Hotel Brand Selina Sees Upswing in Financial Performance
Key Points
- Selina reported a 15.9% increase in revenue year-over-year for the second quarter, driven by higher occupancy rates and reduced corporate overhead.
- The company reduced its losses, reporting $700,000 in adjusted EBITDA compared to a $5.8 million loss in the previous year.
- Selina is executing a real estate optimization plan and received a $10 million investment as part of a larger strategic funding initiative.
Summary
Selina, a hotel brand targeting youth travelers, reported a 15.9% increase in revenue for the second quarter, driven by higher occupancy rates and reduced corporate overhead. The company also narrowed its losses significantly, reporting $700,000 in adjusted EBITDA. Selina is focusing on optimizing its real estate portfolio and has secured a $10 million investment as part of a strategic funding plan. Despite these improvements, Selina's stock remains below $1, posing a delisting risk on the Nasdaq exchange.
Selina, a hotel and experiences brand focused on youth travelers, said on Wednesday that its financial metrics were trending in the right direction as it reported earnings results.
In the second quarter, the company generated $52.5 million in revenue, a bump of 15.9% year-over-year. Factors included higher occupancy rates, reductions in corporate overhead, and essentially higher revenue per customer.
The company also narrowed its losses. It reported $700,000 in adjusted earnings before interest, taxes, depreciation, and amortization, compared to a $5.8 million loss in the same period a year ago.
Selina said it was "aggressively executing a comprehensive real estate portfolio optimization plan" that "includes renegotiating all leases through abatements, deferrals, and terminations."
In the quarter, the company also collected $10 million as the first phase of a planned strategic investment of up to $50 million led by Global University Systems (GUS), which runs for-profit universities. It also drew $10 million under its $50 million credit facility with Latin America's Inter-American Development Bank (IDB).
Selina's stock price dipped below $1 last month, where it has remained. If Selina’s stock remains below $1 for about a month, the Nasdaq exchange will issue a notice of a plan to delist the shares from trading. Selina will then have 180 days to push the value of shares higher.
The company aims to report a continued upward trend, which could appeal to investors.
"Selina continues to focus on three key strategic areas: improving cash flow, advancing toward profitability, and building our brand," said Rafael Museri, co-founder and CEO, in a statement.
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