SELINA

Rafael Museri and Daniel Rudasevski, two Israeli entrepreneurs, traveled extensively through Central and South America and noticed a gap: budget accommodations were ugly and basic, while nice hotels were unaffordable for young travelers. There was nothing in between.

In 2014, they founded Selina in Panama City. They leased or bought run-down properties, gutted them, and redesigned them with a distinctive aesthetic: tropical colors, surf boards on walls, hammocks, coworking spaces, and communal kitchens.

Each location had a unique design that reflected local culture.

The model targeted digital nomads and young professionals who wanted beautiful spaces at budget prices, with community and experiences baked in.

Selina leases properties on long-term contracts, renovates them, and sells accommodation at various price points within the same property: dorm beds, private rooms, and suites. Revenue also comes from coworking memberships, food and beverage, wellness experiences (yoga, surf lessons), and events.

The "hotel within a hostel" concept means one property serves backpackers (dorm beds), digital nomads (coworking + private room), and couples (suite), maximizing revenue per property.

Beautifully designed accommodations ranging from $15 dorm beds to $200 suites. CoLiving subscriptions for digital nomads.

Coworking spaces in every location. Experiential programming (surf, yoga, cooking classes, live music).

The Selina app for booking and community.

Rapid expansion across Latin America, then Europe, and planned expansion into Asia. Selina opened 100+ locations across 24 countries at breakneck speed.

Each location was designed as an Instagram destination, generating organic social media marketing.

The subscription model (CoLive) let digital nomads pay a monthly fee to live and work at any Selina location, appealing to the remote work revolution accelerated by COVID.

Growing too fast with too much debt. Each new property required significant capital for renovation.

Long-term lease obligations created fixed costs that crushed profitability during low seasons.

The SPAC IPO in 2022 didn't raise as much capital as expected. The stock price collapsed, falling over 95% from its SPAC price.

The company has faced NASDAQ delisting warnings.

Occupancy rates have been inconsistent. While some locations are packed, others struggle to fill beds.

The operational complexity of managing 100+ unique properties across 24 countries is enormous.

Selina raised over $350 million from investors including IDB Group, Colony Capital, and Access Industries. The company went public via SPAC merger in 2022.