When Sebastian Ebel became CEO of TUI Group in late 2022, the company needed a nearly $5 billion loan to survive the pandemic. But for two years straight, TUI has reported steadily increasing profits.
Selina Collapses in Liquidity Crisis, Seeks Buyers
22.07.2024 - 17:16 / skift.com / Sean Oneill / Alan Woinski
Selina Hospitality, a hotel and experiences brand focused on youth travelers, said Monday it “no longer has any reasonable prospects of avoiding an insolvency.”
The news, released in a regulatory filing, follows a severe liquidity crisis for the once-promising hotel, hostel, and co-working space operator.
Selina’s board said administrators will explore a potential sale of some or all of the group’s operating subsidiaries and assets, contingent on securing the necessary funding.
The board effectively ceded control of the company’s affairs, business, and property to the administrators at FTI Consulting.
While the parent company is insolvent, the day-to-day operations of its subsidiaries remain under the control of their respective directors and management teams.
This development represents a significant fall from grace for Selina, which had positioned itself as a pioneer in the “digital nomad” hospitality sector, blending hotel accommodations with co-working spaces in trendy locations worldwide. It had about 29,000 “bedspaces” at its hostels and hotels worldwide as of earlier this year.
It also represents a potential failed bet by Global University Systems (G.U.S), which had invested $50 million in the company in the past year to stabilize it. G.U.S. is a profitable private company, generating about $900 million a year.
The final straw was when the company couldn’t come up with about a half-million dollar interest payment to a unit of the Inter-American Development Bank.
Selina went public in a special purpose acquisition company, or SPAC, deal in October 2022. Its merger with a blank check company enabled it to go public, but it failed to deliver enough capital to help Selina fund its future operations.
“When stock market historians look back on the past few years and the whole SPAC craze, they definitely have to include Selina in the biggest failure list,” said Alan Woinski, founder and editor of Skift’s Daily Lodging Report.
Investors in the company that proposed merging with Selina sought redemptions for 96% of their money rather than taking shares in Selina. Since then, Selina has remained unprofitable and seen its capital reserves dwindle.
“It began trading on October 27, 2022, with a range of $9.75 to $49.49,” Woinski said. “By November 3, 2022, it was trading at $4.50. The rest is history for what is clearly the biggest disaster ever for a lodging-related company.”
The stock was down 25% Monday to $0.30. Expect Selina to be delisted from the Nasdaq Stock Exchange because of its inability to regain compliance with listing requirements.
The website maxtravelz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Top Autors
Popular Topics
travelandleisure.com
09.08.2024 / 18:46
Liquid Limits for Flying Will Likely Be in Place Until at Least 2040, TSA Says
If you’re an avid traveler (and even if not), you’ve probably heard the rumblings that sometime soon the 3.4 oz. TSA liquids rule is going to change. Currently, you’re not allowed to bring containers larger than 3.4 ounces (or 100 ml) of liquids, gels, or aerosols through security. Commonly referred to as the “3-1-1” rule, it traces its origins back to a failed plot in 2006 when terrorists in the U.K. tried to smuggle liquid explosives onto planes. The rules were originally intended to be temporary but nearly 20 years later remain in place.
thepointsguy.com
31.07.2024 / 19:50
Boeing names new CEO amid ongoing crisis
Boeing will appoint Robert "Kelly" Ortberg as its new CEO, the company said on Wednesday. The announcement comes months after current CEO Dave Calhoun announced plans to step down by year's end amid a shake-up at the company stemming from its ongoing manufacturing crisis. Ortberg begins Aug. 8.
skift.com
25.07.2024 / 23:42
American Airlines Seeks to Repair Travel Agency Ties After Direct Bookings Strategy
American Airlines CEO Robert Isom outlined numerous steps the airline is taking to “course correct” after abandoning a direct distribution strategy it embarked on in 2023.
breakingtravelnews.com
22.07.2024 / 19:05
LGBTQ+ travelers: High-spending adventurers seek inclusive experiences
The LGBTQ+ travel market is booming, with travelers in this segment demonstrating a significant impact on the tourism industry, according to a recent report by Arival. ‘The LGBTQ+ Experiences Traveler’ sheds light on who these travelers are, what they crave, and how experience providers can better cater to their needs.
skift.com
17.07.2024 / 16:00
Scandic Hotels Seeks Expansion in Northern Europe
Scandic Hotels Group reported results for the first-half of the year, and the operator of about 280 hotels is now targeting expansion through its Scandic Go brand and conversions of office buildings.
traveldailynews.com
16.07.2024 / 10:15
Crisis Management in aviation: Enhancing safety through proactive flight diversion and supervision services
Avan Merugumala, Operations Manager at Dubai-based Aviation Services Management (ASM), highlights the crucial role of comprehensive crisis management protocols in the aviation industry. In the high-stakes environment of commercial and private aviation, the ability to react swiftly and coordinate effectively during emergencies can indeed be a matter of life and death.
cntraveler.com
15.07.2024 / 21:21
TSA Liquid Limit: 11 Full-Size Liquids You Can Take Through Airport Security
For nearly two decades, travelers have become accustomed to packing miscellaneous liquids into their carry-on bags according to the TSA liquid limit.
travelpulse.com
12.07.2024 / 21:16
American Airlines Seeks Approval for Nonstop Flights Between San Antonio and Washington DC
In a significant move to enhance connectivity, American Airlines has applied to the U.S. Department of Transportation (DOT) to launch daily nonstop flights between San Antonio International Airport (SAT) and Washington Reagan National Airport (DCA). This development follows the 2024 FAA reauthorization bill, which allocated five new roundtrip flights to DCA.
insider.com
12.07.2024 / 15:11
Elite nightclubs are forcing the Hamptons into an identity crisis
Just two hours east of Manhattan, the Hamptons is an ultra-wealthy beach hideaway where millionaires and celebrities from Martha Steward to Beyoncé hide away from the big city bustle.
travelandleisure.com
16.05.2024 / 19:53
California State Parks Affected by Big Sur Highway 1 Collapse Set Reopening Dates
California’s famous Highway 1 will reopen on Friday, a month after a partial collapse and road slip out near Big Sur forced it to close.
travelpulse.com
07.05.2024 / 18:49
Dream Job Alert: Sandals Resorts Seeks Caribbean Cocktail Critic
Caribbean all-inclusive leader Sandals Resorts has concocted a one-of-a-kind gig for one lucky new hire who will get to work sampling and fine-tuning cocktails for its new Poolside Sippers menu. In the exclusive role of Caribbean Cocktail Critic, this person will be part of a stirring pilot program at the company’s newest Jamaican resort, Sandals Dunn’s River.