Hostelworld Unveils Strategic Growth Plan and Reinstates Dividend

Hostelworld ( (GB:HSW) ) has provided an update.

Hostelworld has announced a strategic growth plan at its Capital Markets Day, focusing on scaling its social travel network for long-term value creation. The plan includes strengthening its core business, expanding the addressable market, and exploring selective mergers and acquisitions. The company aims for low double-digit revenue growth in 2026 and 2027, with a marketing spend of 45-50% of revenue and an adjusted EBITDA margin greater than 20%. Additionally, Hostelworld is reinstating a progressive dividend policy and introducing a share buy-back program, reflecting confidence in its growth strategy and commitment to shareholder returns.

Spark’s Take on GB:HSW Stock

According to Spark, TipRanks’ AI Analyst, GB:HSW is a Outperform.

Hostelworld demonstrates strong financial performance with a solid return to profitability and effective cash management, but faces a challenge with revenue growth. The technical indicators suggest bearish momentum, which affects the overall sentiment. The valuation is reasonable, supporting a fair assessment of the stock. The focus on social strategy and sustainability is a positive long-term factor.

To see Spark’s full report on GB:HSW stock, click here.

More about Hostelworld

Hostelworld Group PLC is a pioneering social network-powered Online Travel Agent (OTA) focused on the hostelling category. Founded in 1999 and headquartered in Ireland, the company aims to connect travelers through social features on its platform, facilitating interactions in hostels and cities. With a strong commitment to sustainability, Hostelworld collaborates with hostel partners in over 180 countries and offers customers options to offset their carbon emissions.

YTD Price Performance: -17.04%

Average Trading Volume: 140,370

Technical Sentiment Signal: Buy

Current Market Cap: £140M

For detailed information about HSW stock, go to TipRanks’ Stock Analysis page.