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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Selina Hospitality PLC | NASDAQ:SLNA | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.03 | 0.0285 | 0.0289 | 0 | 00:00:00 |
From Jan 2023 to Jan 2025
Selina Hospitality PLC ("Selina" or the “Company”), (NASDAQ: SLNA), the fast-growing lifestyle and experiential hospitality company targeting millennial and Gen Z travelers, today announced a business update on its operational performance and capital structure initiatives.
Executes Financing of Up to $50 Million
Selina has secured agreements for a strategic investment totaling up to $50 million led by an affiliate of Global University Systems ("GUS" or the “Investor”), a leading global higher education platform. This funding is part of the Company’s plan to strengthen its balance sheet as it continues on its path to achieving profitability and cash flow positive operations. The investment by GUS will be completed in multiple tranches as follows:
As part of its investment, the Investor will receive warrants to acquire additional shares in the Company at a premium to the current trading price, and have the ability to appoint two directors to Selina’s Board of Directors. These agreements, the details of which are included within a Report on Form 6-K filed today with the Securities and Exchange Commission, are part of the company's wider strategy to strengthen its balance sheet and continue on its path to profitability.
Rafael Museri, co-founder and Chief Executive Officer of Selina, said, "Securing this strategic investment from GUS marks a significant milestone for Selina. This transaction, a result of an exhaustive review of various alternatives, not only fortifies our financial standing as we work towards cash flow positivity and profitability, but also endorses our strategic goals and potential to create value for our shareholders. Our affiliation with GUS logically extends our commitment to providing exceptional experiences to an underserved group: students who learn abroad. As we work to streamline operations, curtail expenses, and enhance unit economics, we are grateful for GUS's trust in our vision and potential. My co-founder Daniel, I, and our investment vehicle Kibbutz Holding S.a.r.l., stand firmly committed to Selina's future. As part of this strategic investment, we are personally guaranteeing Selina’s obligations under the convertible debt arrangements, reinforced by a corporate guarantee from Kibbutz. This commitment reflects our unwavering dedication to steer Selina towards profitability.”
Aaron Etingen, Chief Executive Officer of GUS, expressed his enthusiasm about the partnership, stating, "As a global leader in higher education, GUS is proud to collaborate with Selina. Their inventive approach to hospitality aligns perfectly with our mission to foster innovative learning environments. Selina's unique blend of thoughtfully designed accommodations, coworking spaces, wellness offerings, and immersive local experiences is expected to resonate with our diverse student base. This includes approximately 100,000 full-time degree students under GUS and the broader community connected to FutureLearn - Europe’s largest online education platform - encompassing 18 million students and alumni worldwide. Recognizing the growing trend of work and study nomads, we see our collaboration with Selina as a pioneering opportunity to adapt to these evolving dynamics. This new relationship is not only a strategic investment for us, but also serves as a hedge against the shifting educational landscape in face of the growing trend of digital nomads in the world of work and education. Selina’s properties, many of which already exude the vibrant atmosphere of university campuses, are extremely relevant and embody the future of lifelong learning. We are excited to utilize our expertise to guide Selina's venture into the fast-growing education and student infrastructure sector, creating a unique ecosystem for modern learners. Our vision is to push the boundaries of conventional education by delivering accessible learning opportunities across the globe, intertwining travel, education, and the evolving demands of the modern workforce. We foresee this opportunity broadening the reach of education and revolutionizing the way people learn, work, and travel."
Beyond the notable investment, Selina’s strategic alliance with GUS will help Selina connect with another expansive, dynamic community. The collaboration between the parties is expected to help broaden and diversify the customer bases for each company. It is envisioned that Selina will become an important touchpoint for the GUS community, providing a comfortable and engaging environment for learning, work, and travel. This affiliation also opens the door for GUS to implement educational programs, accommodate students, and facilitate global study initiatives leveraging Selina's extensive network of properties.
