Selina closed New Local Partner, the Hagag Group, in Israel and Secured up to $150 Million in Commitments for Growth in the Country
LONDON, Oct. 7, 2021
LONDON, Oct. 7, 2021 /PRNewswire/ -- Selina, the fast-growing hospitality and experiential brand targeting millennial and Gen Z travelers, announced a new local partner in Israel, the Hagag Group, as the exclusive real estate partner for the brand in the region.
Selina has scaled for the past six years, bringing the brand to 116 open and secured properties across 20 countries, building a global community of destinations and experiences that enables a new generation to travel, work, and play seamlessly. Selina's asset-light business model includes partnering with strong local real estate partners that cover 90% of the cost to convert properties into vibrant, locally-inspired Selina-branded destinations quickly.
"Our affiliation with the Hagag Group will allow Selina to quickly grow our presence in Israel. We are thrilled that such an experienced local developer chose us as its hospitality partner," said Rafael Museri, CEO & Co-Founder of Selina. "Today, Selina has nine local partners in different regions worldwide, from Brazil to Mexico to the UK, Portugal and now, Israel. Our success comes from looking for strong, relevant partners like the Hagag Group that understand the potential of our target audience and will successfully help us deploy the brand in their geographies."
Selina anticipates securing 8,000 beds in Israel over the next three years and is targeting popular domestic and international travel destinations such as Jerusalem, Tel Aviv, Haifa, Negev, and Galilee. Today, the brand has four open properties in Neve Tzedek; Tel Aviv, Beit Oren in the Carmel Mountains, the recently opened at Maale Hahamisha Jerusalem Mountains, and a popular glamping hotel inside the Ramon crater.
Owned by Tzachi and Eido Hagag, the Hagag Group (TASE) a traded company in the Tel Aviv, Israel stock exchange, has committed $150 million to acquire, convert and finance properties to then lease them back to Selina to operate. The Hagag Group will invest an additional $30 million in converting properties that Selina will lease from third parties. Selina's conversion process generally takes between 90 to 120 days to complete. Local designers and craftsmen are brought to the property to give birth to a new Selina by upcycling up to 90% of the current property inventory.
"This long-term collaboration with Selina increases the diversity of the portfolio of the Hagag Group that enjoys financial stability and investment prospects in one of the fastest-growing markets with high returns in Israel," said Tazchi Hagag from the Hagag Group.
Today, Selina has approximately $350 million in committed capital available to it, from local development partners in nine global regions, to help fund the brand's next 40k beds over the next several years.
Selina is one of the world's largest hospitality brands built to address the needs of Millennial and Gen Z travelers, blending beautifully designed accommodation with coworking, recreation, wellness, and local experiences. Custom-built for today's nomadic traveler, Selina provides guests with a global infrastructure to seamlessly travel and work abroad. Founded in 2015, each Selina property is designed in partnership with local artists, creators, and tastemakers, breathing new life into existing buildings in interesting locations around the world – from urban cities to remote beaches and jungles. Selina's portfolio includes 116 open or secured properties across 20 countries. For further information on Selina, visit www.selina.com or check out @selina on Instagram or Facebook.