So he makes 300k revenues per month. Expenses have to be atleast 150k. So he makes 150k per month after investing maybe 15 million plus, not accounting for depreciation and maintenance costs of equipment in the house, which will be significant. And he is probably deprived of appreciation of the property as a residential property (can't really sell it as a normal house due to tiny rooms). What an idiot businessman....No offense.
There is a reason why the hostel business is mainly done on rented premises. For such a big investment, if he used rented premises, he could be operating atleast 10 such hostels.
Rent down payment/deposit - ~300k
Equipment & installation - ~800k (ACs/geysers/furniture/kitchen stuff/paint/renovations)
Salaries for the first few months - ~200k
Total = 1.3 million per facility.