028
With this launch, Moustache Group of Hotels has confirmed plans to add over 40 new hostels by FY 2028. These upcoming properties will be spread across high-demand leisure and adventure destinations in Himachal Pradesh, Uttarakhand, Kerala, Tamil Nadu and Karnataka.
The new additions will complement the brand’s existing 18 operational hostels, further consolidating Moustache’s position as one of India’s fastest-growing ecosystem-driven hostel chains catering to young, experience-focused travellers.
Northeast Emerges as a High-Potential Tourism Market
The entry into Gangtok aligns with the Northeast’s growing prominence on the global tourism map. A recent report by The New York Times listed Assam as the fourth must-visit destination globally, citing the region’s uncrowded landscapes, increasing international recognition and improved connectivity.
Industry data further supports this momentum. According to HVS ANAROCK, the northeastern region recorded 12.781 million domestic tourist visits and 0.244 million foreign arrivals in 2024. Air traffic in the region reached a record 11.2 million passengers in 2024, underscoring how enhanced infrastructure and accessibility are unlocking previously underexplored destinations.
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Why Gangtok Was Chosen
Explaining the decision to launch in Gangtok, 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. 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.”
Gangtok’s blend of cultural heritage, scenic landscapes and adventure access positions it as a natural entry point for backpacker-focused accommodation in the region.
A Long-Term Vision for the Northeast
Beyond Gangtok, Moustache Group of Hotels has outlined a clear roadmap for expansion across the Northeast. Speaking about the company’s long-term plans, Deepak Agarwal, Founder and Director, said,
“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.”
Building Community-Driven Travel Experiences
Moustache Hostels has built its reputation around creating social, design-forward and community-centric spaces that resonate with young travellers seeking authentic connections and shared experiences. The Gangtok property is positioned to reflect this ethos, serving as a hub for exploration, interaction and cultural exchange in the heart of Sikkim.
Looking Ahead
With the launch of its Gangtok hostel and a robust pipeline planned through FY 2028, Moustache Group of Hotels continues to scale its hostel footprint with a clear focus on emerging destinations and evolving travel preferences. The brand’s expansion into the Northeast marks a decisive step in tapping into one of India’s fastest-growing tourism regions, while staying true to its traveller-first philosophy.