Q1 2023 Update
Rafael Museri, Co-Founder and Chief Executive Officer, shared: “Selina's first quarter performance is marked by continued operational momentum, with significant year-over-year growth in occupancy rates and considerable advancements in key financial metrics. As we progress through 2023, Selina continues to focus on three strategic imperatives: enhancing cash flow, making progress on our path to profitability, and building our brand. Our approach includes a focused effort to reduce costs at both the corporate and unit levels, bolster operational efficiency, and accelerate achieving our financial goals. In tandem, we are committed to continuing to work on lease and loan renegotiations and the restructuring of liabilities. These strategic moves are anticipated to help improve our cash liquidity and strengthen Selina's financial position.”
Selina also continues to demonstrate its commitment to a multi-faceted optimization strategy focused on streamlining operations, reducing expenses, and improving unit economics. Selina has enacted a series of initiatives in pursuit of these objectives, including workforce and labor optimization initiatives and steps to reduce its leasehold and other liabilities. In parallel, Selina has been enhancing its food and beverage offerings, with the goal of improving the guest experience and enhancing profitability of existing venues.
Museri concluded by saying, "We are taking bold and decisive steps to position Selina for long-term success. Our commitment to our unique hospitality model remains strong. We acknowledge the challenges ahead and are committed to addressing them directly. We look forward to sharing more updates as we make progress on our transformation journey."
Q1’23 Highlights
Q1’23 Financial Summary
Quarter Ended
($ in millions, except properties and bedspaces data)
March 31,
2023
2022
Percent Change
Revenue
$54.2
$41.2
31.6%
Net Loss
($30.3)
($38.3)
(20.9%)
Adjusted EBITDA1
$0.4
$1.4
(71.4%)
Net Cash Used in Operating Activities
($0.7)
($5.3)
86.8%
Free Cash Flow Before Debt Service1
($12.6)
($14.3)
11.9%
Occupancy Rate
56.9%
45.2%
Properties, End of Period
118
103
14.6%
Bedspaces, end of Period
29,600
24,159
20.5%
Total Annualized Revenue per Bedspace
$7,056
$6,825
3.4%
___________________________1 Adjusted EBITDA and Free Cash Flow Before Debt Service are non-IFRS measures. Please see Non-IFRS Financial Measures section for reconciliation.
Operational Optimization
New Hotel Openings
Cash and Cash Flow Highlights
Liability Management
On June 23, 2023 the Company, certain subsidiaries of the Company and YAM at Selina Ops, L.P. (“YAM”) entered into (i) an amendment agreement that amends and supplements the joint venture arrangements among the parties pertaining to the development of the Company’s business in Panama, Costa Rica and Nicaragua, and (ii) an equity subscription agreement in order to (among other things) equitize approximately $9.5 million owed to YAM under those joint venture arrangements and provide for the buy-out of YAM’s interest in the joint venture. Once fully completed, Selina's “current loan payables” will be reduced by $10.1 million against the amount shown on its balance sheet as of March 31, 2023. Those agreements are described in more detail as part of a separate Report on Form 6-K filed today with the Securities and Exchange Commission.
2023 Outlook
Conference Call Details
A conference call to discuss Selina’s fundraising transaction, financial results for the quarter ended March 31, 2023 as well as a general business update, is scheduled for June 29, 2023:
About Selina Hospitality PLC.
Selina (NASDAQ: SLNA) is one of the world’s largest hospitality brands built to address the needs of millennial and Gen Z travelers, blending beautifully designed accommodation with coworking, recreation, wellness, and local experiences. Founded in 2014 and custom-built for today’s nomadic traveler, Selina provides guests with a global infrastructure to seamlessly travel and work abroad. Each Selina property is designed in partnership with local artists, creators, and tastemakers, breathing new life into existing buildings in interesting locations in 24 countries on six continents – from urban cities to remote beaches and jungles. To learn more, visit Selina.com or follow Selina on Twitter, Instagram, Facebook, Linkedin or YouTube.
