Selina Hospitality PLC ("Selina" or the “Company”), (NASDAQ:
SLNA), the fast-growing lifestyle and experiential hospitality
company targeting millennial and Gen Z travelers, today announced
preliminary unaudited revenue results for the fourth quarter and
full-year ended December 31, 2022.
Selina's Co-Founder and Chief Executive Officer, Rafael Museri,
said, “Selina is focused on three strategic priorities: driving
cash flow, executing on our path to profitability, and building our
brand. We will be relentless with exploring ways to reduce our
costs, become more efficient, and enhance our focus. Our
performance in the fourth quarter and full year is a testament to
our continual pursuit of delivering an exceptional guest experience
and building a loyal customer base. With our priorities in mind, we
plan to exercise more discipline and near-term moderation in our
new hotel growth, while maintaining our focus on targeted expansion
in existing markets and driving higher occupancy at our current
properties. We believe that this approach will help us achieve our
top strategic objectives.”
PRELIMINARY FOURTH QUARTER 2022 REVENUE AND KEY PERFORMANCE
INDICATORS
- Total revenue in the range of $49.5 million to $52.5 million,
an increase in the range of 60% to 70% compared to fourth quarter
2021, driven primarily by an increase in bedspaces from new opened
locations, higher occupancy rates, and higher total revenue per
bedspace
- On a same-store basis, total revenue increased by 23% for
properties operated in both period fourth quarter 2021 and
2022
- Open bedspaces (at period end) was 29,600
- Open beds (at period end) was 19,975
- Average daily open beds during fourth quarter 2022 was
18,552
- Occupancy rate grew to 49%, up from 39% in the fourth quarter
of 2021
- Daily Total Revenue Per Occupied Bed (TRevPOB) increased to
$59, up 28% compared to fourth quarter 2021
- Daily Total Revenue Per Occupied Bedspace (TRevPOBs) increased
to $38, up 4% compared to fourth quarter 2021
- Total annualized revenue per bedspace increased to $6,983, up
31% compared to fourth quarter 2021
PRELIMINARY FULL-YEAR 2022 REVENUE AND KEY PERFORMANCE
INDICATORS
- Total revenue in the range of $182.5 million to $185.5 million,
an increase in the range of 97% to 100% compared to FY 2021, driven
primarily by an increase in bedspaces from new opened locations,
higher occupancy rates, and higher total revenue per bedspace
- On a same-store basis, total revenue increased by 57% for
properties operated in both FY 2021 and FY 2022
- Open bedspaces (at period end) was 29,600
- Open beds (at period end) was 19,975
- Average daily open beds during full year 2022 was 19,018
- Occupancy rate grew to 48%, up from 33% compared to FY
2021
- TRevPOB increased to $53, up 16% compared to FY 2021
- TRevPOBs increased to $38, up 9% compared to FY 2021
- Total annual revenue per bedspace increased to $6,612, up 57%
compared to FY 2021
2022 CORPORATE HIGHLIGHTS
- Completed its business combination with BOA Acquisition Corp.
and listing on the NASDAQ market on October 27, 2022
- Opened 18 properties with 3,692 bedspaces in a mix of new and
existing markets, including 2 properties in the fourth quarter,
with a total of 323 bedspaces, in Tel Aviv, Israel and Magnetic
Island, Australia
- Added approximately 2,500 bedspaces to 22 existing
properties
- As of December 31, 2022, the Company had 118 open locations in
24 countries across six continents with approximately 29,600 open
bedspaces, a 27% increase in bedspaces from the prior year
period
2023 EXPANSION STRATEGY
Selina's expansion strategy for 2023 will focus on three key
principles: opening locations that generally ramp faster in
occupancy and deliver more attractive financial performance,
expanding existing locations with remodels and incremental leased
spaces, and leveraging its brand to receive flexible lease terms
with longer grace periods while shifting to variable rent for some
new locations. As such, the Company plans to open between 10 and 15
hotels in 2023. Selina has signed agreements with third-party real
estate partners who have committed $300 million of capital to
finance the acquisition and initial conversion of future Selina
properties, including the planned 2023 openings. To help the
Company achieve economies of scale, the Company will focus on
expanding in the 24 countries where it already has a presence,
including multi-hotel markets like Australia, Brazil, Costa Rica,
Greece, Israel, Mexico, Morocco, Panama, Peru, and United
States.
