Hostelworld Group (LSE:HSW), the online hostel and budget accommodation marketplace, said first-half 2026 net revenue rose 12% year-on-year to €52.2m, with revenue per transaction up 11% to €14.9, as improved marketplace pricing offset a modest drag on booking volumes from the Middle East conflict.
Net transactions increased just 1% to 3.8m, with the company estimating the geopolitical disruption reduced volume growth by approximately three percentage points, with Asia and Oceania most affected and Europe and North America more resilient.
The effective commission rate climbed to 17.7% from 15.8% a year earlier, reflecting the continued rollout of Elevate, its marketplace monetisation tool that allows hostel partners to compete for higher-intent international travellers.
Direct marketing costs fell to 49% of revenue from 51% in the first half of 2025, supporting net margin growth of 16% to €22.9m, while adjusted EBITDA rose 11% to €8.2m.
The group closed the period with cash of €15m and net cash of €2.5m.
"Our full-year guidance assumes that the disruption associated with the Middle East conflict eases through the second half," chief executive Gary Morrison said, adding that the contribution from growth initiatives is expected to increase as the year progresses.
Half-year results are scheduled for 29 July.
Shore Capital reiterates Buy on Hostelworld at 230p
Shore Capital analyst Katie Cousins, in a note, said Hostelworld remains an attractive play on the structurally growing hostel market but needs to transition from a traditional OTA to a broader social travel platform.
The note, repeating a Buy rating and 230p target, flags OccasionGenius go‑live in Q3 alongside ongoing Social Passes execution as the primary near‑term catalysts for monetisation.
She highlights the shares trade around 7x EV/EBITDA and 11x P/E, a discount to larger OTAs that underpins Shore's conviction in longer‑term earnings upside.