About Global University Systems
Global University Systems (GUS) is a powerhouse in the global education sector, boasting a diversified portfolio of institutions across 12 countries, including the UK, Germany, Canada, Ireland, India, Israel, and Singapore. Dedicated to providing quality education, fostering innovation, and promoting international collaboration, GUS offers an array of flexible study options that accommodate the unique personal and professional commitments of its students. These options include online and blended learning through the FutureLearn platform, Europe’s largest online education platform with a community of over 18 million students and alumni worldwide. GUS itself is home to a vibrant and diverse community of over 100,000 active degree students from 150 nationalities on average per year. Through its various educational initiatives, GUS impacts millions of lives each year, and with its extensive networks, the potential reach is even greater. Their strategic investment in Selina underscores GUS's commitment to broadening its influence, fostering environments that seamlessly blend education and travel, and enriching the lives of a globally dispersed community of learners and travelers. To learn more, visit GlobalUniversitySystems.com.
SELINA HOSPITALITY PLC AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. DOLLARS IN THOUSANDS
At March 31,
At December 31, 2022
ASSETS
2023 (unaudited)
Current assets
Cash
23,209
47,689
Trade and other receivables, net
11,043
10,543
Inventory
2,437
2,286
Assets held for sale
2,500
2,500
Other assets
19,604
16,681
Total current assets
58,793
79,699
Non-currents assets
Property, equipment and furniture, net
112,809
111,330
Right of use assets
414,805
420,800
Intangible assets, net
6,790
6,424
Goodwill
543
548
Trade and other receivables, net
1,681
1,671
Investment in associates and joint ventures
3,398
3,336
Non-current financial assets
3,150
3,149
Security deposits
10,858
10,910
Other assets
370
424
Total non-current assets
554,404
558,592
Total assets
613,197
638,291
LIABILITIES AND EQUITY
Current liabilities
Trade payables and other liabilities
(84,417
)
(81,526
)
Loans payable
(36,408
)
(37,678
)
Convertible notes
(7,859
)
(7,914
)
Lease liabilities
(58,882
)
(59,115
)
Derivative financial liabilities
(1,216
)
(1,216
)
Warrants
(1,852
)
(1,481
)
Total current liabilities
(190,634
)
(188,930
)
Non-currents liabilities
Loans payable, net of current portion
(101,086
)
(97,996
)
Convertible notes, net of current portion
(42,706
)
(39,182
)
Lease liabilities, net of current portion
(467,062
)
(469,745
)
Deferred tax liability
(325
)
(329
)
Employee payables
(7,302
)
(6,852
)
Total non-current liabilities
(618,481
)
(614,104
)
Total liabilities
(809,115
)
(803,034
)
Equity
Common stock
(489
)
(488
)
Additional paid-in capital
(564,390
)
(563,210
)
Currency translation adjustment
3,226
1,452
Other reserves
799
552
Accumulated deficit
755,408
725,248
Total equity
194,554
163,554
Non-controlling interest
1,364
1,189
Total liabilities and equity
(613,197
)
(638,291
)
SELINA HOSPITALITY PLC AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
U.S. DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA (UNAUDITED)
Three Months Ended March 31
2023
2022
Revenue
Rooms
32,335
22,969
Food & beverage
15,047
12,288
Other, net
6,867
5,927
Total revenue
54,249
41,184
Costs and expenses
Cost of sales
(6,773
)
(4,267
)
Payroll and employee expenses
(23,409
)
(21,659
)
Insurance, utilities and other property maintenance costs
