Selina Hospitality has fallen into administration due to non-payment of debt.
The lifestyle hospitality company with a focus on digital nomads has appointed administrators to explore the sale of some or all of the group’s operating subsidiaries and assets. This comes after it failed to make payment on a $50 million loan from IDB Invest and on July 15 failed to make an interest payment of $455,000. As a result, IDB can take over the collateral that Selina has provided, which includes many of the company’s assets in Latin America.
Selina's portfolio comprises over 100 properties across more than 20 countries.
Selina went public on NASDAQ in 2022 and was valued at $1.2billion. However, it now has a market cap of just $13.08 million and will be delisted from the stock exchange.
Andrew Johnson, Samuel Ballinger and Ali Khaki of FTI Consulting have been appointed as joint administrators.
What they said
Andrew Johnson, senior managing director at FTI Consulting and one of the joint administrators said: “Unfortunately, the company was unable to reach its growth aspirations following the Covid-19 pandemic. The group subsequently struggled to raise sufficient capital to deliver a turnaround due in a large part to increased interest rates and weaker trading performane."
The joint administrators are considering options for the company on an accelerated basis and we will continue to support regional management where possible to minimise disruption to guests, employees and other stakeholders. However, as a result of the insolvency, Selina Hospitality PLC is unable to continue to provide financial support to the company’s subsidiaries.”