Millennial and Gen Z-targeted hotel brand Selina is employing rapid conversion techniques to quickly expand its global portfolio.
The US-based brand signed eight new properties comprising 3,204 bed spaces in Q2 2022. These were in Australia, USA, Greece, Mexico, Portugal, Panama and Israel, representing a 33% increase on the six signed in the first quarter of this year, and a 32.5% rise year-on-year.
Contemporary conversions
Selina’s swift strategic model is one reason why its global presence is proliferating. It identifies underperforming hotels through proprietary technology and then converts them in an average of around just 120 days, usually increasing the density of beds per location to boost profitability too.
The brand particularly targets what it describes as ‘old, tired hotels’, turning them into contemporary locations that it claims generate, on average, a 2.4 times increase in revenue compared to prior hotel operators. The destinations are developed specifically with Millennial and Gen Z travellers in mind, incorporating shared and co-working spaces.
Largest Millennial brand
Selina has spent the past few years building and scaling its platform, starting from 250 beds in two locations in 2014 to its current portfolio of 40,000 beds in 155 locations, inclusive of 55 pipeline properties. The firm believes this amount makes it the largest hospitality brand built to address the needs of Millennial and Gen-Z travellers.
The TOPHOTELPROJECTS database lists several of these upcoming destinations including the 100-room Selina Flores in Guatemala; the 50-key Selina Ushaia; and Selina Cali, due to open in Columbia in 2023.
Eyeing both urban and remote locations, Selina detailed it has around 6,000 further beds currently in advanced negotiations, for sites in the USA, the Caribbean, Spain, Germany, Greece and Thailand.
Mix shift
Selina also stated that its portfolio should mature rapidly and shift to more developed markets, predicting that its more developed sites will reach 31% of its full system by the end of 2022. This shift is also targeted at helping drive higher revenues through increased rates, occupancy and F&B revenue.
In Q2 2022 Selina opened eight new properties in Greece, Australia, Portugal, Panama, the United States, Morocco and Israel. This comprised Selina Paros, Selina Brisbane, Selina Evora, Selina Boquete, Selina Washington DC, Selina Agafay, Selina Desert Garden and Selina Metula.
Responsible scaling
Selina’s co-founder and CEO Rafael Museri said: “We are excited to continue Selina’s expansion across six continents, enabling us to further immerse our brand’s programming, events, recreation, restaurants and nightlife into the fabric of local communities with destinations that are authentic and relevant to locals and travellers alike.
“In doing so, we are able to create value for local real estate owners, jobs for local residents and dynamic, engaging travel experiences for our loyal network of adventure seekers, remote workers, and digital nomads. The breadth of our portfolio and customer base together with the improvements we’re making to our platform help to drive revenue during high and low travel seasons and give us confidence that we will continue to be able to scale responsibly and in a sustainable manner over the coming years.”
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