(11,724
)
(8,262
)
Legal, marketing, IT and other operating expenses
(13,890
)
(10,467
)
Depreciation and amortization
(8,982
)
(7,211
)
Total cost and expenses
(64,778
)
(51,866
)
Loss from operations activity before impairment and government grants
(10,529
)
(10,682
)
Impairment and write-off of non-current assets
—
(565
)
Government grants
—
1,241
Loss from operations activity
(10,529
)
(10,006
)
Finance income
2
27
Finance costs
(20,755
)
(28,848
)
Gain on net monetary position
1,252
944
Share of profit / (loss) in associates
—
14
Other non-operating income / (expense), net
3
(106
)
Loss before income taxes
(30,027
)
(37,975
)
Income tax expense
(306
)
(300
)
Net loss
(30,333
)
(38,275
)
Loss attributable to:
Equity holders of the parent
(30,159
)
(37,886
)
Non-controlling interest
(174
)
(389
)
Earnings per share
Basic and diluted, loss for the year attributable to equity holders of the parent
$
(0.31
)
$
(0.87
)
SELINA HOSPITALITY PLC AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. DOLLARS IN THOUSANDS (UNAUDITED)
Three Months Ended March 31
2023
2022
Cash flow from operating activities:
Loss for the year
(30,333
)
(38,275
)
Adjustments to reconcile net loss to operating cash flows:
Depreciation and amortization expense
8,982
7,211
Share-based compensation expense
521
2,234
Share of loss in associates
—
(14
)
Impairment and write off of non-current assets
—
565
Gain on net monetary position
(1,252
)
(944
)
Finance costs
20,755
28,847
Finance income
(2
)
(27
)
Income tax expense charged
306
300
Changes in working capital
372
(5,202
)
Net cash used in operating activities
(651
)
(5,305
)
Cash flow from investing activities:
Investments in financial assets
—
—
Purchases of property, equipment and furniture
(4,053
)
(8,056
)
Security deposits (paid) / returned
51
(172
)
Purchases of intangible assets
(540
)
(452
)
Proceeds from sales of property, equipment and furniture
—
—
Acquisition of business, net of cash acquired
—
—
Net cash used in investing activities
(4,542
)
(8,680
)
Cash flow from financing activities:
Proceeds from loans
2,698
23,184
Convertible note proceeds
—
—
Repayment of loans
(2,514
)
(2,060
)
Interest paid
(2,869
)
(2,549
)
Repayment of lease liabilities
(13,775
)
(12,051
)
Exercises of share options
—
—
Costs of equity raise
(200
)
—
Capital contributions
—
—
Net cash provided by financing activities
(16,660
)
6,524
Effect of changes in exchange rates on cash & cash equivalents
(2,627
)
—
Change in cash and cash equivalents during the period
(24,480
)
(7,461
)
Cash and cash equivalents at start of period
47,689
21,943
Cash and cash equivalents at end of period
23,209
14,482
Segment Reporting for the quarter ended March 31, 2023 (unaudited)
(In thousands of US$)
Mexico
South America
North America
Central America
Europe & Africa
Israel
APAC
Operative Locations
Content Brands
Adjustments
Total Consolidated
Rooms
Revenue
4,740
8,240
3,811
6,400
3,793
3,780
1,973
32,737
—
(402
)
32,335
Gross Operating Profit / (Loss)
2,053
3,728
1,344
3,009
404
207
912
11,657
—
(163
)
11,494
Food & Beverage
Revenue
3,350
3,563
834
3,955
1,645
1,579
581
15,507
—
(460
)
15,047
Gross Operating Profit / (Loss)
(319
)
82
(337
)
350
(427
)
(246
)
(5
)
(903
)
—
(67
)
(969
)
Other
Revenue
866
957
166
1,916
366
311
290
4,872
2,746
(751
)
6,867
Gross Operating Profit / (Loss)
531
365
148
672
178
207
197
2,299
(310
)
(129
)
1,859
All Selina products
Revenue
8,956
12,760
4,811
12,271
5,804
5,671
2,844
53,115
2,746
(1,612
)
54,249
