Moustache Group of Hotels Announces Rebrand and 2030 Expansion Targets
The Jaipur-headquartered Moustache Group of Hotels has officially transitioned into a multi-format hospitality powerhouse, moving beyond its decade-long identity as a backpacker-focused hostel chain.
Following its 10th anniversary, the group announced a comprehensive rebranding designed to capture a wider share of India's rapidly expanding travel market. The company is now eyeing an aggressive growth trajectory, aiming to operate **100 additional properties by 2030**.
This expansion is backed by a target of **₹100 crore in revenue by FY 2027**. The strategy shifts focus from a single-format model to a structured architecture with three distinct verticals:
**Moustache Hostels**
Continuing the brand’s original mission, this vertical remains social and community-driven, targeting the backpacker and solo traveler segment.
**Moustache Select**
A comfort-first category designed for families, professionals, and value-focused travelers. This mid-market segment is currently the fastest-growing in Indian hospitality.
**Luxuria by Moustache**
A premium vertical catering to boutique and experiential luxury stays, focusing on high-value guest experiences in unique locations.
The group’s current portfolio includes **20 hostels, 10 mid-market hotels, and 8 boutique luxury stays**. To reach its long-term goals, Moustache plans to add **50 new properties by 2028**, with a heavy emphasis on northern tourist hubs like Kasol, Shimla, and Manali.
The rebranding comes at a pivotal time for the Indian hospitality sector. Market data for early 2026 shows a shift toward high-value, domestic-led demand. Pan-India hotel occupancy is stabilizing in the **72% to 74% range**, while average room rates (ARR) for premium stays have climbed to between **₹8,200 and ₹8,500**.
Industry analysts highlight that the mid-scale segment is currently the most resilient, with a projected requirement for **3 million additional rooms by 2030**. Moustache’s pivot aligns with this trend, as the company expects its Select and Luxuria verticals to drive nearly **50% of its total revenue** in the coming years.
The broader market environment also reflects new tailwinds. The Union Budget 2026 has introduced a National Institute of Hospitality to address talent shortages and focused on developing **50 strategic destinations**.
With domestic travel now accounting for over **85% of total hotel demand**, the group's focus on diversifying beyond traditional hostels allows it to mitigate market confusion and capture higher margins in the premium and mid-range sectors.