A Hostelworld affiliate in Jaisalmer, India.

Hostelworld finds backers, but not among its own ranks

The Dublin-based online backpackers’ booking service this week rallied investors and banks to see it through the pandemic. Yet despite commitments to build significant personal stakes in the business, the company’s executive directors have yet to do so.

26th Jun, 2020 - 5 min read

The €18.7 million raised by Hostelworld this week across equity and short-term debt shows that the company can still convince financiers to back it in the face of Covid-19 uncertainty. Yet it is by no means out of the woods – as illustrated by the low appetite top executives and directors have shown to invest in their own plan for the business.

On Thursday, the Dublin-based global hostel booking website announced that it had completed a share placing worth £13.8 million, with one unnamed existing shareholder pledging another £1 million in a conditional share subscription. If both go ahead, Hostelworld will have increased its existing share capital by...

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