Chairman of Hostelworld, Michael Cawley, has announced his departure in October after being at the head of the board for nine years. The company is a platform for hostel reservations and is popular among millennials and Gen-Z travellers.
Ulrik Bengtsson is set to take over the reins from Cawley. Prior to accepting the position, Bengtsson left his post as the chief commercial officer at Virgin Media O2 in the UK to explore “non-executive opportunities”. Bengtsson, of Swedish origin, has previous experience as a chief executive, having served for William Hill, the betting company.
While awaiting the transition, Bengtsson will be a non-executive for Hostelworld. It was also confirmed by Cawley, who holds non-executive roles at Ryanair and serves as chairman of Winthrop, a data centre developer, that Hostelworld aims to settle the remaining €7.5 million of an AIB loan by June end, two years earlier than the envisaged timeline.
Cawley, speaking ahead of the company’s AGM on Thursday, stated, “I am pleased to report that trading remains consistent with the trends outlined in our March preliminary results continuing into 2024.” He added optimistically, “Building on 2023’s strong performance, we are confident we can deliver high single-digit booking and revenue growth, in line with company guidance.”
To help manage the repayment of a significant €28.8 million loan taken out from US-based HPS Investments during the Covid-19 pandemic when the travel industry experienced a severe downturn, Hostelworld secured a loan of €17.4 million from AIB one year ago. The lower-interest AIB loan is currently being paid off with the help of substantial cash generation.
The company, under the leadership of CEO Gary Morrison, declared in March that its earnings before tax, interest, depreciation, and amortisation for 2023 amounted to €18.4 million. This is a significant rise from the €1.3 million earnings reported in 2022, when the travel industry was starting to recover from the pandemic.
It was further disclosed by the company in March that it has undertaken to repay around €9.6 million in pending tax dues built up during the pandemic over the next three years. Wednesday was the last day for Irish companies who availed the relief scheme to clear their tax liabilities immediately or negotiate a repayment plan with Revenue.