Hostelworld said that it was evaluating its future funding requirements and was actively evaluating both debt and equity options.
The company said that while the positive news around vaccination programmes was welcomed, “the timing of the recovery remains uncertain”.
As at 31 December, the group's net cash position stood at €18.2m, with current liabilities of €20.7m.
The group was in negotiations with selected lenders over a new €30m debt facility. The proposed facility was expected to have a contractual maturity of five years, at a cost in the low to mid-teens, with other conditions, including a minimum liquidity covenant, security and warrants provisions, in line with current market practice for facilities of this nature.
The company said: “Global travel demand remained muted throughout Q4 2020 with ongoing travel restrictions continuing to severely impact the global travel industry.
“The trading deterioration we had experienced since the end of August 2020 continued throughout Q4 2020, with minimal booking demand and ABV contraction primarily due to bed price deflation.”
Gary Morrison, CEO, said: "Covid-19 has had a prolonged and significant impact on our business and the entire global travel industry. We have taken swift action to protect the business and improve the core platform to position the business well for when demand returns. Given the prolonged nature of the restrictions, we are now actively assessing ways to strengthen our balance sheet.
“The board and I remain confident that the group's enhanced service offering, and competitive positioning will provide a strong platform to deliver growth when normal travel patterns resume, delivering long-term future upside for our shareholders."