The chain of hospitality complexes Selina, which is expected to become a public company on the New York Stock Exchange by the end of this quarter, recently published a detailed report ahead of the meeting of shareholders of the SPAC company into which it is merging. Selina announced about eight months ago a merger with BOA Acquisition Corp, in a deal that reflects a value of 1.2 billion dollars after the money for Selina, or 942 million dollars after neutralizing the cash (Enterprise Value).
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The deal was supposed to close by the end of the first half of the year, but the completion date was postponed to the third quarter. In the report, Selena published her full financial data from 2021, a year in which her net loss amounted to $184 million, compared to a loss of $138 million in 2020.
The bottom line was affected by an amount of approximately $103 million in financing costs, of which $40 million was interest on the debt. At the end of 2021, Selena had a mostly long-term debt of $268 million, due to loans and convertible bonds. The operating loss in 2021 was $81.2 million, compared to an operating loss of $84.6 million in 2020.
During the original report on the SPAC merger last December, Selina published a forecast for the coming years, and she repeats it in the latest report as well. Selena expects to end 2022 with $234 million in revenue, more than double the $92.7 million recorded in 2021. Revenues will grow to $506 million in 2023 and $823 million in 2024. The EBITDA forecast (earnings excluding interest, tax, depreciation and amortization) speaks of a negative EBITDA of $37 million this year, will become positive at $38 million in 2023 and will increase to $120 million in 2024.
The most profitable region – Central America
The 2021 figures indicate that $51.3 million of the revenue came from room rentals, $31.4 million from food and beverage sales and the rest is other revenue. At the expense level, 11.3 million dollars were recorded as expenses related to the sale of food and beverages, 57.2 million dollars for wages to employees, 31.5 million dollars – insurance and maintenance, 33.7 million dollars – legal expenses, marketing and computing, and another 31.2 million dollars in various deductions. In the same year, Selena received government grants in several countries (due to the corona epidemic) in the amount of 2.1 million dollars, compared to 1.4 million dollars in 2020.
Data on a geographic basis show that a significant part of Selena’s income comes from Central America ($25.3 million), and from Mexico and Guatemala ($24.4 million). At the unit level, only the Central America region was profitable in 2021.
Selina was founded by Rafi Mosari and Daniel Rudavsky and operates a chain of hospitality complexes that operates in more than 20 countries. Mosari serves as the company’s CEO and Rodovsky is Chief Growth Officer and director. Adi Sofer Thani, CEO of Facebook Israel, is nominated to join the company’s board of directors. At the end of 2021, Selina employed 1,673 workers, of which 1,306 were paid hourly.