Selina Sold Out of Insolvency 5 Weeks After Collapse – Exclusive (Skift, August 27th, 2024)

Summary

Skift article by Sean O'Neill, dated August 27th, 2024, reporting that Collective Hospitality, a Singapore-based firm, has acquired most of the business assets of Selina, a hostel brand focused on young travelers. It states that Selina declared insolvency last month and was delisted from the Nasdaq stock market, and that the parties did not disclose a price. The deal, already completed, includes about 100 hotels, all essentially on long-term lease and managed by Selina, and Remote Year. Gary Murray, CEO of parent company Destination Group, is quoted on a 4- to 5-year gameplan to turn the business around. The page text stops at a subscriber notice.

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Hotels

Selina Sold Out of Insolvency 5 Weeks After Collapse – Exclusive

Sean O'Neill

August 27th, 2024 at 10:00 PM EDT

Photo Credit: Selina Casco Viejo Collective Hospitality

Skift Take

A fire sale gives a new lease on life to Selina, a brand that reinvented hostels for the TikTok generation but struggled after a debt binge.

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Collective Hospitality, a Singapore-based firm, has acquired most of the business assets of Selina, a hostel brand focused on young travelers.

The deal, announced Wednesday in Singapore, gives Selina another chance at life. Last month, Selina declared insolvency and was delisted from the Nasdaq stock market.

“Our 4- to 5-year gameplan with Selina is to go in and turn things around, drive more incremental revenue and profitability into the business, and create value in it,” said Gary Murray, CEO of parent company Destination Group, in an exclusive interview with Skift. “Ultimately, down the road, we can monetize that value.”

The parties didn't disclose a price for the deal. The transaction, already completed, includes about 100 hotels, all essentially on long-term lease and managed by Selina.

Remote Year, a travel company that lets employees work in a different city every month, is also included in the deal. Selina had acquir

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Key Points

- Selina was acquired by Collective Hospitality after declaring insolvency and being delisted from Nasdaq.
- The deal includes about 100 hotels and the company Remote Year.
- Collective Hospitality aims to enhance guest experiences, increase occupancy rates, and potentially rebrand some Selina properties.

Summary

Selina, a hostel brand focused on young travelers, has been acquired by Singapore-based Collective Hospitality just five weeks after declaring insolvency. The acquisition includes approximately 100 hotels and the company Remote Year, which Selina had previously acquired. Collective Hospitality, part of Destination Group, plans to revitalize Selina by enhancing guest experiences, increasing occupancy rates, and possibly rebranding some properties. Selina’s collapse serves as a cautionary tale of rapid expansion fueled by debt, but the new ownership sees potential in capturing the Gen Z market and leveraging hyper-local experiences.

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