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Hostelworld Group PLC (GB:HSW)
LSE:HSW

Hostelworld (HSW) AI Stock Analysis

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GB

Hostelworld

(LSE:HSW)

Rating:74Outperform
Price Target:
153.00p
▲(11.68%Upside)
Hostelworld's strong financial performance and strategic share buyback program are significant positives, indicating financial health and shareholder focus. However, the lack of revenue growth and absence of a dividend yield slightly temper the overall score.

Hostelworld (HSW) vs. iShares MSCI United Kingdom ETF (EWC)

Hostelworld Business Overview & Revenue Model

Company DescriptionHostelworld (HSW) is a leading online travel agent specializing in hostel accommodations. The company operates a platform that connects travelers with a wide selection of hostels worldwide, offering a user-friendly interface to search, book, and review hostel stays. Hostelworld focuses on the budget travel sector, catering primarily to young and budget-conscious travelers seeking unique and social accommodation experiences.
How the Company Makes MoneyHostelworld makes money primarily through commission-based revenue, which is generated from bookings made via its platform. When a traveler books a hostel stay through Hostelworld, the hostel pays a commission fee to the company, typically representing a percentage of the booking price. Additionally, Hostelworld charges service fees to users for processing bookings. The company leverages partnerships with hostels and travel-related service providers to enhance its offerings and maintain a comprehensive inventory of accommodations. Its earnings are influenced by factors such as the volume of travel bookings, the average booking value, and the overall trends in the travel and tourism industry.

Hostelworld Financial Statement Overview

Summary
Hostelworld has shown significant operational improvements and financial resilience post-pandemic. The income statement reflects a strong return to profitability with improved margins, although revenue growth remains a challenge. The balance sheet is solid with low leverage and a strong equity base, while cash flow metrics highlight effective cash management and growth.
Income Statement
75
Positive
Hostelworld demonstrated strong performance in the latest annual period with a gross profit margin of 79.35% and an impressive turnaround in net profit margin to 9.89% from previous losses. Revenue growth over the last year was slightly negative at -1.36%, indicating a slight decline but a strong recovery from pandemic lows. Both EBIT and EBITDA margins improved significantly, reflecting operational efficiency gains.
Balance Sheet
70
Positive
The company maintains a robust equity position with an equity ratio of 77.46%, indicating financial stability. The debt-to-equity ratio is very low at 0.004, suggesting minimal leverage and reduced financial risk. However, return on equity stands at 12.98%, which is respectable but leaves room for improvement.
Cash Flow
80
Positive
Free cash flow has shown strong growth, reflecting a positive trend in cash generation capabilities. The operating cash flow to net income ratio is robust at 2.23, indicating efficient cash flow management. The free cash flow to net income ratio of 1.62 further underscores solid cash flow performance.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue92.00M93.26M69.69M16.90M15.36M
Gross Profit73.00M52.64M57.11M5.79M2.15M
EBITDA18.00M5.21M-2.01M-20.67M-36.12M
Net Income9.10M5.14M-17.26M-36.02M-48.86M
Balance Sheet
Total Assets90.50M94.83M106.48M116.51M120.60M
Cash, Cash Equivalents and Short-Term Investments8.20M6.71M18.21M24.52M16.69M
Total Debt300.00K10.73M31.66M28.30M5.46M
Total Liabilities20.40M35.65M54.23M49.40M22.74M
Stockholders Equity70.10M59.18M52.24M67.11M97.86M
Cash Flow
Free Cash Flow14.70M17.32M-5.54M-18.22M-14.90M
Operating Cash Flow20.30M17.43M-749.00K-13.75M-11.04M
Investing Cash Flow-5.60M-4.09M-4.79M-4.47M-3.87M
Financing Cash Flow-14.00M-24.81M-752.00K25.27M13.73M

Hostelworld Technical Analysis

Technical Analysis Sentiment
Positive
Last Price137.00
Price Trends
50DMA
118.82
Positive
100DMA
121.60
Positive
200DMA
128.15
Positive
Market Momentum
MACD
5.22
Negative
RSI
64.17
Neutral
STOCH
67.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSW, the sentiment is Positive. The current price of 137 is above the 20-day moving average (MA) of 123.67, above the 50-day MA of 118.82, and above the 200-day MA of 128.15, indicating a bullish trend. The MACD of 5.22 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 67.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSW.

