TIDMHSW
RNS Number : 6688Y
Hostelworld Group PLC
09 May 2023
LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or the "Group")
2023 AGM Statement
FY 2023 financial performance to exceed market expectations
(1)
Hostelworld announces refinancing of legacy debt facility
09 May 2023: Hostelworld, a leading global social network
powered OTA focused on the hostelling category, is holding its AGM
today at 12 noon at the offices of the Company, Charlemont
Exchange, Charlemont Street, Dublin 2.
At the AGM, Michael Cawley, Chairman of Hostelworld, will make
the following statement:
"I am pleased to report that the strong start to 2023 which we
outlined in our Preliminary Results announcement in March has
continued. Bookings in many key destinations are above 2019 levels
with the Asian market, in particular, recovering strongly as Covid
related restrictions were lifted. Bed prices are ahead of 2019
levels reflecting, in part, a lower level of inventory supply but
primarily driven by strong demand. The combination of higher bed
prices and booking volumes has resulted in a record level of
revenue(2) in Q1. 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.
As a result of this strong performance and in the absence of any
deterioration in the macro-economic environment, the reintroduction
of Covid restrictions or air travel disruptions, we expect bookings
and revenue to grow by 30% over 2022 and our adjusted EBITDA to be
in the range of EUR16.5 million to EUR17 million for the full
year(1) .
As you are aware, the Group recently made a voluntary early
repayment of EUR10 million of its EUR30 million term loan facility
with HPS (3) . Today I am pleased to announce that the Group has
now fully refinanced this legacy facility following the agreement
of a new 3-year facility with Allied Irish Banks plc ('AIB'). This
facility is comprised of a EUR10 million term loan, a EUR7.5
million revolvin g credit facility ('RCF') and an undrawn EUR2.5
million overdraft. The term loan and RCF each have an initial
interest rate payable of 3.75% over EURIBOR, reducing to 3.25%
where the ratio of Net Debt to adjusted EBITDA is less than 2 times
and, 2.65% where the ratio is less than 1 times. The new facility
includes a customary security package and financial covenants as
would be standard for a financing transaction of this nature.
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."
AGM details:
The results of the resolutions relating to the AGM will be
published later today. Further information relating to the AGM is
published on the Company's website:
https://www.hostelworldgroup.com/investors/agm-information/2023
MAR information
This announcement contains inside information for the purposes
of Article 7 of the UK version of the Market Abuse Regulation (EU
596/2014) ("MAR") which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018. For the purposes of MAR and Article 2
of Commission Implementing Regulation (EU) 2016/1055, this
announcement is being made on behalf of the Company by Caroline
Sherry, Chief Financial Officer.
For further information please contact:
Hostelworld Group plc Corporate@hostelworld.com
Gary Morrison, Chief Executive
Officer
Caroline Sherry, Chief Financial
Officer
David Brady, Head of Commercial
Finance
Powerscourt hostelworld@powerscourt-group.com
Eavan Gannon / Nick Dibden Tel: +44 (0) 20 7250 1446
About Hostelworld Group
Hostelworld Group Plc is a ground-breaking social network
powered OTA focused on the hostelling category, with a clear
mission to help travellers find people to hang out with. Our
mission statement is founded on the insight that the vast majority
of travellers go hostelling as a means to meet other people; which
we facilitate through a series of Social features on our platform
that connect our travellers in hostels and cities based on their
booking data. To date the strategy has been extraordinarily
successful, generating significant word of mouth recommendations
from our customers and strong endorsements from our Hostel
partners.
Founded in 1999, Hostelworld is a well-known trusted brand with
250 employees across 11 countries; hostel partners in 170
countries; and a strong commitment to building a better world in
all that we do. In particular, our focus in the last few years has
been on improving the sustainability of hostelling industry,
through our membership of the Global Sustainable Tourism Council
(GSTC); our active involvement in the Global Tourism Plastics
Initiative (GTPI); our partnerships with Bureau Veritas to
establish emissions benchmarks for the hostelling industry; and our
recent partnership with the South Pole to be a climate neutral
company in 2021 and 2022.
Disclaimer
This announcement contains forward-looking statements. These
statements relate to the future prospects, developments and
business strategies of Hostelworld. Forward-looking statements are
identified by the use of such terms as "believe", "could",
"envisage", "estimate", "potential", "intend", "may", "plan",
"will" or variations or similar expressions, or the negative
thereof. Any forward-looking statements contained in this
announcement are based on current expectations and are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by those statements. If
one or more of these risks or uncertainties materialize, or if
underlying assumptions prove incorrect, Hostelworld's actual
results may vary materially from those expected, estimated or
projected. Any forward-looking statements speak only as at the date
of this announcement. Except as required by law, Hostelworld
undertakes no obligation to publicly release any update or
revisions to any forward-looking statements contained in this
announcement to reflect any change in events, conditions or
circumstances on which any such statements are based after the time
they are made.
(1) FY 2023 current market Adjusted EBITDA expectations, as per
company compiled consensus, is EUR14.6m
(2) Revenue is gross revenue less cancellations
(3) HPS means, together, certain funds (or affiliates or
subsidiaries of such funds) and/or accounts managed, advised or
controlled by HPS Investment Partners, LLC or its subsidiaries or
affiliates
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END
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