This study aims to develop a systematic methodology for hostel site selection by identifying and prioritizing the most influential decision indicators. A comprehensive literature review and a modified Delphi method were employed to compile 31 potential indicators relevant to hostel site suitability. To refine and validate these indicators, the decision-making trial and evaluation laboratory methodology was applied. The results highlight infrastructure, regulatory constraints, and partition limits as the most significant factors, ranking first, second, and third, respectively, with strong causal influence on site selection outcomes. These findings suggest that hostel policymakers should prioritize alignment with local infrastructure and government regulations to improve business performance and reduce overhead costs.