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Hostelworld
(LSE:HSW)
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Rating:64Neutral
Price Target:
114.00 p
▼(-2.98% 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
Margin Expansion and Profitability
Hostelworld's sharp gross-margin expansion and returning operating profits show structurally improved unit economics in its marketplace. Higher gross and EBITDA margins support durable cash generation, giving the company scope to reinvest in product, sustain operations through cycles, and improve returns even if top-line growth slows.
Negative Factors
Recent Revenue Contraction
Sustained top-line declines over 2024–2025 reduce operating leverage and limit the durability of margin gains. If booking volumes fall, high margins may not fully offset lower scale, constraining reinvestment and making it harder to grow gross bookings and recover long-term market share in a competitive travel space.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion and Profitability
Hostelworld's sharp gross-margin expansion and returning operating profits show structurally improved unit economics in its marketplace. Higher gross and EBITDA margins support durable cash generation, giving the company scope to reinvest in product, sustain operations through cycles, and improve returns even if top-line growth slows.
Read all positive factors
Hostelworld (HSW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£132.52M
Dividend Yield1.83%
Average Volume (3M)394.03K
Price to Earnings (P/E)25.5
Beta (1Y)0.40
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. Volume41,254
30 Day Avg. Volume394,027
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
£200.25Price Target Upside70.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.13
Revenue Forecast (FY)£104.93M
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 commission on bookings made through its platform. When a traveler reserves a bed/room at a listed property, Hostelworld receives a fee from the accommodation provider, typically calculated as a percenta...
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 | 18.00M | 13.80M | -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
108.25
Negative
108.41
Negative
109.98
Negative
Market Momentum
-0.13
Positive
46.75
Neutral
33.64
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 111.23, above the 50-day MA of 108.25, and above the 200-day MA of 109.98, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 33.64 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | £2.66B | 6.86 | 19.92% | 1.14% | 4.30% | -4.51% | |
68 Neutral | £3.92B | 19.30 | 6.73% | 4.13% | -0.06% | -13.45% | |
64 Neutral | £132.52M | 25.53 | 8.85% | 1.83% | 11.27% | -13.59% | |
64 Neutral | £249.13M | 85.71 | 2.40% | 0.57% | -1.97% | -77.68% | |
64 Neutral | £645.53M | 9.74 | 35.11% | ― | 2.40% | 48.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | £8.12M | -0.82 | -44.19% | 0.42% | -8.49% | -1029.93% |
* Consumer Cyclical Sector Average
GB:HSW
Hostelworld
113.00
-1.86
-1.62%
GB:JET2
Jet2 PLC
1,455.00
2.19
0.15%
GB:OTB
On The Beach
174.00
-84.55
-32.70%
GB:SSTY
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12.50
-10.00
-44.44%
GB:WTB
Whitbread
2,347.00
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-21.61%
GB:TRN
Trainline
193.40
-104.60
-35.10%
Hostelworld Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Hostelworld Delivers H1 Growth as It Builds Out Social Travel Platform
Positive
Jul 29, 2026
Hostelworld reported double-digit top-line growth for the first half of 2026, with net revenue up 12% to €52.2 million and net margin rising 16% to €22.9 million despite a three-point drag on volumes from the Middle East conflict. Impr...
Business Operations and StrategyExecutive/Board Changes
Hostelworld refreshes board as it targets next phase of digital-led growth
Positive
Jul 24, 2026
Hostelworld Group plc has announced planned board changes as long-serving non-executive directors Éimear Moloney and Carl G. Shepherd step down in July 2026, in the final months of their nine-year tenure. They are credited with steering the c...
Business Operations and StrategyFinancial Disclosures
Hostelworld Maintains 2026 Outlook as Revenue and Monetisation Strengthen
Positive
Jul 9, 2026
Hostelworld reiterated its full-year 2026 guidance after reporting strong first-half trading, with net revenue up 12% year-on-year to €52.2 million and revenue per transaction rising 11% despite a modest 1% increase in transaction volumes. T...
Business Operations and StrategyRegulatory Filings and Compliance
Hostelworld Updates Markets on Employee Share Scheme Allotments
Neutral
May 22, 2026
Hostelworld Group PLC has provided its latest block listing six-monthly return for its Long Term Incentive Plan and Save as You Earn employee share option scheme, covering the period from 24 November 2025 to 22 May 2026. The filing outlines change...
Business Operations and StrategyStock BuybackDividendsRegulatory Filings and ComplianceShareholder Meetings
Hostelworld shareholders pass all AGM resolutions amid dissent on political donations
Neutral
May 6, 2026
Hostelworld Group plc reported that all resolutions at its Annual General Meeting on 6 May 2026 were approved by shareholders, including adoption of the 2025 accounts, the directors’ remuneration report, the annual bonus plan, and a final di...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Hostelworld Maintains 2026 Outlook as Social Travel Strategy Advances
Positive
May 6, 2026
Hostelworld told investors at its 2026 annual general meeting that year-to-date trading remains resilient, with revenue momentum intact despite a challenging macro backdrop and disruption to some long-haul routes via the Middle East. The board rei...
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.