ADVERTISEMENT

Budget hospitality startup Zostel set to expand and open 500 new properties in a span of 2 years
B

Zostel presently has over 60 properties that are a mix of hostels and homestays, and the company plans to raise Rs 10 crore in a funding round from the market.

Budget hospitality firm Zostel, which initially set aside its expansion plans due to the COVID-19 disruption that shook the hospitality industry, announced that it would be getting big on hyper-local domestic travel. 

As reported by ET (1), Dharamveer Singh Chouhan, CEO & Co-founder, said that the chain plans to open 500 new properties over the coming two years, which will be a mix of hostels, homestays, and new products worth Rs 2,500 crore.

Zostel presently has over 60 properties that are a mix of hostels and homestays, and the company plans to raise Rs 10 crore in a funding round from the market. 

Chouhan said that there were more than 4k unique individuals who either wanted to invest or offer their properties. 

He added,

“We are just connecting everybody together so that the whole system works. We are analyzing land banks across the country where vacation homes and hostels could be created.”

Post-COVID travel to bring more opportunities

Zostel properties generate phenomenal yields. If someone takes franchise on a lease as well and invests, their IRR is over 40%. In fact, the break-even is under 18 months.

Currently, 40% of the Zostel supply is open in India, and revenues stand at 25% of the pre-COVID levels. 

The company plans to open up 500 new destinations for short-term travel and the new travel norms that will be showing up post-COVID. Many companies have reduced their office spacing as they give people the freedom to work from anywhere. 

With this, over 50-100% of the staff has the freedom to practice remote working, allowing them to work at any destination in the world with great wifi and electricity, even if ts on the top of the hills. 

+ posts

A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

Note: If you buy something via a link on this page, we might earn a small commission on it.

Saumya Uniyal
Saumya Uniyal
A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Leave A Reply

Please enter your comment!
Please enter your name here

related stories

The china-based threat activity group, RedEcho, targets at least a dozen Indian organizations, including the Indian power sector.

Report: Chinese Hacker Groups Target Indian Organisations Amid the Border Tension

0
Since mid-2020, Chinese State-sponsored groups intruded into the computer networks of at least a dozen Indian state-run organizations, mostly power utilities and load dispatch...
The SEC stated that it has temporarily halted trading in 15 companies amid concerns that their stock prices were artificially inflated.

US Watchdog Halts Trading of 15 Companies, Sharpens Gaze on ‘Suspicious Social Media Activities’

0
The United States security regulators suspended trading in the securities of 15 companies on Friday because of 'questionable trading and social media activity.' It...
Facebook recently launched its short video entertainment format platform known as bars that cater to a specific community called rappers.

How the launch of Facebook’s Bars will be a game changer for aspirants in...

0
The world's hands at entertainment are getting saturated, and there is no doubt about it. This market's global landscape had changed dramatically since the...
The IPO season is here, and many companies have reached for the big deal on the NYSE. DigitalOcean also aims to reach the NYSE boards and introduce their IPO by going public.

DigitalOcean goes public in its first ever IPO aiming for the NYSE

0
With a range of rationales, digital transformations are carried out. Some stem from the need to replace IT systems that have reached the end...
All successful companies need better tools. Here is the list of today's best product management tools to cover all your business requirements.

Essentials Project Tools You Need in 2021

0
Project managers and product managers share similar work responsibilities, which is beyond just sharing similar titles. Both roles work in tandem to successfully deliver...
The Indian public sector is undergoing a new shift. Since time, many of these sectors have worked for the government and made the extra dime public.

How the Privatisation move might put the Modi government afront in public benefit

0
A crisis on an unprecedented scale is facing the Indian banking sector. When more facts are brought to light, the problem becomes peculiar. You...
Disruptors have been challenging big logistics players for years and the shift towards ecommerce has created a fertile ground for logistics startups.

Transformation of Indian Logistics Tech Ecosystem

0
The logistics industry is the backbone of every economy. The growth of the Indian ecommerce sector enabled startups dealing in logistics to expand their...
India's healthcare sector is booming, thus giving many opportunities to establish a unified system that contributes to better health.

India’s healthcare startup ecosystem is booming, as Government prioritises on better systems

0
India is a country that is democratic and It is the government's responsibility to provide primary health care for individuals. India is a large...
ADVERTISEMENT