Acceptable profit margins in hostels

Hi,

I am running a hostel in Manila, Philippines. We have been averaging 70% occupancy in our first 6 months of operation and have had some instances that we turned away guests. We are considering opening a new wing/expanding but as per our hotel consultant, it wouldn't be wise to do so until we reach a 40% profit margin. As it is and as projected, we will only reach around 20-22% profit margin.

MY question is: what is the standard profit margin of hostels? Does it differ with hotels?

and why?

thanks in advance!