Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Hotels

Hotel Brand Selina Sees Upswing in Financial Performance

9 months ago

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.

Selina's earnings report

Hotels

Selina to Offer Shareholders Rewards at Its Hotels and Co-Working Spaces

11 months ago

Buying a share in a company typically involves hoping the stock price rises over time and maybe means sharing in dividends. But Selina, an upstart hospitality brand, said on Wednesday it has a new enticement for people to buy its stock — discounts and freebies at its properties.

“Today, investing extends beyond the balance sheet,” said co-founder and CEO Rafael Museri.

Selina shareholders will be able to enjoy upgrades at the company’s hostel-style lodging, discounts or free breakfasts at its restaurants, lake checkouts, access to co-working spaces, and “exclusive event invitations,” depending on a variety of factors via the Selina Shareholders Program.

Selina isn’t the only travel company to try this. Carnival Cruise Lines, Norwegian Cruise Lines, and Royal Caribbean Cruise Lines have long offered onboard credit per stateroom on select sailings to confirmed shareholders. Intercontinental Hotels Group (IHG) has for years let shareholders enjoy discounts at their hotels if they book through a private website available by emailing the company’s registrar with proof a person holds shares in certified form.

But Selina has innovated, making the process to verify that someone holds shares fully digital. The process appears to be more seamless than what other travel companies have offered.

On Selina’s investor page, shareholders can link their online, U.S.-based brokerage account for verification. Other eligibility requirements can be satisfied online, and bigger investors can enjoy bigger benefits. After vetting, the company aims to send shareholders access to benefits within five business days.

“We extend a special thank you to retail-focused investor relations agency, Equity Animal, along with our technology partner, Stakeholder Labs, for their collaboration in creating the Selina Members Club,” said Sam Khazary, executive vice president and global head of corporate development.

”The Selina Members Club is not only a strategic move to strengthen relationships with customers who are also shareholders,” Khazary said. “It also serves as an expression of gratitude for their steadfast support.”

Hotels

Selina’s Delayed Stock Market Debut Now Scheduled for Oct. 21

2 years ago

More than nine months after revealing its ambitions to list on the New York Stock Exchange, at a $1.2 billion valuation, self-styled lifestyle and experiential hotel company Selina has set a date to go public, by merging with BOA Acquisition Corp — a special purpose acquisition company (SPAC).

The pair announced Monday that the registration statement filed in December last year was declared effective by the Securities and Exchange Commission on Sept. 30. It originally planned to go public in the first half.

Now, if the merger partner’s shareholders approve the deal at a special meeting Oct. 21, and other conditions are satisfied, Selina’s common stock would start trading under the symbol “SLNA” following the closing.

Selina expects to raise $54 million in PIPE (private investment in public equity) proceeds, up to $231 million in cash from BOA’s trust account and $118 million from subscriptions to the $147.5 million principal amount of 6% senior unsecured convertible notes due 2026.

The money raised will be used to fund operations and continue its plans to achieve profitability.

Selina’s been fairly active in the past few months, with new partnerships including freelancer platform Fiverr and a party thrown for potential investors just weeks ago.

In the first half of the year it has opened 3,368 bed spaces within 13 properties in Greece, Australia, Portugal, Panama, the U.S, Israel and new location Morocco.

It also signed 7,374 bed spaces within 17 new properties and expansions across Australia, the U.S., Greece, Mexico, Portugal, Panama and Israel. This brings the total count at the end of the first half to 163 open and secured locations in 25 countries.

“We continue the positive momentum to a record year ahead; we keep being true to our mission by connecting our brand to local guests, remote workers, and digital nomads. In the first half of this year, we increased our total revenue by 142 percent and occupancy by 60 percent compared to the same period in 2021,” said Rafael Museri, co-founder and CEO of Selina, which mainly targets millennial and Gen Z travelers.

Selina was founded in 2014.

Hotels

Selina Files Paperwork to Move a Step Closer to Going Public Through SPAC

2 years ago

Hospitality brand Selina has filed paperwork with the U.S. Securities and Exchange Commission to take another step in going public through a merger with special purpose acquisition company BOA Acquisition Corporation.

The timing is still vague, however.

“The proposed SPAC merger, which has been approved by the board of directors of BOA, is expected to be completed as soon as practicable, subject to approval by the shareholders of BOA, the effectiveness of the registration statement, and other customary closing conditions,” the company said.

Selina’s merger, which was originally due to close in the first half of this year, could see the company end up being valued at $1.2 billion. The brand generated $39.9 worth of revenue during the first quarter this year, a 150 percent increase from the same period last year.

Hotels

Selina Pushes Back Its SPAC Deal

2 years ago

Hospitality brand Selina has said it now aims to go public in the third quarter of 2022. Originally its merger with BOA Acquisition Corp — a special purpose acquisition company (SPAC) — was due to close in the first half of the year.

The listing update comes as the brand, which targets millennial and Gen Z travelers, posted revenue of $39.9 million for the first quarter of this year, which was up 150.8 percent increase on last year’s quarter.

It also signed or opened 11 properties in the first quarter: five new locations in Israel, Australia and Brazil and six in Morocco, Portugal, the UK and Israel. Currently it has 155 open and secured properties.

Selina wants to grab the attention of investors who want to tap into the growing number of upwardly mobile millennial workers. After its SPAC, which could value the firm at $1.2 billion, the combined company will operate as Selina Hospitality Plc and trade on the New York Stock Exchange under the symbol “SLNA.”