Hostelworld: shares rise on new investor stake
The hostel-focused online booking platform has experienced a hugely challenging period due to the pandemic. Here, we discuss its financial prospects, strategy and the chances of it delivering a successful turnaround. Or should investors simply stick with our high-flying Ultimate Stock? With a highly-regarded investor having recently joined the shareholder register it's looking more encouraging.
The travel & leisure sector has experienced arguably its most challenging trading conditions in living memory over the pandemic. Grounded flights and travel restrictions caused by containment measures in response to Covid-19 have caused demand for accommodation, including the hostels listed on Hostelworld’s (LON:HSW) popular online booking platform, to decline to extremely low levels. Since lockdown measures remain in place in many countries around the world, the short-term outlook for Hostelworld continues to be very uncertain and consumers are less likely to book holidays or accommodation until containment measures begin to ease. High levels of unemployment and lower consumer confidence…