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Hostelworld
(LSE:HSW)
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Rating:64Neutral
Price Target:
88.00 p
▼(-25.11% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improved profitability and strong recent cash generation, indicating a healthier financial profile than the loss-making years. This is tempered by revenue contraction in 2024–2025 and mildly negative/soft technical momentum (negative MACD and trading below key moving averages), while valuation is reasonable but not especially cheap given the ~23.6 P/E and ~2% yield.
Positive Factors
Profitability recovery
Profitability has recovered from the loss-making 2020–2022 period, with operating profit and net income remaining positive through 2025. The roughly 23% 2025 EBITDA margin and sharp gross-margin expansion indicate better operating economics, although continued durability depends on restoring growth.
Negative Factors
Revenue contraction
Revenue contraction in two consecutive years is a material threat to the durability of the recent profit recovery. A shrinking top line can reduce operating leverage, constrain investment in the platform and marketing, and make continued margin improvement harder to sustain over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
Profitability has recovered from the loss-making 2020–2022 period, with operating profit and net income remaining positive through 2025. The roughly 23% 2025 EBITDA margin and sharp gross-margin expansion indicate better operating economics, although continued durability depends on restoring growth.
Read all positive factors
Hostelworld (HSW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£101.56M
Dividend Yield2.54%
Average Volume (3M)313.93K
Price to Earnings (P/E)19.1
Beta (1Y)0.35
Revenue Growth11.27%
EPS Growth-13.59%
CountryUK
Employees269
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)0.05
Shares Outstanding123,854,760
10 Day Avg. Volume246,003
30 Day Avg. Volume313,932
Financial Highlights & Ratios
PEG Ratio-1.29
Price to Book (P/B)2.44
Price to Sales (P/S)1.90
P/FCF Ratio9.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£185.00Price Target Upside57.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.12
Revenue Forecast (FY)£103.44M
Hostelworld Business Overview & Revenue Model
Company Description
Hostelworld Group Plc engages in a hostel-focused online booking platform for young and independent travelers. The company was founded in 1999 and is headquartered in Dublin, Ireland....
How the Company Makes Money
Hostelworld primarily makes money by earning a commission on accommodation bookings made through its platform. When a customer reserves a stay, the booking value (room/bed price) is split into a portion that Hostelworld retains as platform revenue...
Hostelworld Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 99.87M | 93.80M | 92.00M | 93.26M | 69.69M | 16.90M |
| Gross Profit | 89.62M | 74.70M | 73.00M | 52.64M | 57.11M | 5.79M |
| EBITDA | 22.48M | 18.00M | 21.60M | 16.80M | -2.01M | -20.67M |
| Net Income | 6.40M | 7.00M | 9.10M | 5.14M | -17.26M | -36.02M |
Balance Sheet | ||||||
| Total Assets | 106.10M | 103.03M | 90.50M | 94.83M | 106.48M | 116.51M |
| Cash, Cash Equivalents and Short-Term Investments | 15.00M | 12.21M | 8.20M | 6.71M | 18.21M | 24.52M |
| Total Debt | 11.00M | 14.72M | 300.00K | 10.73M | 31.66M | 28.30M |
| Total Liabilities | 34.70M | 29.84M | 20.40M | 35.65M | 54.23M | 49.40M |
| Stockholders Equity | 71.40M | 73.19M | 70.10M | 59.18M | 52.24M | 67.11M |
Cash Flow | ||||||
| Free Cash Flow | 22.51M | 18.07M | 14.70M | 17.32M | -5.54M | -18.22M |
| Operating Cash Flow | 22.71M | 18.26M | 20.30M | 17.43M | -749.00K | -13.75M |
| Investing Cash Flow | -17.26M | -15.81M | -5.60M | -4.09M | -4.79M | -4.47M |
| Financing Cash Flow | -1.33M | 1.47M | -14.00M | -24.81M | -752.00K | 25.27M |
Hostelworld Technical Analysis
Negative
117.50
Price Trends
99.36
Negative
103.80
Negative
105.25
Negative
Market Momentum
-4.81
Negative
35.14
Neutral
56.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSW, the sentiment is Negative. The current price of 117.5 is above the 20-day moving average (MA) of 87.50, above the 50-day MA of 99.36, and above the 200-day MA of 105.25, indicating a bearish trend. The MACD of -4.81 indicates Negative momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 56.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HSW.
Hostelworld Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £2.51B | 6.65 | 19.92% | 1.20% | 4.30% | -4.51% | |
69 Neutral | £690.90M | 10.35 | 35.11% | ― | 2.40% | 48.36% | |
68 Neutral | £4.59B | 79.16 | 1.85% | 3.54% | 1.99% | -75.93% | |
64 Neutral | £101.56M | 19.07 | 8.85% | 2.54% | 11.27% | -13.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £233.84M | 85.42 | 2.40% | 0.58% | -1.97% | -77.68% | |
41 Neutral | £3.90M | -0.32 | -90.56% | 0.42% | -13.56% | -2481.08% |
* Consumer Cyclical Sector Average
GB:HSW
Hostelworld
82.00
-44.15
-35.00%
GB:JET2
Jet2 PLC
1,409.00
66.07
4.92%
GB:OTB
On The Beach
173.40
-35.69
-17.07%
GB:SSTY
Safestay
6.00
-14.50
-70.73%
GB:WTB
Whitbread
2,739.00
-24.02
-0.87%
GB:TRN
Trainline
205.40
-48.40
-19.07%
Hostelworld Corporate Events
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Hostelworld lifts revenue and commissions but flags long-haul travel headwinds
Positive
Oct 7, 2026
Hostelworld reported resilient trading for Q3 2026, with net revenue up 7% year on year to €27.9m and effective commission rates reaching a record 17.8%, despite a 2% decline in net transactions caused by Middle East conflict and softer long...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Hostelworld Reshapes Board Committees to Strengthen Governance
Neutral
Aug 11, 2026
Hostelworld Group plc has revised the memberships of its Audit, Remuneration, and Nomination Committees following a review of board committee composition, effective 10 August 2026. The Audit Committee will now be chaired by Paul Duffy, the Remuner...
Business Operations and Strategy
Hostelworld Adds Berenberg as Joint Corporate Broker to Bolster Market Support
Positive
Aug 11, 2026
Hostelworld Group plc, the online hostel-focused booking platform, has strengthened its capital markets support by appointing Joh. Berenberg, Gossler Co KG in London as a joint corporate broker alongside its existing adviser Goodbody Stockbrokers...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.