On January 27, 2023, Selina disclosed in its most recent
investor presentation that its goals for 2023 include annual
revenue growth of 30 to 40% and achieving positive Adjusted EBITDA
and operating cash flow.
While Selina will continue to expand its footprint in 2023, the
current expansion plan demonstrates that the company is both
focused on cash flow and remains deeply committed to delivering an
incredible experience to hotel guests and the local communities at
our unique hotels throughout the world, which in turn drives
revenue. The current expansion plan also shows that Selina is
intensely focused on its cost structure and cash flow in order to
position the company for achieving and sustaining positive Adjusted
EBITDA and Operating Cash Flow going forward.
KEY METRICS
Management uses a number of operating and financial metrics,
including the following key business metrics, to evaluate Selina’s
business, measure Selina’s performance, identify trends affecting
Selina’s business, formulate financial projections and business
plans, and make strategic decisions. Management regularly reviews
and may adjust Selina’s processes for calculating Selina’s internal
metrics to improve their accuracy.
- We define our occupancy rate as the number of beds sold
divided by the total number of open beds, over any given
period.
- Open beds reflects the total number of beds in inventory
at opened properties at the end of any given period. As our
properties have the ability to convert rooms into different bed
configurations, the total number of open beds may fluctuate at any
given location over any given period.
- Average daily open beds is calculated as the total
number of beds in inventory over any given period of time on a
daily basis. This metric reflects Selina’s daily accommodations
capacity and is used in the calculation of occupancy rate.
- We define TRevPOB as total revenue, excluding Remote
Year revenue, for any given property, for any given period, divided
by the number of beds sold in that same period. This measure
removes the impact of occupancy, as it reflects total revenue on a
per occupied bed basis. Changes in this metric reflect the
variability in our business arising from our ability to change room
and bed configurations based on demand.
- We define TRevPOBs as total revenue, excluding Remote
Year revenue, for any given property, for any given period, divided
by the number of bedspaces sold in that same period. The number of
bedspaces sold is determined by multiplying the occupancy rate for
any given period by the average of the total number of open
bedspaces at the beginning and end of that period. This measure
removes the impact of occupancy, as it reflects total revenue on a
per occupied bedspace basis.
- Total revenue per bedspace is calculated as total
revenue, excluding Remote Year revenue, for any given property, for
any given period, divided by the average of the total number of
open bedspaces at the beginning and end of that period. Management
views total revenue per bedspace as a useful measure of comparing
performance between locations or cohorts over time, as well as
providing an indication of future revenue potential as we continue
to grow total bedspaces.
- The number of open bedspaces reflects the total number
of bedspaces at opened properties at the end of any given period.
Bedspaces is a metric we use to measure the potential sleeping
capacity of a given property. It is a static capacity measure, and
not one reflecting actual capacity in a given period. Every 5.5m2
of accommodation (sleeping room) area in a property equals one
bedspace. Our rooms are designed to be convertible into different
modalities and with distinct bed configurations. We offer
“Standard” accommodations with one double bed, “Twins”
accommodations with two single beds, “Family” accommodations with
space designed to accommodate up to four people, and “Community”
accommodations with space designed to accommodate up to eight
people. At the discretion of property managers, the double bed in a
“Standard” accommodation can be replaced with a bunk bed for eight
guests, for example. Accordingly, management views the number of
bedspaces, instead of the number of physical beds, as the static
measure of property capacity because it avoids potentially
misleading fluctuations that would arise from the changing room
configurations in any given property.
- EBITDA is defined as IFRS net profit (loss) excluding
impact of income taxes, net interest expense (finance income and
costs), and depreciation and amortization. Adjusted EBITDA
is defined as EBITDA, excluding (i) non-operating income (expense),
such as gain on net monetary position, share of profit/(loss) in
associates, other non-operating income / (expense), and income from
COVID-related concessions, (ii) impairment losses, (iii) non-cash
stock-based compensation expense, (iv) non-recurring public company
readiness costs, and (v) provision for tax risks that are
non-income tax related
- Operating Cash Flow is defined as Net Cash used in
Operating Activities in the IFRS Consolidated Statement of Cash
Flows
PRELIMINARY FINANCIAL RESULTS
The preliminary financial results described herein are
unaudited, based upon estimates, and subject to adjustment based on
the completion of the Company’s year-end financial closing
procedures. The preliminary financial results have been prepared by
management solely on the basis of currently available information.