Gross Operating Profit / (Loss)
2,265
4,176
1,155
4,031
155
167
1,104
13,053
(310
)
(359
)
12,384
Unit Level EBITDAR
1,988
3,782
650
3,953
(31
)
(158
)
1,122
11,305
(310
)
(359
)
10,637
Rent
(1,838
)
(2,628
)
(2,176
)
(1,270
)
(2,507
)
(1,376
)
(458
)
(12,253
)
—
—
(12,253
)
Unit-Level Operating Profit / (Loss)
150
1,153
(1,526
)
2,683
(2,538
)
(1,533
)
664
(947
)
(310
)
(359
)
(1,616
)
Rent add-back
12,253
Pre-opening Expenses
(533
)
Corporate Overhead
(9,752
)
Non-Cash compensation expense
(521
)
Non-recurring public company readiness cost
(1,375
)
Depreciation and amortization
(8,982
)
Finance income / (expense), net
(20,753
)
Non operational income
1,252
Income Tax
(306
)
Net Operating Income/(Loss)
(30,333
)
Segment Reporting for the quarter ended March 31, 2022 (unaudited) - Re-casted
(In thousands of US$)
Mexico
South America
North America
Central America
Europe & Africa
Israel
APAC
Operative Locations
Content Brands
Adjustments
Total Consolidated
Rooms
Revenue
4,939
6,081
2,500
5,322
1,843
1,992
162
22,838
—
130
22,969
Gross Operating Profit / (Loss)
2,808
2,128
603
2,287
57
210
(123
)
7,970
—
—
7,970
Food & Beverage
Revenue
4,281
2,052
1,080
3,564
746
655
16
12,394
—
(106
)
12,288
Gross Operating Profit / (Loss)
365
(187
)
(545
)
124
(258
)
(359
)
(41
)
(900
)
—
—
(900
)
Other
Revenue
474
812
115
1,608
247
201
3
3,460
1,160
1,307
5,927
Gross Operating Profit / (Loss)
239
463
114
501
203
17
3
1,541
569
765
2,875
All Selina products
Revenue
9,694
8,944
3,694
10,495
2,837
2,848
180
38,692
1,160
1,332
41,184
Gross Operating Profit / (Loss)
3,412
2,405
172
2,913
3
(132
)
(162
)
8,611
569
765
9,945
Unit Level EBITDAR
3,302
2,101
(188
)
2,798
(61
)
(209
)
(175
)
7,569
569
765
8,903
Rent
(1,583
)
(2,414
)
(1,188
)
(993
)
(1,794
)
(767
)
—
(8,739
)
—
—
(8,739
)
Unit-Level Operating Profit / (Loss)
1,719
(312
)
(1,377
)
1,805
(1,855
)
(976
)
(175
)
(1,170
)
569
765
163
Rent add-back
8,739
Pre-opening Expenses
(408
)
Corporate Overhead
(8,225
)
Non-Cash compensation expense
(3,125
)
Non-recurring public company readiness cost
(616
)
Depreciation and amortization
(7,211
)
Impairment and write-off of non-current assets
(565
)
Government grants
1,241
Finance income / (expense), net
(28,821
)
Non operational income
853
Income Tax
(300
)
Net Operating Income/(Loss)
(38,275
)
KEY METRICS AND NON-IFRS FINANCIAL MEASURES
Management uses a number of operating and financial metrics, including the following key business metrics, to evaluate Selina’s business, measure Selina’s performance, identify trends affecting Selina’s business, formulate financial projections and business plans, and make strategic decisions. Management regularly reviews and may adjust Selina’s processes for calculating Selina’s internal metrics to improve their accuracy. This release includes Adjusted EBITDA and Free Cash Flow Before Debt Service, which are not prepared in accordance with the international financing reporting standards issued by IFRS. Management believes that these non-IFRS financial measures provide useful information to investors about our business and financial performance, but there are limitations related to the use of these non-IFRS financial measures and they may not be directly comparable to similar titled measures of other companies. These non-IFRS financial measures should be considered in addition to, and not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS and should not be considered as an alternative to any measures derived in accordance with IFRS.
