LONDON – Singapore-based Collective Hospitality has confirmed it will acquire a majority stake in Nasdaq-delisted Selina Hospitality to save the “digital nomad” brand and expand its experience-led lifestyle portfolio. Terms of the deal were not disclosed.
On July 22, Selina’s board of directors voted to appoint Andrew Johnson, Samuel Ballinger and Ali Khaki of FTI Consulting as joint administrators of the company, with responsibility for managing the company’s affairs and initiating an expedited sale process for the operating subsidiaries and certain other assets.
On August 22, Collective acquired from the Joint Administrators the majority of Selina PLC’s operating subsidiaries, which include approximately 100 hybrid hotels/hostels in 22 countries, including cities in North America, Latin America, Europe and Asia.
The Selina properties will be merged with Collective’s other lifestyle accommodation resorts, including Slumber Party, Bodega Hostels and Socialtel resorts.
Founded in 2015 by Daniel Rudasevski and Rafi Museri, Selina has struggled since its IPO in October 2022 with a valuation of up to $1.2 billion. The company has only been able to provide a financial report once and its share price is in continuous free fall.
The business model required owners to use a proprietary system to identify opportunities, identify underperforming hotels, then lease them from the landlord and reposition them for the next generation of bleisure and leisure travelers. The company opened 24 new locations each year in 2018 and 2019, and plans to open another 55 through 2022.
But Selina has posted losses across the board, including $198 million in 2022 and $46 million in the first half of 2023, as the company began closing hotels, halting openings and cutting staff.
Selina tried to raise rescue capital to keep the business afloat, cut costs and close some properties. In December 2023, the company received a controlling capital injection of $68 million and new debt from Osprey, but could not fend off threats of a Nasdaq delisting and outright bankruptcy earlier this month when the company was transferred to trustees who auctioned off its assets.
Gary Murray, CEO of Collective Hospitality, nevertheless stated: “Selina’s innovative approach to combining work, leisure and culture aligns perfectly with its vision of creating unforgettable experiences for our Millennial and Gen Z guests. This acquisition not only expands our property portfolio, but also strengthens our commitment to redefining hospitality in the modern era.”
With the integration of Selina, Collective plans to offer more experiences to its guests, expand its global reach and explore new opportunities in lifestyle and experiential travel.
Management stated that the combined expertise and resources will lead to further growth and create exceptional value for guests, employees and stakeholders.
Collective Hospitality, owned by Destination Group, was founded in 1996 by Gary Murray and has been redesigning 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 the lifestyle accommodation business for millennials and Gen Z with Collective Hospitality. The company has a portfolio of around 15 resorts across Asia Pacific, with adventure, sustainability, community, innovation and guest satisfaction at its core.
