The archive · Consumer Apps · Financial decision · 2015–2025
Selina's hostel bet: $1.2B SPAC to insolvency and fire sale in two years
Digital-nomad hostel chain merged with a SPAC at $1.2B in 2022, declared insolvency in July 2024 and was sold out to Collective Hospitality five weeks later.
Selina Hospitality
What the business is
A youth-travel hospitality brand: experience-driven hostels with coworking spaces, events and community programming, aimed at digital nomads and millennial travelers.
Starting capital：Raised over $350M through its 2022 SPAC merger with BOA Acquisition Corp at a $1.2B valuation (per HFTP analysis)
How it started
Founded in 2015 by Israeli entrepreneurs Rafael Museri and Daniel Rudasevski, Selina grew into a network of experience-driven hostels and was headquartered in London. In October 2022 it completed a merger with SPAC BOA Acquisition Corp at a company valuation of $1.2 billion; its shares jumped 319.5% on the first day of trading on Nasdaq.
What happened
By 2022 Selina ran 163 hospitality properties in more than 20 countries, but growth ran ahead of profitability: occupancy sat around 47% in 2023, most properties were leased rather than owned, and expansion was partly funded with short-term debt. Negative EBITDA and cash shortages became chronic as interest rates rose and investor sentiment cooled.
How it ended up
In July 2024 Selina said it had no reasonable prospect of avoiding insolvency and was delisted from Nasdaq; on August 27, 2024, five weeks later, administrators concluded a sale of most of the business and its operating subsidiaries to Singapore's Collective Hospitality, covering about 100 hotels and including Remote Year, a travel company Selina had acquired.
Background
Selina was founded in 2015 by Rafael Museri and Daniel Rudasevski as a hospitality brand for young travelers and digital nomads — hostels with coworking spaces, yoga, events and a strong community pitch. In October 2022 it merged with SPAC BOA Acquisition Corp at a company valuation of $1.2 billion, and its shares jumped 319.5% on the first day of Nasdaq trading.
The company grew to 163 properties in more than 20 countries, but the model was expensive: most sites were leased or operated under partnership, expansion was partly financed with short-term debt, and occupancy ran around 47% in 2023. Negative EBITDA and cash shortages became chronic as interest rates climbed and investor appetite cooled.
In July 2024 Selina said it had no reasonable prospect of avoiding insolvency and was delisted from Nasdaq. Five weeks later, on August 27, 2024, administrators completed a sale of most of the business to Singapore's Collective Hospitality — about 100 hotels, plus Remote Year, the travel brand Selina had acquired. The brand's value had fallen by more than 99%, and its Israeli subsidiary later filed for liquidation.
What has to be true
- A SPAC at $1.2B funded growth, but leasing hundreds of properties multiplied fixed costs and debt without building owned assets.
- Hospitality unit economics — occupancy, pricing, local operations — don't bend to a Silicon Valley growth story.
- Short-term debt financing a long-term real-estate model becomes fatal when interest rates rise.
- 47% occupancy showed the community brand won attention, not enough paying guests.
What can be applied
Hospitality is not software: leased rooms, brand tech and a growth narrative don't replace occupancy and unit economics. SPAC cash at a $1.2B valuation just makes the collapse faster when rates rise.
Aftermath
As of September 2026 Selina no longer operates under its own brand. Collective Hospitality completed the acquisition in August 2024 and began turning properties around; about 29 former Selina sites reopened as 'Socialtel' in Central and South America from March 2025. Selina Operation Israel was left without directors or funding after the sale and filed for liquidation in the Tel Aviv District Court in March 2025, citing NIS 1.5 million in unpaid commitments and a NIS 32 million loan. Industry analyses estimate the brand lost more than 99% of its value, with investors recovering almost nothing.
Sources
- Selina Sold Out of Insolvency 5 Weeks After Collapse – Exclusive
- Hospitality chain Selina Israel files for liquidation
- Selina Hospitality completes SPAC merger, jumps 319%
- Selina Hotels: When the Digital Nomad Dream Met Financial Reality
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