Selina is using quick conversions to swiftly expand capacity

by | 19 Aug 2022 | Portfolio

Pictured: The recently-opened Selina Union Market in Washington DC, USA.

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.”

Related Articles

Standard International choses Australia for new brand premiere

Standard International choses Australia for new brand premiere

The inaugural site, The StandardX, Melbourne, will open in the Victorian city in February 2024. Original inspiration This new concept takes The Standard brand back to its youthful roots, taking inspiration from its first hotel 25 years ago on Los Angeles’ Sunset...

Irish hospitality group sells majority stake to investor

Irish hospitality group sells majority stake to investor

The Dean Hotel Group is a dedicated hotel real estate, brand and management platform recently spun-off from Press-Up Hospitality Group. Founder Paddy McKillen Jr and the McKillen Company will retain a stake and remain involved in the business. Management continuation...

US investors join forces to develop US$2 billion of hospitality projects

US investors join forces to develop US$2 billion of hospitality projects

The new venture aims to leverage the expertise of JMA’s more than 35 years of experience in investment and development of unique properties throughout the United States and Mohari’s significant experience as an investor across the hospitality sector. Work culmination...

InterContinental initiates global brand evolution

InterContinental initiates global brand evolution

As part of IHG’s luxury and lifestyle portfolio, InterContinental’s transformative journey is driven by the line’s long held belief that travel can expand minds and connect cultures, enhanced by cutting-edge technology and innovative design. Holistic evolution The...

Red Sea Global launches own luxury hotel brand

Red Sea Global launches own luxury hotel brand

The launched line is called Shebara, and it will manage a spectacular overwater resort located on Sheybarah Island in Al Wajh Lagoon. Overwater orbs Shebara will open in summer 2024 and is the first resort to be owned and operated by RSG at The Red Sea destination. ...

Hyatt creates Wellbeing Collective line

Hyatt creates Wellbeing Collective line

At launch, the Wellbeing Collective boasts more than 30 hotels globally, with plans to expand in 2024. Collection across brands The Wellbeing Collective includes a collection of properties across Hyatt’s portfolio of brands that provide wellbeing offerings to all...