just add Trigger to ur update panel
<Triggers>
<asp:AsyncPostBackTrigger ControlID="DropDownListHostelRoom"
EventName="SelectedIndexChanged" />
</Triggers>
you forget Autopostback
:)
<asp:DropDownList ID="DropDownListHostelRoom" runat="server" DataTextField="HTypeName"
DataValueField="_HRTypID"
OnSelectedIndexChanged="DropDownListHostelRoom_SelectedIndexChanged"
AutoPostBack="True">