Hostelworld - New debt facility would ensure financial security

Davy Research
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Hostelworld is, undoubtedly, well-placed to capitalise on demand improvements when restrictions gradually and eventually ease. However, this nirvana remains some months away and, in the meantime, the company is prudently negotiating a €30m debt facility, which would underpin its financial security. At just 3.9x EV to 2019 EBITDA, we see risk-return as positively skewed.