Alternative accommodation business Selina is planning a stock market floatation via special purpose acquisition company (SPAC).
Selina, which was launched in 2015, is combining with existing SPAC, New York-based BOA Acquisition Corp., with gross proceeds of $285 million anticipated from the deal.
Selina, which expects to be EBITDA positive by the first quarter of 2023 and bring in revenue of $1.2 billion by 2025, says the funds will help it drive international expansion and invest in its technology.
The transaction is expected to close in the first half of 2022 when the combined companies, which are expected to have a value of about $1.2 billion, will trade on the New York Stock Exchange as Selina Hospitality.
Selina has 134 properties across North and South America, Europe and the Middle East with 83 of those open.
The company targets remote workers and digital nomads with its accommodation concept which identifies underperforming hotels and turns them into “cultural hubs” for its audience.
London-based Selina has raised funding of about $350 million, including $100 million announced in April 2019, and plans to add 40,000 new beds to its portfolio by 2025.
Rafael Museri, CEO at Selina, says: “We are seeking to redefine the future of accommodation by creating a brand and curating experiences that strongly resonate with our customers. Millennials and Gen Z travelers are looking for authenticity and top-tier experiences at every step – they want to be immersed in the local culture of each location they visit.
"By partnering with local artisans to design culturally relevant and inspiring destinations, we’re creating opportunities for them to forge lifelong connections within the rapidly expanding Selina community. We’ve spent the last six years building and scaling an efficient and differentiated platform, and this transaction will enable us to bring Selina to more locations and travelers across the world.”
Brian Friedman, CEO of BOA, adds: “Selina is cornering a large addressable market by providing accommodations and experiences that aren’t readily replicated. The platform is highly efficient with the capability to scale rapidly and produce attractive unit economics. The Selina brand transcends hospitality and has created a loyal community and lifestyle that customers want to belong to long after their first stay.
"The company has proven it can deliver for both its guests and its real estate partners. We anticipate Selina will continue to build on its significant growth in the coming years as the ability to work from anywhere propels travelers to experience the world in a way their elders never could – as digital nomads.”
Selina recently launched a subscription service called Nomad Passport enabling guets to stay in any of its properties for as long as they want and with access to co-working, local events and wellness activities.
Last year the company acquired Remote Year, a Chicago-based company offering programs for customers to live and work in different cities.