Can I host laravel app and elasticsearch on the same vps?

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I'd like to install laravel and elastichsearch on the same vps (from DigitalOcean.com if it matters). It seems like the simplest and least time-consuming solution but I am not sure if that's ok? Are there any strong reasons not to do it?

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Not really. But on the long run this may not be the most scalable solution though.

Elastic search requires around 64GB ram - minimum, below that you might get slower performance. If your php app, mysql and the elastic search is in the same server you will get greater performance degradation, since other resources may be consuming most of the RAM required for elastic search.