Key Metrics
The table below sets forth our key business metrics for the periods presented:
Three Months Ended March 31
Metric
2023
2022
Opened properties (at period end)
118
103
Open bedspaces (at period end)
29,600
24,159
Open beds (at period end)
20,217
18,661
Average daily open beds
19,435
16,347
Occupancy rate
56.9
%
45.2
%
Total daily revenue per occupied bed (TRevPOB)
$
51.8
$
53.3
Total daily revenue per occupied bedspace (TRevPOBs)
$
34.3
$
41.4
Total revenue per bedspace
$
1,740
$
1,683
Non-IFRS Financial Measures
EBITDA, Adjusted EBITDA and Free Cash Flow before Debt Service
Three Months Ended March 31
(In millions of US$)
2023
2022
IFRS Net loss
$
(30.3
)
$
(38.3
)
Add (deduct):
Income taxes
$
0.3
$
0.3
Finance income / (expense), net
20.8
28.8
Share listing expense
—
—
Depreciation and amortization
9.0
7.2
EBITDA
$
(0.2
)
$
(2.0
)
Non-operational income, net
(1.3
)
(0.9
)
Impairments
—
0.6
Non-Cash compensation expense
0.5
3.1
Non-recurring public company readiness costs
1.4
0.6
Provision for tax risks (non-income tax related)
—
—
Adjusted EBITDA
$
0.4
$
1.4
Three Months Ended March 31,
(In millions of US$)
2023
2022
Net cash used in operating activities
$
(0.7
)
$
(5.3
)
Add (deduct):
Repayment on lease liabilities
$
(13.8
)
$
(12.1
)
Net cash used in investing activities
(4.5
)
(8.7
)
Non-recurring SPAC transaction related payments
6.0
0.5
Proceeds from partner loans
0.4
11.3
Free Cash Flow before Debt Service
$
(12.6
)
$
(14.3
)
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events, and include terms such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential,” or “continue,” or the negatives of these terms or variations of them or similar terminology. In particular, statements in this press release regarding our beliefs regarding our goals for our performance and financial results for the fiscal year ended December 31 2023, including revenue growth, achieving and sustaining positive adjusted EBITDA and operating cash flow, the efficiency of our business model, our expansion plans, our ability to renegotiate lease terms, our path to profitability, and our ability to obtain additional funding, restructure liabilities and/or sell assets. Such forward-looking statements are subject to risks, uncertainties (some of which are beyond our control), and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while we consider reasonable, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, without limitation: potential negative impacts on our financial results as a result of changes in travel, hospitality, and real estate markets, including the possibility that travel demand and pricing do not recover to the extent anticipated, particularly in the current geopolitical and macroeconomic environment; volatility in the capital markets; our ability to execute on our plans to increase occupancy and margins; the potential inability to meet our obligations under our commercial arrangements and debt instruments; delays in or cancellations of our efforts to develop, redevelop, convert or renovate the properties that we own or lease; challenges to the legal rights to use certain of our leased hotels; risks associates with operating a significant portion of our business outside of the United States; risks that information technology system failures, delays in the operation of our information technology systems, or system enhancement failures could reduce our revenues; changes in applicable laws or regulations, including legal, tax or regulatory developments, and the impact of any litigation or other legal or regulatory proceedings; possible delays in ESG and sustainability initiatives; the possibility that we may be adversely affected by other economic, business and/or competitive factors, including risks related to the impact of a world health crisis, such as the ongoing COVID-19 pandemic,; and other risks and uncertainties described under the heading “Risk Factors” contained in the Annual Report on Form 20-F for the fiscal year ended December 31, 2022. In addition, there may be additional risks that Selina does not presently know, or that Selina currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Except as may be required by law, we do not undertake any duty to update these forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230627641772/en/
Media: press@selina.com Investor: investors@selina.com
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