Zostel

ZO Rooms

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]

ZO World

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:

• Zo Trips, a travel planning service that covers flights and local activities, with a projected annual revenue of ₹1,500 crore
• Zo Villas, a network of around 300 vacation homes
• Zo Houses, co-living accommodations aimed at digital nomads and creators
• Zo Digital, an artificial intelligence system designed to provide rewards and community engagement features.[15]

Business Structure and Financials

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]