There's a platforms offering stays in India for ₹499 including meals? Is this actually sustainable?

I recently came across a concept and I’m trying to understand if it actually makes sense.

There’s a startup trying to offer short stays starting around ₹499–₹999 per night with meals included, which sounds almost impossible because most hotels charge ₹800–₹1500 without food.

From what I understand, the idea works like this.

They partner with PG accommodations (paying guest hostels). These PGs normally rent beds monthly to students or working professionals. Because of that, they already have things like a working kitchen, shared rooms with multiple beds, WiFi, washing machine, fridge, clean washrooms, and basic living facilities.

But many PGs often have empty beds during certain periods.

Instead of letting those beds stay empty, the PG allows short-stay travelers to book them for a few days.

Since the kitchen and staff are already running for the regular residents, adding one extra person doesn’t increase the cost much. So they can offer something like:

₹499 – shared non-AC bed with meals
₹699–₹999 – AC shared or private options with meals included.

Guests basically use the same amenities the monthly residents already use. The platform acts like a marketplace that connects travelers with these vacant PG beds.I’m curious what people think about this:

Does this sound like a smart way to use unused inventory, or are there hidden problems?Would travelers actually choose PG stays over hotels or hostels for short trips?What kind of issues might come up around safety, operations, or expectations?