Jaipur-headquartered hospitality operator Moustache Escapes is gearing up for a substantial expansion in the boutique luxury category over the next two years. The company, which began its journey in 2016 as a hostel-focused brand, has steadily diversified into the boutique luxury and mid-market space post-Covid. It now operates 33 properties across three verticals.
Co-founders and directors Abhishek Khandelwal and Deepak Agarwal said that the company plans to channel its efforts toward expanding the ‘Luxuria by Moustache’ brand in the coming years.
The company introduced the Luxuria vertical in 2021 by simultaneously signing three properties across Udaipur, Rishikesh, and Goa. At present, Luxuria operates five boutique properties, with the most recent one located in Jawai, Rajasthan, which opened last month.
Khandelwal added, “We have signed five more properties under the Luxuria brand portfolio already. These are in places like Varanasi, Kasaul, Mohan Chatti (Rishikesh), Gokharna, and Shoja (Himachal Pradesh),” further emphasizing, “Luxuria by Moustache is a focus segment for us going forward.”
Meanwhile, Agarwal shared the growth roadmap, stating that the company aims to add 25 more hotels by 2027, of which at least 10 will belong to the Luxuria portfolio. Furthermore, the founders have set a revenue target of ₹100 crore by FY 2027.
Currently, Moustache Escapes operates 20 Moustache Hostels, 5 Luxuria by Moustache hotels, and 8 Moustache Select properties. The company launched the Moustache Select category earlier this year to cater to the mid-premium segment.
Explaining the positioning of Moustache Hostels, Khandelwal said, “In Moustache Hostels, we try to create a travel community through different events and activities. We strictly don’t allow families and children in our hostels.” These properties are located largely in leisure-heavy destinations and select metros like Delhi and Mumbai.
Furthermore, the company runs on an asset-light model, operating properties through a mix of long-term lease agreements, management contracts, and franchise partnerships. The founders highlighted that the choice of operating model depends on the size of the property, its location, and the profile of the property owner.
Considering intense competition from leading domestic and global luxury hotel chains, Moustache Escapes intends to focus on intimate boutique properties with 10 rooms or more, positioned in high-demand locations that can command better average daily rates (ADR).
The founders also believe that their non-hospitality background gives them a strategic advantage. Their experience in accounting, international consulting, and advisory services helps them rethink and re-engineer hotel operations more quickly than traditional hospitality players.
Agarwal added, “We invest a lot of our time and energy in building a strong, trained team and processes. We also invest in technology to ensure consistency in service delivery and monitor it centrally.”
