The curtain has fallen on Selina Israel. After its UK-based parent company encountered financial troubles and was acquired by a Singaporean hotel chain, Selina has officially ended its operations in Israel. All its sites have been transferred to new management. The Singaporean chain purchased only Selina's operations, not the brand itself, meaning some Israeli locations will continue under the Selina name until the brand is sold. Existing hotels will then need to negotiate franchise fees for its use.
In the facility next to the Sea of Galilee, a popular Selina location, the property owner issued an eviction notice due to unpaid rent and bounced checks totaling $145,000 for August. Today, the owner announced Selina Israel and its subsidiaries would cease managing all hotels immediately to prevent deepening insolvency.
The site in Ma'ale HaHamisha, housed in a historic building once used for Dead Sea Works employees, reverted to Gadi Friber, owner of Gordonia. He had sublet the structure to Selina and now plans to operate it under the Ya'arim brand.
In Mitzpe Ramon in southern Israel, where Selina had two successful complexes, the town location was handed over to the Hagag Group, taking Selina's place, while the crater site was taken over by landowner Sami Alkarinawi.
The hotel on Tel Aviv's promenade returned to Capsule Group, which rented the building from oligarch Roman Abramovich. Selina vacated its first Israeli hotel in Neve Tzedek three months ago under pressure from its owners. Another site in the Jerusalem hills has ceased operations.
Selina employed about 300 people in Israel, with some left without jobs. Hotel workers continue at locations still in operation.
Selina entered Israel in 2019, promising hotels with 5,000 to 7,000 rooms, following success in South America with hostels for digital nomads offering high-speed internet, co-working spaces, and community content.
In hindsight, Selina's struggles began with rapid expansion into Europe and the U.S., where it lacked a competitive edge. Despite financial woes, the company managed a NASDAQ IPO in October 2022, valued at $1.2 billion, but later saw its stock plummet by 99%. Last month, Selina's UK-registered parent company declared insolvency, and its operations were sold to a Singaporean company uninterested in maintaining its Israeli presence.
Thus, the dream of founders Rafi Museri and Daniel Rudasevski to establish a Gen Z tailored-leading international hotel chain has come to an end.