Hostelworld Group

HSW.L

Travel Services · Consumer Cyclical

Price

114.50 GBp

+3.50 (+3.15%)

Market Cap

£141.2M

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Exceptional

Stability

Strong

Valuation

Strong

Dividends

Weak

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Share count rising — dilution

+10.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 116.3M (2021) → 128.6M (2025)

Winston Score History

The full picture

Hostelworld Group is an online booking platform focused almost entirely on hostels — budget-friendly accommodation popular with solo backpackers and young travelers. It connects travelers with thousands of hostels across the world through its website and mobile app, making it one of the largest hostel-focused booking platforms globally. The company owns the Hostelworld brand and also operated Hostelbookers before consolidating under one name.

The company earns money by charging hostels a commission each time a booking is made through its platform, giving it a marketplace-style revenue model with no physical properties to manage. It operates globally but draws most of its bookings from European destinations, and its focus on the hostel niche gives it a recognizable brand among budget travelers — a segment most large travel platforms largely ignore. The key growth driver is increasing mobile app engagement and a social-discovery feature designed to help solo travelers connect before they arrive, though its small size and dependence on a single niche make it vulnerable to shifts in travel demand or competition from larger booking platforms.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-53.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

€0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

22.7%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

€15M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Hostelworld Group is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

89.8%

Premium pricing power — 89.8% gross margin

Profit after running costs

Operating Margin

5.4%

Thin — 5.4% operating margin

Return on the money invested

ROCE

15.0%

Good — 15.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+8.2%

Steady sales growth (+8.2% YoY)

Profit growth

EPS YoY

-16.1%

Earnings shrinking (-16.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

355%

Turns 355% of profit into real cash

Spare cash per sale

FCF Margin

22.5%

Converts sales into free cash efficiently (22.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.14

Conservative — low debt load (0.14)

Covers its interest

Interest Cover

3.68x

Tight — interest eats into profit (3.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

22.2x

Growth-priced — P/E 22.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+13.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.2 → 8.5)

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Dividends

Dividend

Dividend Yield

1.82%

Small dividend — 1.82% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-75.9%

Dividend cut (-75.9% YoY) — warning sign

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