DAVY VIEW

Hostelworld issued a full year trading update this morning, with the key metrics coming in broadly in line with our expectations. Revenue momentum improved in H2 owing to better geographic mix and the benefits from its Elevate programme; marketing efficiency also improved. We believe key to a sustained re-rating of the shares is improved topline momentum, so the better exit rate from 2025 is encouraging. Delivery of its growth roadmap and strategic initiatives, including evidence of the benefits of its OccasionGenius events business during 2026, will be key in this regard.