The Selina Hotel in Cliftonville is now closed with “no expected reopening date” as yet.
The closure comes after Selina Hospitality, which owns the Selina hotel in Cliftonville, went into administration.
Andrew Johnson, Sam Ballinger and Ali Khaki of FTI Consulting LLP were appointed as Joint Administrators of Selina Hospitality PLC on 22 July.
Founded in 2014, Selina provides guests with places to stay, travel and work in over 100 properties across more than 20 countries. In October 2022, the Company listed on NASDAQ, and following the appointment of the Joint Administrators it is expected that the Company’s securities will be delisted.
Although Selina Hospitality subsidiaries remain under the control of the directors and local management, there is no funding from the main group to provide any financial support.
The Joint Administrators are exploring options, which may include a potential sale of all or parts of the business. Corporate management and stakeholders of subsidiaries are in discussions regarding potential funding sources.
The Selina Hotel in Eastern Esplanade opened with a soft launch at the end of 2022 and then an ‘official’ opening in May last year at the site of the former Smiths Court Hotel. The revamped venue offered rooms, a bar, coworking space, boutique, and a restaurant.
A notice at the property says: ” “Due to unforeseen circumstances beyond our control, this location was closed on August 14th with no expected opening date yet.
“It was not a decision we took lightly but we did so with everyone’s safety and comfort at the forefront of our mind.”
Insolvency
Andrew Johnson, a Senior Managing Director at FTI Consulting and one of the Joint Administrators, said: “Unfortunately, the Company was unable to reach its growth aspirations following the COVID-19 pandemic.
“The group subsequently struggled to raise sufficient capital to deliver a turnaround due in a large part to increased interest rates and weaker trading performance.
“The Joint Administrators are considering options for the Company on an accelerated basis and we will continue to support regional management where possible to minimise disruption to guests, employees and other stakeholders.
“However, as a result of the insolvency, Selina Hospitality PLC is unable to continue to provide financial support to the Company’s subsidiaries.”
Selina Hospitality was founded by Israeli businessmen Daniel Rudasevski and Rafael Museri as a co-working and traveling hospitality service, first in Central America, where the two were traveling at the time, and then the rest of the world.
However, yearly losses forced the company last year to lay off 350 employees worldwide and begin the selective exit of leases of underperforming locations with closures of properties in Mexico, the U.S., Greece, Austria and Costa Rica.
In 2022, Selina had a market valuation of $1.8 billion. By July 2024, Selina’s market value had reportedly fallen to $13.08 million.
