9th May 2023 12:15
(Alliance News) - Hostelworld Group PLC on Tuesday boasted a "strong start" to 2023, noting that bookings in many of its key destinations were above pre-pandemic 2019 levels.
Shares in Hostelworld were up 8.2% at 140.13 pence in London on Tuesday afternoon.
The hostel booking company said that the Asian market, in particular, has recovered strongly as Covid-19 related restrictions have been lifted.
Further, the company noted that bed prices are ahead of 2019 levels, reflecting, in part, a lower level of inventory supply but primarily driven by strong demand, Hostelworld said.
The combination of higher bed prices and booking volumes has resulted in a "record" level of revenue in the first quarter of 2023.
Consequently, Hostelworld said it now expects bookings and revenue to grow by 30% over 2022 and adjusted earnings before interest, tax, depreciation and amortisation to be in the range of EUR16.5 million to EUR17 million for the full year.
In 2022, net revenue totalled EUR69.7 million and adjusted Ebitda stood at EUR1.3 million. Net bookings stood at 4.8 million in 2022.
"Hostelworld's new unique social network which was only introduced to customers in mid-2022 is also proving to be hugely popular and has helped deliver market share gains in key markets," commented Chair Michael Cawley.
The company also announced that it has fully refinanced its legacy facility with HPS Investment Partners LLC and certain subsidiaries and affiliates, following the agreement of a new three-year facility with Allied Irish Banks PLC.
The facility is comprised of a EUR10 million term loan, a EUR7.5 million revolving credit facility and an undrawn EUR2.5 million overdraft.
Chair Cawley said: "This new facility, with materially lower interest costs, significantly strengthens our balance sheet, represents a strong endorsement of our post-pandemic performance, and consolidates the firm foundations upon which we will drive profitable growth and create shareholder value."
By Heather Rydings, Alliance News senior economics reporter
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