Guwahati: With Guwahati emerging as a major education and commercial hub in the Northeast Indian region, accommodation for the hundreds of thousands settling here each year has become a very lucrative profession. Business North East recently reached out to one of the established hostel brands running 5 branches in the city to understand how these business models work.

Established in 2021 amidst the uncertainties of the COVID-19 pandemic, 'Uptown' entered the market with a modest starting price of Rs 7500 for its hostellers, prioritizing sustainability over immediate profits, Sandeep Rajkhowa, founder of the establishment, told this platform. "The journey from a single campus with a 50-bedroom capacity to contemplating a multi-million rupee expansion underscores Uptown's ambition and vision for growth", he said, adding, "While the company has successfully raised capital through debt financing, it seeks broader governmental recognition to access additional support and incentives crucial for its expansion plans."

Recognizing the need to balance margins and competitiveness, the company has incrementally raised its starting price to Rs 9500. According to Rajkhowa, Uptown's strategic approach extends beyond mere profit margins, with a keen focus on capturing a discerning clientele accustomed to luxury and premium amenities. "The company's ethos revolves around creating an ambiance where guests feel valued and catered to", he said.

Despite being acknowledged by Startup India and registered under MSME, Uptown faces hurdles in accessing certain financial instruments due to the lack of industry recognition. The company's leadership is advocating for governmental acknowledgment of the hostel sector as an industry, highlighting the sector's potential for economic growth and employment generation.

"We consider that the ultimate measure of achievement is the smiles on the faces of its patrons", said Rajkhowa.

ALSO READ: IIT-Guwahati hosts semiconductor workshop to boost industry ahead of TATA's Assam venture