Moustache Group Rebrands To Include Mid-Range And Luxury Stays

New Brand Structure Addresses Growing Travel Segments

Moustache Group of Hostels changed its brand after 10 years in the hospitality business. It started in 2016 as a backpacker hostel brand focused on creating social spaces for travelers to meet. Now, it has grown to run 20 hostels, 10 mid-range hotels, and 8 boutique luxury stays. They plan to open 100 more properties by 2030. 

At first, Moustache focused on community, affordability, and local experiences, which worked well. Over the past decade, more than 1.5 million travellers have stayed at their places. Meanwhile, travel habits in India have changed a lot. Hostels are still popular, especially with millennials, Gen Z, and solo travellers looking for social stays. The Indian hostel and backpacker market is worth around INR 1,413 crore in 2024.

At the same time, India’s travel market has grown fast. More people are travelling for leisure, business, and short trips to cities and new places. Mid-range hotels are the fastest-growing part of the market, and India will need almost three million more rooms by 2030. Luxury travel is also growing quickly, especially for smaller hotels that offer unique experiences.

To keep up with these changes and traveler needs, Moustache added mid-budget and luxury hotels to its business. But many people still think of Moustache as only a hostel brand. The rebrand helps clear up this confusion and shows what the company really offers now. 

Speaking about the rebranding, Deepak Agarwal, Founder-Director, Moustache Group of Hotels, said, “Travellers today are overwhelmed by options, platforms, and formats. In such a market, the structure itself becomes a competitive advantage. This clear brand architecture will reduce confusion for the consumer and decision friction for the business.”

The refreshed brand structure clearly defines three verticals. Moustache Hostels remain social and community driven. Moustache Select focuses on comfort-first stays for families, professionals, and value-focused travellers. Luxuria by Moustache caters to boutique and experiential luxury stays. Moustache Targets INR 100 crore in revenue by FY 2027, with growth increasingly driven by Select and Luxuria. The company plans to add up to fifty new properties by 2028, with a strong focus on mid-market and boutique luxury formats.

According to Aditya Singh Ranawat, Assistant Vice President, Marketing, “One of the biggest concerns we had was perception. We had evolved beyond hostels, but people still saw us as just a hostel brand. The rebrand closes that gap and removes confusion for the traveller.”

This rebrand marks Moustache’s transition from a single-format brand to a structured hospitality platform designed to serve multiple traveller needs without dilution, improving discoverability, and sharpening its positioning.