HotelsMag March-April 2022 | Page 28

range from 15-20 years ) and close them . Because of the technology , about 80 % of deals are executed off market without brokers and generate a 20 % discount to market lease prices , according to Museri . Even better for Selina investors , about 90 % of the funding to convert properties comes from local real estate partners who take most of the risk . Selina remains asset light .
“ We believe that once a deal goes to bid and you have five traditional , big hospitality players bidding the price is going up and up ,” Museri says . “ I ’ ve seen that with my own eyes – how every bid increases the price . And I didn ’ t feel that I wanted to compete in this specific area .”
By January of 2022 , the Selina way had generated 144 open or secured properties across five continents ( 90 of which are fully operating ). In December 2021 alone , Selina opened six properties and six additional locations soft-launched in Australia , Brazil , Panama and more . This represents the highest-volume month of openings in the company ’ s history , at a pace of three per week . In addition , Selina had a strong 4Q21 and says it expects to exceed its 2021 revenue forecast of US $ 93 million .
Now , to supercharge the growth and take aim at global domination in the lifestyle space , in early December Selina announced it was going public via a SPAC through a merger with BOA Acquisition Corp . The combined company is expected to have an equity value of approximately US $ 1.2 billion and the deal is expected to close in the first half of this year .
With the pending SPAC , the business combination provides US $ 285 million in gross cash proceeds , including US $ 70 million in capital commitments comprising PIPE investments from institutional investors , including South Light Capital ( an affiliate of DigitalBridge ), MORE Investment House and Sir Ronald Cohen , alongside PIPE and backstop commitments from BOA ’ s sponsor and founder-led shareholders .
Proceeds will allow Selina to fuel international expansion , invest in proprietary technology , and attract and retain high-quality talent .
Selina expects to be EBITDA positive by Q1 2023 and generate approximately US $ 1.2 billion in revenue by 2025 .
“ Capitalizing the company is going to allow Selina to not only open individual assets , but explore portfolio transactions , and potentially strategic M & A that would expand the footprint of this brand ,” said BOA CEO Ben Friedman . “ And we firmly believe that this can , and will , be one of the largest hospitality companies and lifestyle and experiential brands globally . Our hope is to compete with all facets of the hospitality space just about everywhere in the world .”
Further elaborating on Selina ’ s growth , Museri said the brand has always relied on local people to tell them where they should build next based on where they want to travel . “ That ’ s how we build the roadmap ,” he says . “ So , when COVID hit and people were traveling in their own countries , Selina became one of the most attractive platforms for them . Overall , for us , COVID just made the brand and our business model even more relevant than ever . And our forecast for 2022 is we ’ re definitely going to more than double our revenue .”
Friedman said that to see a company perform at such a high level and to be able to take advantage of this shift in hospitality from traditional to more lifestyle and experiential , and to be targeting a subset and a demographic that was underserved in the broader space
“ THE KEY IS , IF YOU RELEVANT TO THIS GENERATION , THEY ENJOY BEING A PART OF THIS MOVEMENT … THE TEAM IS SERVING THEIR FRIENDS IN THEIR OWN COMMUNITY … THEY FEEL ATTACHED TO IT AND THE BRAND BECOMES PART OF THE COMMUNITY .”
– RAFAEL MUSERI
26 hotelsmag . com March / April 2022