While tech stocks were falling, Selina Hospitality (NASDAQ:SLNA) stock went to the moon.
The youth-focused hospitality brand rose over 300% on Oct. 27 and was holding most of that gain on Oct. 28.
Selina came public through a merger with BOA Acquisition Corp., a Special Purpose Acquisition Company (SPAC) that raised $200 million for the purchase last year. The SPAC closed at $9.13. Selina was trading on Oct. 28 at $34.
While inflation is hitting many areas of the economy hard it has yet to impact travel as people seek adventure after the Covid-19 pandemic.
What Is Selina?
Selina is focused on young travelers with what can be co-working spaces in luxury locations, and sleeping arrangements ranging from single rooms to shared hammock spaces. The company is based in London and lists $395 million in investment according to Crunchbase. The name comes from the Greek feminine word for “moon.”
Its investor presentation showed it has 35,000 beds in 134 locations, in places like Costa Rica and New York City. The idea is that it buys underperforming properties, through partners, then converts them for its target demographic and manages them through its software platform.
The company isn’t just selling vacations. It has a partnership with freelance marketplace Fiverr (NYSE:FVRR) and Canadian payment company Nuvei (NASDAQ:NVEI). It’s also looking to run music festivals and wellness retreats.
Selina’s latest audited financials show a loss of $139.3 million and revenue of $35.2 million. It won fans among investors for “relentless experimentation” and for appealing to young travelers as the Covid-19 pandemic is ending.
SLNA Stock: What Happens Next?
SLNA stock is a pure speculation play, but an interesting one.
How much of the one-day gain it manages to hold onto is an open question. But Selina does have some unique concepts, a pronounced willingness to innovate, and a reasonable target demographic it might keep serving as it ages. With its technology in the background, speculative investors may give it a chance.
On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
