Hostelworld sees growth in H2 2025, Q1 2026

Hostelworld Group delivered a mixed performance in 2025, with net revenue rising 2% to EUR 93.8 million and adjusted EBITDA falling to EUR 19.9 million, though this masks a clear acceleration in the second half of the year. After a subdued first half, revenue grew 7.1% in H2, with double-digit growth in Q4 – momentum that has continued into Q1 2026, where revenue has climbed more than 12%.

This improvement has been driven by stronger commission rates through the Elevate programme, a more favourable geographic mix, and improved marketing efficiency, with costs falling to the lower end of guidance in the second half. Net bookings reached 7 million, while the business maintained solid cash generation, ending the year with EUR 12.2 million in cash.

Strategically, Hostelworld is evolving beyond a traditional hostel OTA into a broader social travel platform. New initiatives such as Social Passes, which let travellers access its social network without booking accommodation, and the expansion into budget accommodation across 18,000 destinations are already contributing to growth and attracting new users. The acquisition of OccasionGenius further strengthens the platform by integrating events and experiences.

Engagement across its social network continues to rise, with messaging up 81% year-on-year and app bookings now accounting for 63% of total bookings. CEO Gary Morrison said these developments are delivering “tangible results,” reinforcing confidence in the company’s long-term growth strategy.

Looking ahead, Hostelworld expects continued expansion, supported by its diversified revenue streams and improving performance into 2026, though macroeconomic uncertainty, competition, and currency fluctuations remain key risks.

Source: Earnings call transcript: Hostelworld sees growth in H2 2025, Q1 2026 By Investing.com