Investment Thesis
The market has crushed Hostelworld's (HSWLF) share price, sending it tumbling 60% YTD. Given its solvency, variable cost structure, and customer demographics, HSWLF has about a 70% upside.
Background
Hostels are a hybrid industry as they sell both a social and a lodging experience. The typical hosteler is about 25 years old, price conscientious, and travels either by themselves or with a close friend for weeks at a time. These trips are usually booked spontaneously (within a week) and hostelers are looking to meet new people and explore new areas with them. Hostels