The Hosteller Scales Rapidly in 2025 on Inventory Expansion and Rising Repeat Demand

Backpacker Hostel Chain Expands to 72 Properties Across 56 Indian Cities

The Hosteller, India’s largest backpacker hostel chain, reported robust growth in 2025, driven by rapid inventory expansion, rising repeat demand and an increasing share of direct bookings.

Between January and December 2025, the brand added 2,100 beds, marking a 72 per cent year-on-year increase in bed inventory. This expansion took the network to 5,100 beds across 72 hostels in 56 cities nationwide. During the year, The Hosteller opened 19 new properties, reflecting a 25 per cent increase in the total number of hostels.

The brand hosted 496,554 guests in 2025, supported by strong domestic travel demand. Guest loyalty emerged as a key highlight, with the repeat guest rate rising to 38.3 per cent, up from 16.4 per cent in 2024, representing 133 per cent year-on-year growth. Direct bookings accounted for 55 per cent of total reservations, indicating higher customer engagement and brand trust.

The Hosteller operates as a self-managed business, retaining full control over guest experience and operational standards. In 2025, self-operated hostels contributed 95 per cent of total revenue, while the remaining 5 per cent came from operational management contracts. A geographically diversified network helped mitigate seasonality, supported by standardised operations, technology-led revenue management and a community-focused approach.

Commenting on the performance, Pranav Dangi, CEO and Founder, The Hosteller, said, “2025 has been a strong year for us. We expanded our network to 56 cities and added 2,100 beds while maintaining operational control across all hostels. The growth in repeat guests and direct bookings demonstrates the trust in our brand and the strength of our community-led, self-operated model.”

Looking ahead, The Hosteller plans to continue expanding across key travel destinations in India, with a focus on strengthening repeat guest engagement, increasing direct bookings and enhancing operational efficiency.