Hostelworld Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£1.34B6.822.95%-10.46%396.13%
GBHSW
74
Outperform
£174.13M22.2814.05%-3.96%83.04%
GBJDW
73
Outperform
£831.89M14.8216.38%0.39%3.70%57.10%
GBWTB
70
Outperform
£4.93B19.997.40%3.14%3.75%-22.77%
GBPPH
63
Neutral
£667.03M23.768.99%1.93%6.80%27.42%
GBAO
63
Neutral
£546.74M52.516.87%-0.39%2.68%
56
Neutral
HK$23.97B4.08-1.57%8.88%0.06%-64.88%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HSW
Hostelworld
137.00
-22.00
-13.84%
GB:PPH
PPHE Hotel
1,594.00
331.61
26.27%
GB:WTB
Whitbread
2,829.00
-31.39
-1.10%
GB:AO
AO World
96.10
-16.50
-14.65%
GB:JDW
J D Wetherspoon
773.50
60.80
8.53%
GB:CURY
Currys plc
122.40
47.85
64.19%

Hostelworld Corporate Events

Stock Buyback
Hostelworld Executes Share Buyback to Enhance Capital Structure
Positive
Jun 27, 2025

Hostelworld Group PLC announced the repurchase of 37,000 of its Ordinary Shares on the London Stock Exchange as part of its share buyback program. The repurchase and subsequent cancellation of these shares aim to optimize the company’s capital structure, potentially enhancing shareholder value and reflecting confidence in the company’s financial health.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Stock Buyback
Hostelworld Executes Share Buyback to Optimize Capital Structure
Positive
Jun 26, 2025

Hostelworld Group PLC announced the repurchase of 37,000 of its ordinary shares on the London Stock Exchange as part of its share buyback program. This move, which involves cancelling the repurchased shares, is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Stock Buyback
Hostelworld Executes Share Buyback to Enhance Shareholder Value
Positive
Jun 25, 2025

Hostelworld Group PLC announced the repurchase of 22,067 of its Ordinary Shares on the London Stock Exchange as part of its share buyback program. This move, executed through Goodbody Stockbrokers, is intended to reduce the number of shares in circulation, potentially increasing the value of remaining shares and demonstrating confidence in the company’s financial health.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Stock Buyback
Hostelworld Executes Share Buyback to Enhance Shareholder Value
Positive
Jun 24, 2025

Hostelworld Group PLC has executed a buyback of 34,000 of its ordinary shares on the London Stock Exchange, as part of a share buyback program announced earlier. This move reduces the total number of shares in circulation to 127,195,503, potentially increasing the value of remaining shares and signaling confidence in the company’s financial health.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Stock Buyback
Hostelworld Executes Share Buyback to Boost Shareholder Value
Positive
Jun 23, 2025

Hostelworld Group PLC announced the repurchase of 25,820 of its Ordinary Shares on the London Stock Exchange as part of its share buyback program. This move is expected to reduce the number of shares in circulation, potentially increasing the value of remaining shares and demonstrating confidence in the company’s financial health.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Hostelworld Executes Share Buyback to Optimize Capital Structure
Positive
Jun 23, 2025

Hostelworld Group PLC announced the repurchase of 25,820 of its Ordinary Shares on the London Stock Exchange as part of its share buyback program. This move, which involves canceling the repurchased shares, is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Stock Buyback
Hostelworld Executes Share Buyback to Bolster Shareholder Value
Positive
Jun 20, 2025

Hostelworld Group PLC has announced the repurchase of 22,000 of its ordinary shares on the London Stock Exchange as part of its share buyback program. This move is expected to reduce the number of shares in circulation, potentially increasing the value of remaining shares and signaling confidence in the company’s financial health to investors.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Hostelworld Initiates £5 Million Share Buyback Program
Positive
Jun 19, 2025

Hostelworld Group PLC has announced a share buyback program to repurchase up to £5 million worth of ordinary shares, commencing on June 19, 2025, and potentially running until December 31, 2025. This move is part of their capital allocation strategy, reflecting confidence in their financial position and commitment to enhancing shareholder value, while maintaining the ability to pursue strategic acquisitions for growth and improved returns.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Business Operations and Strategy
Aberforth Partners LLP Increases Stake in Hostelworld Group PLC
Neutral
May 12, 2025

Hostelworld Group PLC has announced a change in its major holdings, with Aberforth Partners LLP increasing its voting rights from 9.24% to 10.37%. This acquisition of voting rights signifies a strengthened position for Aberforth Partners LLP within the company, potentially impacting future decision-making processes and strategic directions. The notification was completed in Edinburgh, UK, and reflects a notable shift in stakeholder influence within Hostelworld.

