Hotel company Selina debuted as a publicly traded company on Thursday after completing its merger with special-purpose acquisition firm BOA.
This marks the start of a new phase of growth for the company which aims to capitalize on the resurgence of travel among Millennials and Gen Z travellers.
Selina co-founder and CEO Rafael Museri described it as a major milestone for the company.
“Completing this transaction is further validation of our highly differentiated hotel offering, we can scale the brand and our unique destinations to travelers and locals around the world like never before,” Museri said.
“We look forward to leveraging this capital to drive long-term profitable growth, introduce new offerings that facilitate meaningful connections, and enhance our technology to support our rapid global expansion.”
Last December, Selina signed an agreement to go public by merging with BOA Acquisition Corp, a publicly traded special purpose acquisition company that raised $200 million in an initial public offering in February 2021.
“Selina is one of the few hospitality companies that is truly revolutionizing travel and addressing a significant market need,” said Ben Friedman, president and chief financial officer of BOA Acquisition Corp.
“We are proud to have played a role in helping this dynamic lifestyle brand go public, and we look forward to continuing our collaboration with Rafi and the rest of the talented team at Selina as they develop the platform. Selina and are executing their strategy to achieve profitability.”
Through the business combination, Selina is expected to earn US$54 million in capital through its private placement financing, and US$118 million from subscriptions to the principal amount of US$147.5 million of unsecured convertible notes from first rank due in 2026 to help fund operations and support plans to achieve profitability.
The lifestyle hotel company recently announced a 142% increase in revenue in the first half and a 60% increase in occupancy rate compared to the same period in 2021.
“We are continuing our positive momentum for a record year ahead; we stay true to our mission by connecting our brand to local customers, remote workers and digital nomads,” said Museri.
The Panama-born brand debuted in Australia in May 2022 with the launch of Selina Central Melbourne and Selina St Kilda. He has since opened a property in Brisbane’s CBD.
“We opened 3,368 beds in 13 properties in Greece, Australia, Portugal, Panama, the United States, Morocco and Israel,” added Museri.
“We also signed 7,374 beds in 17 new properties and extensions in Australia, the United States, Greece, Mexico, Portugal, Panama and Israel. This brings the total number at the end of the first half of 2022 to 163 open and secure locations in 25 countries on six continents.
The combined company will continue to be led by Museri alongside the rest of Selina’s current management team.