# Selina Hospitality (2014 – 2024)

- URL: https://girisimcikafasi.com/en/startup-graveyard/selina/
- Sector: Travel
- Country: United Kingdom
- Total funding: unknown
- Unicorn: yes, peak valuation $1.2 billion
- Cause of closure: Ran out of cash

## What did it do?

Selina was a hostel and hotel chain that combined rooms, co-working and social space for Millennial and Gen Z travellers and remote workers. It was founded in 2014 and run by Rafael Museri and Daniel Rudasevski. It mostly leased or partnered on properties rather than owning them. It listed on Nasdaq on 27 October 2022 through a merger with BOA Acquisition Corp. and reported USD 183.9 million of revenue for 2022.

## Why did it shut down?

About 95.8% of BOA's shareholders redeemed at the merger, so the company never received the cash it had expected. It lost about USD 200 million in 2022 and its accumulated deficit reached USD 725 million. Having funded growth with short-term debt, it was squeezed as interest rates rose. In July 2024 it could not pay interest on its IDB Invest loan; on 22 July the board appointed FTI Consulting as administrators and the shares left Nasdaq. In August 2024 most of the subsidiaries running about 100 properties were sold to Collective Hospitality for an undisclosed price. The new owner moved 29 properties to its Socialtel brand in March 2025, and Selina Hospitality PLC entered creditors' voluntary liquidation on 7 May 2025.

## The story

Selina was founded in 2014. Rafael Museri and Daniel Rudasevski built a chain that put hostel, hotel and co-working space under one roof for digital nomads. Most buildings were leased or run through partnerships.

On 27 October 2022 it merged with BOA Acquisition Corp. and reached Nasdaq at about USD 1.2 billion. But about 95.8% of shareholders took their money back. In 2022 Selina lost about USD 200 million on USD 183.9 million of revenue.

Cash melted away. In July 2024 a USD 455,000 interest payment on its IDB Invest loan went unpaid. The lender accelerated USD 44.1 million, and on 22 July FTI Consulting was appointed administrator.

In August 2024 most of the subsidiaries running about 100 hotels and hostels passed to Singapore's Collective Hospitality. In March 2025, 29 properties moved to the Socialtel brand. The parent company entered liquidation on 7 May 2025, with more than 99% of its listed value gone.

## Lessons

- Do not fund a lease-heavy business like a software company: a loss of about USD 200 million on USD 183.9 million of 2022 revenue showed growth was not paying for itself.
- Do not book the cash from a SPAC merger in advance: when 95.8% of holders redeem, the expected capital never arrives. Build your plan on high redemptions.
- Do not carry long leases on short debt: even a small interest payment can accelerate USD 44.1 million at once, so read the default clauses from the start.

## Sources

- [Selina: The end? Hospitality chain facing insolvency after defaulting on loan](https://www.calcalistech.com/ctechnews/article/hyudh35oc)
- [Selina Hospitality PLC Form 6-K](https://www.sec.gov/Archives/edgar/data/1909417/000149315224028632/form6-k.htm)
- [Selina falls into administration](https://boutiquehotelnews.com/?p=42863)
- [Collective Hospitality announces opening of 29 former Selina properties under Socialtel brand](https://www.wysetc.org/2025/03/collective-hospitality-announces-opening-of-29-former-selina-properties-under-socialtel-brand/)
- [Selina Hospitality PLC insolvency](https://find-and-update.company-information.service.gov.uk/company/13931732/insolvency)
- [Selina sold out of insolvency 5 weeks after collapse](https://skift.com/2024/08/27/selina-sold-out-of-insolvency-5-weeks-after-collapse-exclusive)
- [Selina Hotels: When the Digital Nomad Dream Met Financial Reality](https://www.hospitalitynet.org/news/4131404/selina-hotels-when-the-digital-nomad-dream-met-financial-reality)
- [Wikidata](https://www.wikidata.org/wiki/Q110173599)