A new brand that has transformed and revolutionized the hospitality industry called Selina announced a PSPC deal on Thursday.
Benzinga breaks the SPAC deal and shares the thoughts of the man behind the SPAC in going public.
The SPAC agreement: Selina is become public via a SPAC merger with BOA acquisition company (NYSE: BOAS), a SPAC led by the CEO, President and Founder Brian friedman. The deal values Selina at a net worth of $ 1.2 billion.
The new company will be listed as Selina Hospitality with an SLNA ticker on the New York Stock Exchange.
About Selina: Operating as the largest hotel brand targeting Millennials and Gen Z users, Selina operates with a lightweight asset model and targets the $ 350 billion travel industry for its age demographic.
The company operates more than 130 units worldwide. Each unit is designed by local artists and developers. The company’s sites are operated in North America, South America, Europe and the Middle East.
Friedman told Benzinga it takes about 120 days to convert an existing, underperforming hotel to a Selina property, compared to a year to convert a hotel to a new brand.
Selina offers wellness classes, yoga classes, gyms, restaurants and remote work areas available to local residents, increasing income opportunities.
Ninety percent of hotel costs are funded by financial partners as part of Selina’s business model.
Related Link: Selina Opens Chicago Location On The Magnificent Mile
Taking Selina in public: Friedman told Benzinga he looks for trends when making investments, including purchases Tesla Inc (NASDAQ: TSLA) and Roblox Inc (NYSE: RBLX) from her kids asking her to own a Tesla electric vehicle and spend in-game money with Roblox.
“When it comes to PropTech investing, I’m looking for platforms that impact my real estate investments,” Friedman said, adding that Selina had disrupted the space with her targeted approach and audience.
Millennials and Gen Z users are looking for a democratization of travel and Selina is the first to deliver it, Friedman added.
Selina is the first hotel brand designed in this way, with Marriott International (NASDAQ: MAR) The Moxy brand is the only thing that came close to Selina, according to Friedman.
“These are Airbnbs for Millennials and Gen Z and Gen X.”
One area that might be of interest to a younger traveling population is the ability to pay with Bitcoin (CRYPTO: BTC) and other currencies to limit fees and currency risks.
“It’s important because Millennials have Bitcoin, they want to pay in Bitcoin.”
Friedman said additional cryptocurrency payment options could be considered in the future.
Future growth: Selina has $ 350 million in committed capital from partners for continued international expansion. The funding could add more than 40,000 new beds to the company’s portfolio by 2025.
One area Friedman is particularly excited about is the growth of Selina’s subscription product, which complements its existing pay-as-you-go product.
“It’s a game-changer,” Friedman said of Selina’s Nomad Passport subscription offering.
Subscribers can pay a flat rate each month and have the flexibility to travel from city to city, see the world, and work remotely. This provides annual recurring income for Selina and creates an affordable and accessible rental product for the everyday man, according to Friedman.
Pent-up travel demand could be a catalyst for hotel stocks, including Selina.
“Coming out of COVID-19, we think this is the golden age of travel.”
Friedman said Selina has a differentiated business model and long-term profit potential for investors. The company projects revenue of $ 1.2 billion by fiscal 2025. Selina expects positive EBITDA by the first quarter of fiscal 2023.