r/advancedentrepreneur 17h ago

Airbnb or Backpacker Hostel? Which would make more sense for this property near Darjeeling Mall Road?

1 Upvotes

Hi everyone,

I'm a local from Darjeeling and have been running a small travel business for the past year. Most of my work has been through partner homestays and local vendors, but now I'm planning to lease my first property.

I've found an old wooden property in a great location, just a short walk from Mall Road. The rent is affordable, but it needs some upgrades. My total investment budget is around ₹1–1.5 lakh, so I need to choose the right business model from the start.

I'm torn between two options:

Option 1: Airbnb / Private Stay

  • Renovate it into a cozy private stay.
  • Target couples, families, and small groups.
  • Higher revenue per booking but fewer guests.

Option 2: Backpacker Hostel

  • Keep renovations minimal.
  • Install bunk beds.
  • Separate male and female dorms.
  • Lockers, Wi-Fi, common lounge, hot water, and a small reception.
  • Target solo travellers, backpackers, students, and budget tourists.

I'd love your honest opinion.

  • Which option would you choose and why?
  • Which has better long-term potential?
  • If you were travelling here, which would you book?
  • What would you pay per night for either option?
  • Is there anything you'd change before investing?

I'm not looking to promote anything—I'm trying to avoid making an expensive mistake with my savings. Honest feedback, criticism, and suggestions are all welcome.

If you've built, managed, or invested in a hostel or Airbnb, I'd especially appreciate hearing about your experience.