 | This article contains promotional content .(May 2018) |
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| Company type | Privately held company |
|---|---|
| Industry | Hostel Tourism Backpacker tourism |
| Founded | 2013 |
| Headquarters | Gurgaon |
Area served | Indian subcontinent; mainly India and Nepal |
| Products | Zostel Hostels Zostel Homes Zostel Escape Trusted by Zostel |
| Website | www |
Zostel is a hostel chain with over 95 locations across India and Nepal [1] [2]
Zostel Hospitality Pvt. Ltd was established in August 2013 [3] by seven co-founders, [4] [5] who initiated their venture with the launch of the first Zostel in Jodhpur, Rajasthan on 15 August 2013. [6]
In November 2014, the founders launched a new project called ZO Rooms, which aimed to provide budget-friendly hotel accommodations and aggregate hotel rooms. [7] [8] [9] [10] There were reports that ZO Rooms was acquired by rival OYO Rooms, [11] [12] in an all-stock deal in December 2015, which was later denied by OYO. [13]
Zostel offers various accommodation options such as dormitories and private rooms. [14]
In 2025, on its 12th anniversary, Zostel announced the launch of “Zo World,” a travel-tech platform extending beyond hostel operations. [15] Zo World includes several parts:
Zostel operates through a franchisee-owned, franchisee-operated (FOFO) model, where individual franchisees own and manage each property according to the company’s guidelines. [16] The company charges a commission of 21–30% on booking and food and beverage revenue from its franchisees, and provides operational support and guidance. [16] According to reports, Zostel records annual accommodation bookings of about ₹166 crore (approximately US$20 million), with an estimated year-on-year growth of 40–50%. [16] The strategy of the company is to focus on smaller urban areas across India, including Tier-II, Tier-III, and Tier-IV cities, rather than concentrating only on major tourist hubs. [17]