In the last decade, Hyderabad transitioned from a sleepy town with Nawabi lifestyle to global offshore destination. In the process, attracting many MNC companies to setup offices in Hyderabad.
In this transition, the Hostels played a very key role. By providing a place to stay for those who moved to Hyderabad in the first few months or years in Hyderabad. The hostels enabled companies to scout for talent from other locations in AP as well as from outside AP. The hostels made it easy for people to find a place to stay in Hyderabad. Otherwise, they would have to find a relative or friend already established in Hyderabad.
As you probably know most landlords have a bias against bachelors. It is very difficult to find a place to stay easily. Without the hostels, it would have been difficult to get people to move to Hyderabad. This would have put the hiring plans of the Hyderabad companies in jeopardy.
I am aware the hostels are not classy places. However, they serve a purpose and they do it fairly decently. In my company, I have benefited from hiring several people who were new to the city and these hostels enabled them to find a place to stay. Thus, helping them to stay focused on doing well on their job!