REG - Hostelworld Grp PLC - 2023 AGM Statement

HostelworldAnnouncement

09/05/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230509:nRSI6688Ya&default-theme=true

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 €16.5 million to €17
million for the full year(1).

As you are aware, the Group recently made a voluntary early repayment of €10
million of its €30 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 €10 million term loan, a
€7.5 million revolving credit facility ('RCF') and an undrawn €2.5 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
(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 €14.6m

(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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMMZGGKVRVGFZM