Kudos to Rafael Museri and Daniel Rudasevski who co-founded Selina in 2015 and brought the company to this point. But investors face a tough decision on how to market this startup against traditional hosting groups.
Selina, a millennial-focused hotel brand, said on Thursday it would go public through a merger with blank check firm BOA Acquisition Corp in a deal valuing the company at around $ 1.2 billion .
The deal includes a $ 70 million private investment in public stocks, or PIPE, of South Light Capital, MORE Investment House and Ronald Cohen. The merger is expected to be finalized in the first half of 2022, with the company listed on the New York Stock Exchange under the symbol “SLNA”.
Selina manages 134 properties around the world. The company has bet that trends in remote working, wellness-oriented lifestyles and subscription models will gain momentum over time. Last year, she purchased Remote Year, a subscription-based remote work program.
The hotel brand said it had sold more than 2,600 subscriptions to guests to play hopscotch at its properties and that Remote Year continued to increase its subscription sales rate despite the pandemic.
Update July 16, 2021
Selina projects next year’s revenue to be $ 234 million. The valuation of the company is approximately 4 times its estimated enterprise value. This generally corresponds to the current valuations of the large hotel groups. Intercontinental Hotels Group is trading at a market cap of 3.8 times its revenue, while Hilton and Wyndham are trading at 5.8 times their annualized revenue.
Selina CEO Rafael Museri has been one of the hospitality industry’s most forward-thinking leaders. A prediction that Museri made two years ago at the Skift Forum Europe about how companies should allow all their employees the ability to work remotely over the next decade has come even earlier than expected due of the pandemic.
See Selina’s investor presentation below.