EXCLUSIVE: How Selina Is Disrupting The Hospitality Industry, Targeting Millennials + Gen Z And Growing With SPAC Deal

A new brand that has transformed and disrupted the hotel industry called Selina announced a SPAC deal Thursday.

Benzinga breaks down the SPAC deal and shares thoughts from the man behind the SPAC taking the company public.

The SPAC Deal: Selina is going public via a SPAC merger with BOA Acquisition Corp BOAS, a SPAC led by CEO, Chairman and Founder Brian Friedman. The deal appraises Selina at an equity value of $1.2 billion.

The new company will trade as Selina Hospitality with a ticker of SLNA on the New York Stock Exchange.

About Selina: Operating as the largest hospitality brand targeting Millenials and Generation Z users, Selina operates with an asset-light model and is targeting the $350 billion travel industry for its age demographics.

The company operates over 130 units worldwide. Each unit is designed by local artists and developers. Locations from the company are operated in North America, South America, Europe and the Middle East.

Friedman told Benzinga it takes around 120 days to convert an existing underperforming hotel into a Selina property, compared to one year to convert a hotel into a new brand.

Selina offers wellness classes, yoga classes, gyms, restaurants and remote work areas that are available to local residents, increasing the revenue opportunities.

Ninety percent of hotel costs are funded by capital partners under Selina’s business model.

Related Link: Selina Opens Chicago Location On Magnificent Mile 

Taking Selina Public: Friedman told Benzinga he looks for trends when making investments including buying Tesla Inc TSLA and Roblox Inc RBLX stock based on his kids asking about owning a Tesla electric vehicle and spending money in-game with Roblox.

“When it comes to PropTech investing, I look for platforms that impact my real estate investments,” Friedman said, adding that Selina has disrupted the space with its targeted approach and audience.

Millenials and Gen Z users are searching for a democratization of travel and Selina is the first to offer it, Friedman added.

Selina is the first hotel brand designed this way, with Marriott International MAR brand Moxy the only thing that has come close to Selina, according to Friedman.

“They are the Airbnb for Millenials and Generation Z and Generation X.”

One area that might excite a younger traveler demographic is the ability to pay with Bitcoin BTC/USD and other currencies to limit fees and exchange risks.

“It’s important because Millenials have Bitcoin, they want to pay in Bitcoin.”

Friedman said that additional cryptocurrency payment options could be considered in the future.

Growth Ahead: Selina has $350 million in committed capital from partners for continued international expansion. The funding could add over 40,000 new beds to the company’s portfolio by the year 2025.

One area Friedman is particularly excited about is growth of Selina’s subscription product, which complements its existing pay-as-you-go product.

“This is game changing,” Friedman said of Selina’s Nomad Passport subscription offering.

Subscribers can pay a flat rate each month and have the ability to move around from city to city, see the world and work remotely. This provides annual recurring revenue for Selina and creates an affordable, accessible rental product for the everyday man, according to Friedman.

Pent up travel demand could be a catalyst for hospitality stocks, including Selina.

“Coming out of COVID-19, we believe it’s the golden age of travel.”

Friedman said Selina has a differentiated business model and long term earnings potential for investors. The company is forecasting revenue of $1.2 billion by fiscal 2025. Selina expects to be EBITDA positive by the first quarter of fiscal 2023.