Budget and experiential hospitality player Moustache Group of Hotels nearly doubled its revenue in the first quarter of FY27, reporting ₹18.34 crore compared to ₹9.3 crore in the corresponding period last year, reflecting a 97 per cent year-on-year increase. The company also closed FY26 with a net profit of ₹4 crore, driven by higher occupancies, portfolio expansion and strong demand for its mid-market Select hotels.
The group currently operates 37 properties across three brands—20 Moustache Hostels, 10 Moustache Select hotels and seven Luxuria by Moustache properties—catering to diverse traveller segments ranging from backpackers to premium leisure guests.
Moustache Select emerged as the strongest-performing vertical during the quarter, with Uttarakhand leading demand. Family travellers accounted for the largest share of guests, while couple stays also increased across the portfolio. Key mountain destinations including Nainital, Mussoorie, McLeodGanj and Shoja delivered robust occupancy levels during the summer season, outperforming the same period last year.
As part of its growth strategy, the company added two new properties in Q1 FY27—Moustache Select Rishikesh Mohanchatti and Moustache Hostel Lonavala—following the launch of Moustache Hostel Nainital and Moustache Select Nainital in March. The additions have strengthened the group’s presence in Uttarakhand and Maharashtra while expanding its reach across multiple traveller categories.
Looking ahead, Moustache plans to add 80 new properties by 2030 through an asset-light, destination-led expansion model. The company is also preparing for a fundraise and intends to focus on faster stabilisation of new assets and improved investment returns.
“Revenue growth is encouraging, but the next phase must be driven by financial discipline. We have defined budgets across functions, set clear return expectations for every property and will continue to scale through an asset-light model,” said Deepak Agarwal, Co-Founder and Director, Moustache Group of Hotels.
With a large share of its portfolio concentrated in North India, the group is now eyeing South India as a key growth market in its next phase of expansion.
