Skift Take

Selina has been partly counting on the patience of owners and financial partners as it restructures to live another day. But at least one hotel owner ran out of patience.

Hotel operator Selina has faced ongoing financial difficulties, and the latest one emerged this week when a landlord repossessed the brand’s only hotel in London.

A note dated February 4 posted on the Selina Camden — shared by a source who requested anonymity — said the property had been repossessed and the building’s locks had been changed. The hotel on 88-89 Chalk Farm Road opened in May 2021.

The owner of the property is Rose Two, which operates Rose Pubs and is a subsidiary of Solitaire Restaurants Holdings. Rose Two had sent a letter to Selina saying that it had failed to pay its quarterly rent and tax of £180,000 (about $226,000) due at Christmas or to meet a subsequent extension to February 1.

“This unforeseen situation has prompted immediate action,” a Selina spokesperson told Skift. “We are proactively reaching out to all impacted guests. We are firmly committed to minimizing any disruption and actively working towards a resolution that addresses all booking concerns in a timely and comprehensive manner.”

As of Wednesday, Skift’s searches found that Selina was still accepting bookings for the property for dates in May and June.

“We understand the concerns regarding the situation at our Camden hotel,” the Selina spokesperson said. “We are currently engaged in a comprehensive evaluation of the situation and are taking necessary actions in response to the landlord’s recent actions.”

The news comes against a backdrop of Selina — having always been unprofitable — engaging in a turnaround with a financial backer’s help.

On January 26, Selina filed a revised prospectus for shareholders, which detailed a restructuring plan that includes multiple financings, changes to convertible debt terms, and the likely issuance of more shares.

The moves enabled the company to receive $35.5 million in funding commitments while slashing $52.3 million in debt. Osprey, the owner of Global University Systems (a network of universities and online learning programs), has become a major voice and stakeholder in Selina due to the restructuring. Selina has claimed an upswing in key performance metrics in recent months.

UPDATE: On Feb 5, two days before this article, Selina said it had failed to make a payment it had agreed to make as part of last year’s restructuring. It said that as of Feb. 5 it “may need to consider formal restructuring options in relation to the indebtedness due under the 2026 Notes and its other liabilities.”

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.

Have a confidential tip for Skift? Get in touch

Tags: future of lodging, london, selina

Photo credit: The exterior of the Selina Camden hotel. Source: Selina.

Up Next

Loading next stories