Selina Hospitality - Case Update

Andrew Johnson, Samuel Ballinger and Ali Khaki of FTI Consulting, the joint administrators of Selina Hospitality (NASDAQ:SLNA), have revealed what led to their appointment and how they were able to achieve a sale of the company.

Selina is a London-based global hospitality brand built to address the needs of millennial and Gen Z travelers, blending accommodation with coworking, recreation, wellness and local experiences. The company was established in 2014 and listed on the Nasdaq in October 2022, with its portfolio growing to circa 100 locations and 24,300 open bedspaces across 22 countries and six continents.

Following the Covid-19 pandemic and the impact on occupancy, the company and larger corporate group were unable to reach their growth aspirations and suffered a significant deterioration in value. Throughout 2023 and 2024, the group struggled to raise sufficient capital to deliver a successful turnaround and failed to repay a US$50 million loan due to IDB Invest in July 2024. Despite various attempts to improve liquidity, including disposing of approximately 43% of the equity in its Australian business, the company ultimately entered administration on 22 July.

Following their appointment, the joint administrators commenced an accelerated M&A process which involved 58 parties signing NDAs and 14 non-binding offers being received. Ultimately, Collective Hospitality was selected as the preferred bidder due to both the value of its offer and deliverability in the condensed timeframe required. The sale successfully completed on 27 August.

A small dividend may be available to unsecured creditors.

The joint administrators’ proposals can be accessed HERE.