Built for ambitious,

forward thinking investors

Tailored for ambitious, forward-thinking investors looking to tap into India's booming hospitality sector, this is your chance. Invest in The Hosteller, India’s largest self-operated backpacker hostel chain, and secure remarkable returns on your investment.

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Present deals

A quick snapshot of I&P deals from the present

Location for INR 25 Lacs

9

Rooms

70%

Occupancy

25L

Investment

21.2%

IRR

Location for INR 50 Lacs

16

Rooms

65%

Occupancy

50L

Investment

22.6%

IRR

Location for INR 75 Lacs

20

Rooms

68%

Occupancy

75L

Investment

22.4%

IRR

How it works?

Our operational model is quite straightforward

Our real estate managers identify commercial properties in various high demand destinations across the country to be converted into amazing backpacker hostels.
Once the project is taken on long term lease, our design experts and architects initiates a 60-90 days rigorous transformation activity to uplift the infrastructure as per our standerdisation playbook.We require funds from you to do this exercise.
The project is launched for operations, thereby giving you monthly returns.

Discover the power of your

investment with our ROI calculator

After a 3 month moratorium, payments to the investor are made on a monthly basis.

Investment amount

Investment period

Total earnings in 5 years

₹0

IRR

18-20%

Monthly returns

₹0

Learn how we estimate your returns

Why are we the best choice for

your investment?

Here is a comparative analysis of various investment options in the market, showing why partnering with us is a smart, strategic move for your portfolio.

Asset class
Attracted yield
Cash flow
Low volatility
Inflation hedge
Regular capital repayment
Complementary add-ons
Average annual return (IRR)
TH I&P program
18-24%
Private equity
15%
Mutual funds
12%
Real estate
10%
Fixed deposit
6%

The Hosteller I&P advantage

Monthly cashflow

Phenomenal ROI

Tax saving

Fractional ownership

Securities backed

Hasslefree transaction

Easy tracking

Add-on advantages

Past deals

A quick snapshot of I&P deals from the past

Rishikesh, Uttarakhand

The Hosteller Rishikesh Tapovan

25L

Investment

8

Rooms

72%

Occupancy

22.7%

IRR

Jaipur, Rajasthan

The Hosteller Jaipur

50L

Investment

21

Rooms

76%

Occupancy

22.8%

IRR

Shimla, Himachal Pradesh

The Hosteller Shimla

40L

Investment

21

Rooms

85%

Occupancy

24.7%

IRR

FAQs

The I&P program allows investors to invest in the fixed assets needed during the transformation of a property and lease it to The Hosteller for a period of 5 years. The estimated transformation cost per property (with 20 rooms) is approximately INR 50 lakhs.
Once the property goes live after the transformation, the investor's return is tied to a specific percentage of the monthly revenue. Payouts to the investor are made on a monthly basis, following an initial 3-month moratorium.
The investment tenure is 5 years, or 60 months.
Investors can expect an 8-30% IRR p.a. (internal rate of return) on a regular cash flow basis. Click here to check returns calculation for a sample location.
Returns are paid monthly, on or before the 10th of each month.
Investors can track the revenue through our cloud-based revenue tracking software, with updates available on a daily, weekly, or monthly basis.
The agreement will be an "Asset Lease & Buyback Agreement." for a Click here sample agreement.
There is no cap on the returns an investor can make. Since returns are tied to monthly revenue, as the brand grows and demand increases, overall revenues will rise, benefiting the investor. Additionally, because the investor’s return is linked to the property’s revenue, they don’t need to worry about profit or loss from the property.
Yes, we currently have 12 properties operating under this model, with investors earning upwards of 20% IRR p.a.
No, the investor can sit back and relax. The Hosteller handles everything from identifying the property and transforming it into a top-notch backpacker hostel to operating it throughout the agreement period, managing sales, marketing, HR, customer service, and more.
Yes, apart from tax savings, easy return tracking, and the opportunity to reinvest returns in other properties, The Hosteller offers privilege membership access to its network of properties, experiences, and travel/lifestyle meetups. Investors can stay at any property within the network for up to 15 nights per year at absolutely no cost.
The company has raised USD 1.5M so far and is currently in the process of raising a USD 15M Series A round.

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