Moustache Group of Hotels Sets Bold Expansion Pace with New Manali Launch and 50-Property Vision by 2028
Moustache Group of Hotels has expanded its portfolio with a new Select category property in Manali, marking a key milestone in its transition from hostel-focused stays to a multi-segment hospitality brand.
India’s growing appetite for domestic travel has fueled a new wave of hotel development—and one brand capturing this momentum with strategic clarity is the Moustache Group of Hotels. With the opening of its latest Select property in Manali, the company has announced an ambitious roadmap: 50 additional properties by 2028, primarily concentrated across emerging leisure and adventure destinations in northern India.
This new launch marks a pivotal chapter for the group as it transitions from hostel-centric beginnings to a multi-segment hospitality player catering to mid-scale, premium, and experiential travel audiences.
Why Manali Was the Starting Point
Manali remains one of India’s most resilient hill destinations—not just seasonally, but year-round.
Recent tourism trends indicate:
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Over 15,000 visitors arriving daily
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Surging demand post-festive season
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Climate-driven travel with tourists anticipating early winter snowfall
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Easier road accessibility, especially from Chandigarh and Delhi NCR
Speaking on the strategic choice of Manali, Abhishek Khandelwal, Founder and Director, explained that the destination offers consistent occupancy, price stability, and a diverse traveller mix—from honeymooners and families to adventure backpackers and corporate getaways.
With 49 keys, the new hotel strengthens the group's mid-budget portfolio and aligns with shifting preferences toward value-driven yet quality accommodation.
Growth Potential of the Select Segment
The Manali launch is part of the group’s expanding Select vertical—a mid-budget offering positioned between luxury stays and hostel-style travel.
Current footprint:
| Category | Number of Properties |
|---|---|
| Total properties across India | 33+ |
| States covered | 11 |
| Select category hotels | 5 (now expanded with Manali) |
Existing Select properties already operate in:
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Mukteshwar
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Naukuchiatal
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Udaipur
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Other leisure hubs witnessing high domestic tourism
Co-founder Deepak Agarwal noted that the Select category is expected to generate 40–50% of the company's revenue, contributing significantly to the projected ₹100 crore topline by 2026. The brand also anticipates a 10% seasonal uptick this year alone—driven by holiday travel and a steady shift toward experiential hill stays.
Strategic Expansion: Destinations to Watch
By 2028, the brand aims to plant new properties in travel hotspots including:
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Kasol
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Shimla
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McLeodganj
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Nainital
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Other high-growth tourist belts across the Himalayan and Uttarakhand regions
This expansion aligns with broader India tourism forecasts. Analysts estimate:
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$26.24 billion market value in 2025
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Growth to $54.34 billion by 2030
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CAGR of approximately 15-16%
With rising domestic travel demand and better infrastructure such as highways, tunnels, and airports, hill destinations are entering their most commercially promising era yet.
Evolution of the Brand: From Backpacking to Multi-Tier Hospitality
The Moustache Group has evolved from a hostel-only concept to a diversified hospitality umbrella featuring:
| Vertical | Target Audience | Positioning |
|---|---|---|
| Backpacker Hostels | Solo travelers & youth | Budget & social |
| Luxuria | Luxury & experiential stays | High-value premium travel |
| Select | Families, couples, corporates | Mid-scale comfort & consistency |
This new focus signals the brand’s intent to build loyalty, scalability, and repeat travel value—especially in the fast-growing mid-market category.
What This Means for India’s Hospitality Landscape
Moustache Group’s move mirrors a larger industry sentiment—domestic travel is no longer a seasonal activity; it’s becoming a lifestyle behavior.
With millennials, remote workers, and weekend travelers driving demand, mid-budget operators are well-set to win market share—if they offer consistency, local flavor, and competitive pricing.
Conclusion
The launch of the Select property in Manali is not just another hotel opening—it marks the beginning of a larger expansion blueprint that reflects confidence in India’s travel economy. With plans to open 50 more properties by 2028, the Moustache Group is shaping itself into a formidable hospitality player across India’s most sought-after leisure circuits.
As tourism continues bouncing back stronger than ever, this may well be the decade where Indian mid-scale hotel brands rise to global hospitality relevance.
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