Selina Aims to Go Public at $1.2 Billion Valuation Via Blank Check Deal

Selina, a hospitality brand focusing on millennials, said on Thursday it would go public via a merger with blank-check firm BOA Acquisition Corp in a transaction valuing the business at approximately $1.2 billion.

The deal includes a $70 million private investment in public equity, or PIPE, from South Light Capital, MORE Investment House, and Ronald Cohen. The merger is forecast to settle in the first half of 2022, with the company trading on the New York Stock Exchange under the symbol "SLNA."

Selina manages 134 properties worldwide. The company has placed bets that trends in remote working, wellness-focused lifestyles, and subscription models will gain momentum over time. Last year it bought Remote Year, a subscription-based remote working program.

The hospitality brand said it has sold more than 2,600 subscriptions for guests to hopscotch its properties and that Remote Year continued to increase its rate of subscription sales despite the pandemic.

Selina projects next year's revenues will be $234 million. The company's valuation is about 4 times its estimated enterprise value. That's broadly in line with current valuations for major hotel groups. Intercontinental Hotels Group trades at a market capitalization of 3.8 times its revenue, while Hilton and Wyndham trade at 5.8 times their annualized revenue.

Selina CEO Rafael Museri has been one of the most forward-thinking leaders in hospitality. A prediction Museri made two years ago at Skift Forum Europe about how companies would have to allow all their employees the option of remote work within the next decade happened even sooner than he expected due to the pandemic.

See Selina's investor presentation, below.