26th Mar 2026 12:50
(Alliance News) - Hostelworld Group PLC on Thursday reported lower profit but higher revenue for 2025, as operating expenses climbed.
The Dublin-based online travel agent focused on the hostel market said pretax profit fell 24% to EUR8.4 million in 2025 from EUR11.1 million in 2024.
Revenue climbed 2.0% to EUR93.8 million from EUR92.0 million, but operating expenses grew 5.6% to EUR85.4 million from EUR80.9 million.
During the year, Hostelworld reinstated a dividend policy and declared an interim dividend of 82 euro cents for the first half of the year.
It plans to pay a final dividend of EUR1.58 per share, giving a total dividend of EUR2.40 per share.
Hostelworld reported a "significant step-up" in revenue in the second half, which shows a "strengthening trajectory" heading into 2026.
"2025 was a year of two distinct halves for Hostelworld. While the year began against a softer trading backdrop, I am very pleased with the significant momentum we built throughout the second half, delivering 7% revenue growth in [the second half] and full-year adjusted [earnings before interest, tax, depreciation and amortisation] in line with market consensus," said Chief Executive Officer Gary Morrison.
Hostelworld reported adjusted Ebitda of EUR19.9 million, down 8.7% from EUR21.8 million a year prior.
The company said trading in the first quarter of 2026 has been positive, and said it is on track to deliver around 3% bookings growth and more than 12% revenue growth for the quarter.
CEO Morrison said the board remains confident that the firm will deliver low double-digit revenue growth in 2026 and 2027, in line with targets set out at its capital markets day last April.
It expects an adjusted Ebitda margin greater than 20%.
"The group is mindful of the evolving situation in the Middle East and its potential broader impact on global travel patterns and airline pricing. We are seeing some softness in bookings to Asia and Oceania, offset by stronger demand in Europe and North America, supported in part by the timing of Easter this year," CEO Morrison said.
The company noted that it is too early to draw firm conclusions from early trends, but said there has been no material effect on revenue so far.
"Our current outlook assumes no material impact on bookings and is subject to there being no further escalation in the region which would further disrupt air travel. We will continue to monitor the situation closely and update shareholders should the position change," CEO Morrison added.
Looking further ahead, Hostelworld said it is well positioned to benefit from the structural shift towards "AI-powered travel discovery".
Shares in Hostelworld were up 1.0% at 101.00 pence on Thursday afternoon in London.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Hostelworld