Business
2023 AGM Statement
2023 AGM Statement.
About this update from Hostelworld Group Plc
[{"type":"text","content":"\n\nLEI:213800OC94PF2D675H41\nHostelworld Group plc (\"Hostelworld\" or the \"Group\")\n2023 AGM Statement\nFY 2023 financial performance to exceed market expectations1\nHostelworld announces refinancing of legacy debt facility\n \n09 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.\n \nAt the AGM, Michael Cawley, Chairman of Hostelworld, will make the following statement:\n\"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 revenue2 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.\nAs 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 year1.\nAs you are aware, the Group recently made a voluntary early repayment of €10 million of its €30 million term loan facility with HPS3. 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 ...