Moustache Group of Hotels Expands Into Gangtok, Sikkim, Signalling Aggressive Growth Strategy in India’s Backpacker Hostel Market

Published on December 15, 2025

Moustache Group of Hotels has opened a new backpacker hostel in Gangtok, Sikkim, as a bold move to strengthen its presence in India’s youth travel industry. This move is part of the company’s aggressive expansion strategy, which aims to open 40 or more new hostels across the country by FY 2028. The opening is a significant milestone for the hotel group, particularly as it enters the highly promising Northeast tourism market, which is seeing increased domestic and international interest.

A Strategic Move Into India’s Thriving Northeast Tourism Market

Moustache’s entry into the Northeast is a strategic one, tapping into a region that has seen significant tourism growth. Gangtok, the capital of Sikkim, was chosen as the location for this new venture, as it is one of the most visited destinations in the Northeast. In 2023, over 1.6 million domestic travelers visited Gangtok, a testament to its popularity as a travel hotspot. The city’s mix of adventure, culture, and community made it an ideal launchpad for the company’s first hostel in the region.

The Northeast has garnered significant attention in recent years. With Assam being named the 4th must-visit destination globally by The New York Times, the region has become a rising star in the global tourism scene. Additionally, improved connectivity and accessibility have driven both domestic and international traffic, with 12.781 million domestic visits and 0.244 million foreign arrivals recorded in 2024. Air traffic to the region has also increased significantly, reaching a record 11.2 million passengers, further highlighting the increasing accessibility of previously untapped markets.

Expansion Plans for the Future: A Regional Growth Strategy

Moustache Group’s decision to open a hostel in Gangtok is just the beginning of its ambitious expansion plans. The company has made it clear that it is committed to establishing a strong foothold in the Northeast, a region it views as a critical component of its long-term strategy. In addition to Gangtok, Moustache is actively exploring other potential locations in the region, including Shillong and Cherrapunji in Meghalaya, Pelling and Yuksom in Sikkim, Tawang in Assam, Dimapur in Nagaland, and Ziro in Arunachal Pradesh.

These locations were selected based on their growing backpacker culture, making them a natural fit for Moustache’s brand. With a focus on accessibility, social interaction, and a traveller-first approach, the company plans to establish more hostels in these emerging destinations, each catering to the needs of a dynamic and youthful audience. As these locations continue to gain popularity, Moustache aims to be a leading player in the hostel market, offering affordable and social accommodations to the growing number of backpackers and adventure travelers flocking to the region.

Sikkim’s Appeal: Culture, Adventure, and Community

For Moustache, Gangtok’s appeal lies not only in its popularity but also in its rich cultural heritage, vibrant community, and the range of adventure activities it offers. The city has become a hub for travelers seeking unique experiences, from trekking in the nearby hills to exploring Buddhist monasteries and engaging with the local culture. For backpackers, Gangtok provides the perfect mix of natural beauty and cultural immersion, making it a sought-after destination for young travelers.

The launch of Moustache’s new hostel is expected to tap into the existing traveller base while attracting a new generation of backpackers seeking affordable, community-driven accommodation options. The company has designed its hostels with a focus on creating a social environment where travelers can connect, share experiences, and build a sense of community, which is an important aspect of the backpacker culture.

Growing Interest in Northeast India’s Backpacker Culture

The growing backpacker culture in Northeast India is a trend that Moustache is keen to capitalize on. As more young travelers seek off-the-beaten-path destinations, the Northeast has emerged as a region with immense potential. The presence of mountains, rivers, and unspoiled natural beauty offers a wide range of activities for adventure-seeking travelers. Additionally, the region’s rich cultural diversity and history provide a unique experience that cannot be found in more mainstream destinations.

The increased accessibility of these destinations, thanks to better infrastructure and air connectivity, has played a crucial role in this growth. More and more travelers are venturing into the Northeast to explore its pristine landscapes, vibrant cultures, and untouched beauty. As the region continues to gain recognition, Moustache’s expansion into these areas reflects the growing demand for affordable, traveller-friendly accommodations.

Moustache’s Vision for the Future of Youth Travel in India

Moustache Group’s expansion plans reflect the company’s commitment to becoming a major player in India’s rapidly growing youth-travel market. With its focus on affordability, accessibility, and community engagement, Moustache is positioning itself as a go-to brand for backpackers and young travelers seeking immersive experiences. By adding 40+ new hostels by FY 2028, Moustache aims to establish a widespread network across high-demand locations in India, ensuring that young travelers have access to affordable, social, and well-located accommodations wherever they go.

The company’s entry into the Northeast is just the beginning. With an eye on emerging destinations, Moustache is actively shaping the future of youth travel in India, providing unique experiences that cater to the evolving needs of modern travelers. As the market continues to grow, the demand for affordable, community-driven accommodation options is only set to increase, and Moustache is ready to meet that demand head-on.

Conclusion

Moustache Group of Hotels’ entry into Gangtok marks a significant milestone in its expansion strategy, especially as it enters the burgeoning Northeast tourism market. The company’s intention to open 40 or more new hostels by FY 2028 demonstrates its commitment to becoming a leader in India’s backpacker hostel market. With a focus on affordability, accessibility, and community, Moustache is well-positioned to meet the growing demand for social accommodations in India’s most popular and emerging destinations.

[Image Source: Moustache Escapes]