The estimates do not represent, and are not a substitute for, a
comprehensive statement of the Company’s financial results for the
periods presented, and the Company’s actual results may differ from
the estimates as a result of final adjustments, the completion of
financial closing procedures, including the annual year-end
independent audit review, and other developments after the date of
this release. The Company expects to report its full fourth quarter
and fiscal year 2022 financial results prior to April 30, 2023.
About Selina Hospitality PLC
Selina (NASDAQ: SLNA) is one of the world's fast-growing
hospitality companies built to address the needs of millennial and
Gen Z travelers, blending beautifully designed accommodation with
coworking, recreation, wellness, and local experiences. Founded in
2014 and custom-built for today's nomadic traveler, Selina provides
guests with a global infrastructure to seamlessly travel and work
abroad. Each Selina property is designed in partnership with local
artists, creators, and tastemakers, breathing new life into
existing buildings in 24 countries and six continents – from urban
cities to remote beaches and jungles. To learn more, visit
Selina.com or follow Selina on Twitter, Instagram, Facebook or
YouTube.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events, and include terms
such as “may,” “should,” “expect,” “intend,” “will,” “estimate,”
“anticipate,” “believe,” “predict,” “potential,” or “continue,” or
the negatives of these terms or variations of them or similar
terminology. In particular, statements in this press release
regarding our beliefs regarding our goals in 2023 for annual
revenue growth of 30 to 40%, achieving and sustaining positive
adjusted EBITDA and operating cash flow, the efficiency of our
business model, our expansion plans and our continued ability to
scale, our ability to leverage our scaled infrastructure into
product offerings, and our path to profitability. Such
forward-looking statements are subject to risks, uncertainties
(some of which are beyond our control), and other factors which
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. These
forward-looking statements are based upon estimates and assumptions
that, while we consider reasonable, are inherently uncertain.
Factors that may cause actual results to differ materially from
current expectations include, without limitation: potential
negative impacts on our financial results as a result of changes in
travel, hospitality, and real estate markets, including the
possibility that travel demand and pricing do not recover to the
extent anticipated, particularly in the current geopolitical and
macroeconomic environment; the potential inability to meet our
obligations under our commercial arrangements and debt instruments;
delays in or cancellations of our efforts to develop, redevelop,
convert or renovate the properties that we own or lease; challenges
to the legal rights to use certain of our leased hotels; risks
associates with operating a significant portion of our business
outside of the United States; risks that information technology
system failures, delays in the operation of our information
technology systems, or system enhancement failures could reduce our
revenues; changes in applicable laws or regulations, including
legal, tax or regulatory developments, and the impact of any
litigation or other legal or regulatory proceedings; possible
delays in sustainability initiatives; the possibility that we may
be adversely affected by other economic, business and/or
competitive factors, including risks related to the impact of the
ongoing COVID-19 pandemic, including the Omicron variant or future
variants and further governmental and other restrictions (including
travel restrictions) resulting therefrom; and other risks and
uncertainties described under the heading “Risk Factors” contained
in the Registration Statement on Form F-1 that we filed on November
30, 2022 and any subsequent amendments thereto. In addition, there
may be additional risks that Selina does not presently know, or
that Selina currently believes are immaterial, that could also
cause actual results to differ from those contained in the
forward-looking statements. Nothing in this presentation should be
regarded as a representation by any person that the forward-looking
statements set forth herein will be achieved or that any of the
contemplated results of such forward-looking statements will be
achieved. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Except
as may be required by law, we do not undertake any duty to update
these forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230302005323/en/
Media: press@selina.com Investor: investors@selina.com
Selina Hospitality (NASDAQ:SLNA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Selina Hospitality (NASDAQ:SLNA)
Historical Stock Chart
From Jul 2023 to Jul 2024