The
Singapore-based experiential travel brand acquires a failed brand with 100
hybrid hotels/hostels.
LONDON – Singapore-based Collective Hospitality has
confirmed its acquisition of the majority of Nasdaq delist Selina Hospitality to
try to salvage the “digital nomad” brand and expand its experiential-driven
lifestyle portfolio. Terms of the deal have not been disclosed.
On July 22, the Selina board resolved to appoint Andrew
Johnson, Samuel Ballinger, and Ali Khaki of FTI Consulting as joint
administrators of the company, assuming responsibility for management of the company’s
affairs and launching an accelerated sales process for the operating
subsidiaries and certain other assets.
On August 22, Collective acquired the majority of the
operating subsidiaries of Selina PLC from the Joint Administrators, which
includes approximately 100 hybrid hotels/hostels in 22 countries, including
cities in North America, Latin America, Europe and Asia.
The Selina properties will be combined with Collective’s
other lifestyle social accommodation resorts including Slumber Party, Bodega
Hostels, and Socialtel resorts.
Selina’s innovative approach to blending work, leisure, and culture aligns perfectly with its vision of creating memorable experiences for our millennial and Gen Z guests. This acquisition not only expands our portfolio of properties but also strengthens our commitment to redefining hospitality in the modern era.
Gary Murray
Founded in 2015 by Daniel Rudasevski and Rafi Museri, Selina
has struggled since its October 2022 IPO and a valuation as high as $1.2
billion, reporting financial performance just once and its stock price in a
continual free fall.
The business model had the principals identifying opportunities
with a proprietary system that found underperforming hotels, then renting them
from the landlord and repositioning them for next-gen bleisure and leisure travelers.
In 2018 and 2019, the company opened 24 new sites each year, and another 55
through 2022.
But Selina consistently recorded losses, including $198
million in 2022 and $46 million in the first half of 2023 as it started to
close hotels, halt openings and cut staff.
Selina attempted to secure rescue capital to keep the
business afloat as well as cut costs and close some properties. In December
2023, it received a controlling $68 million cash injection and new debt from
Osprey, but it did not stave off delisting threats from the Nasdaq and eventual
insolvency early this month when the business was transferred to trustees who
auctioned off its assets.
Nonetheless, Collective Hospitality CEO Gary Murray stated,
“Selina’s innovative approach to blending work, leisure, and culture aligns
perfectly with its vision of creating memorable experiences for our millennial
and Gen Z guests. This acquisition not only expands our portfolio of properties
but also strengthens our commitment to redefining hospitality in the modern
era.”
With the integration of Selina, Collective plans to introduce
more guest experiences, expand its global reach and explore new opportunities
in the lifestyle and experiential travel sectors.
Leadership stated the combined expertise and resources will
drive continued growth and create exceptional value for guests, employees and
stakeholders.
Collective Hospitality is owned by Destination Group,
founded by Gary Murray in 1996 and has been rebranding and repositioning 4- and
5-star hotels in Southeast Asia since 1997.
The company has grown and expanded into the F&B business
with Destination Eats and lifestyle millennial and Gen Z accommodation business
with Collective Hospitality through a portfolio of approximately 15 resorts
across the Asia Pacific region focused on adventure, sustainability, community,
innovation, and guest satisfaction.