Michael Cawley is to retire as chairman of Irish online accommodation booking company Hostelworld, in October, after 9 years in the role.
Mr Cawley – the former deputy CEO of Ryanair and a former chair of Fáilte Ireland – formally announced his retirement while addressing Hostelworld’s annual general meeting today.
Ulrik Bengtsson as chair designate and an independent non-executive director. Mr Bengtsson has previously held senior roles with Virgin Media O2 and William Hill amongst others.
Paul Duffy – former chairman and CEO of Pernod Ricard North America – has also joined the Hostelworld board as an independent non-executive director.
Mr Cawley told shareholders at the AGM: “It has been a privilege for me to serve as chairman of Hostelworld and I am proud of the achievements of the board and management team. The business demonstrated its resilience during Covid, subsequently pivoting into a social network OTA, delivering strong growth and a return to profitability. I remain confident in the Company’s long-term ability to enhance shareholder value.
“I am pleased to welcome Paul Duffy and Ulrik Bengtsson to the Board and I am confident that under the leadership of Ulrik, who will succeed me as Chair and Nomination Committee Chair from 21 October next, the Company will continue to prosper.”
Mr Bengtsson, Chair Designate, said: “I am delighted to be joining the Board of Hostelworld at this stage in its development and I look forward to working with the Board and with the broader management team. I was attracted to the role of Chair because of Hostelworld’s uniquely differentiated proposition as a Social Network powered Online Travel Agent (OTA), the quality of its operating model and the exciting opportunities to continue increasing shareholder value over the coming years.”
Updating on the company, Mr Cawley said Hostelworld remains well-positioned and will be paying off debts sooner than expected.
“I am pleased to report that trading remains consistent with the trends outlined in our March Preliminary Results continuing into 2024. In particular, our highly differentiated social strategy continues to deliver growth in market share whilst marketing costs remain at the low end of the guidance range. Building on 2023’s strong performance, we are confident we can deliver high single-digit booking and revenue growth, in line with company guidance.
Accordingly, the business now expects to repay the remaining €7.5m balance of the AIB term loan by the end of H1 2024, two years ahead of schedule. This early repayment will deliver a cash interest saving of €0.5m, over the remaining lifetime of the facility, and represents another positive milestone for the business. It is also our intention to commence a share purchase programme, in the second half of the year, which will address the dilution to shareholders of shares issued in late April 2024 in connection with the Company’s Long Term Incentive Plan, subject to market conditions.“