The most recent analyst rating on (GB:HSW) stock is a Buy with a £2.15 price target. To see the full list of analyst forecasts on Hostelworld stock, see the GB:HSW Stock Forecast page.

Regulatory Filings and Compliance
Hostelworld Executives Sell Shares to Settle Tax Liabilities
Neutral
May 9, 2025

Hostelworld Group PLC announced the sale of shares by CEO Gary Morrison and CFO Caroline Sherry to settle tax liabilities related to their acquisition of shares under the company’s Long-Term Incentive Plan. This transaction, conducted on the London Stock Exchange, aligns with regulatory requirements and reflects the company’s ongoing commitment to transparent financial practices.

Executive/Board ChangesBusiness Operations and Strategy
Hostelworld Issues Shares to Key Executives Under Incentive Plan
Positive
May 8, 2025

Hostelworld Group PLC announced the issuance of shares to its CEO, Gary Morrison, and CFO, Caroline Sherry, as part of the vesting of awards under the Company’s Long-Term Incentive Plan. This transaction, conducted outside a trading venue, reflects the company’s commitment to rewarding its key executives, potentially impacting its operational dynamics and signaling confidence in its leadership to stakeholders.

Other
Hostelworld Announces Change in Voting Rights Structure
Neutral
May 8, 2025

Hostelworld Group PLC announced a change in the breakdown of voting rights, with BGF Investment Management Limited reducing its voting rights from 5.117% to 4.965%. This adjustment follows a subscription of shares, impacting the company’s shareholder structure and potentially influencing its governance dynamics.

Executive/Board ChangesShareholder MeetingsStock BuybackBusiness Operations and Strategy
Hostelworld Group PLC Passes All Resolutions at Annual General Meeting
Positive
May 7, 2025

Hostelworld Group PLC successfully held its Annual General Meeting on May 7, 2025, where all proposed resolutions were passed. These resolutions included the adoption of the company’s accounts, approval of the directors’ remuneration report, and the election and re-election of several directors. The meeting also authorized the company to make market purchases of its own shares and approved the Long Term Incentive Plan 2025. The resolutions passed are expected to support the company’s strategic objectives and enhance shareholder value.

Stock BuybackDividendsBusiness Operations and Strategy
Hostelworld Unveils Strategic Growth Plan and Reinstates Dividend
Positive
Apr 29, 2025

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.

Stock BuybackDividendsBusiness Operations and Strategy
Hostelworld Unveils Strategic Growth Plan and Reinstates Dividend
Positive
Apr 29, 2025

Hostelworld announced a strategic growth plan at its Capital Markets Day, focusing on scaling its social travel network to create long-term value and reinstating a dividend policy. The strategy includes strengthening its core business, expanding its market with additional budget accommodations, and exploring selective acquisitions. This plan aims for low double-digit revenue growth by 2026-2027, with a focus on increasing shareholder returns through dividends and a potential share buy-back program. Despite challenges like a weaker US dollar and shifting traveler preferences, Hostelworld anticipates mid-single-digit revenue growth for 2025.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Hostelworld Releases 2024 Annual Report and Announces 2025 AGM
Neutral
Apr 2, 2025

Hostelworld Group PLC has released its Annual Report for 2024 and announced its 2025 Annual General Meeting, scheduled for May 7, 2025, in Dublin, Ireland. The company has made available various documents, including the Annual Report and a Circular with the Chairman’s Letter, to shareholders and regulatory bodies. The report outlines the company’s financial performance and strategic direction, while also addressing risks such as changing travel patterns, inflationary pressures, and geopolitical tensions. The Board of Directors emphasizes effective risk management and internal controls, ensuring the company’s resilience and strategic objectives are met.

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.Date of analysis: Jun 27, 2025