The hostel, F&B and co-working concept is nurturing closer connections with its local communities, while tapping into a lifestyle trend for remote working, travel and wellness
Selina, the hostel, shared workspace and F&B concept, is looking to drive growth in the UK by building links with customers in local communities, country director Eros Ciccolini tells MCA
The concept, which was founded in Panama and is now listed on the Nasdaq Stock Market in New York, currently has six locations in the UK.
With a presence in Birmingham, Brighton, Liverpool, London Camden, Manchester and Margate, each location offers a “unique experience that embodies the local culture”.
Billing itself as a lifestyle concept in the mould of Soho House, Selina is pitched in part towards “digital nomads”, young freelancers looking to work remotely while travelling.
Offering a more upmarket, curated but still bohemian hostel experience, the concept also includes wellness classes such as yoga and meditation, tech talks and networking, while partnering with local artists, craftsmen and tastemakers to curate the experience.
In terms of F&B, Selina hails its “diverse and locally-inspired” offering, with a variety of in-house brands that cater to a range of tastes and dietary preferences.
For example, Powerplant is a vegan and fresh produce brand; while HOWM creates menus inspired by the local cuisine.
Selina also collaborates with local chefs to create unique concepts, incorporating local flavours and ingredients.
With a focus on spaces that foster social connections, Selina says two-thirds of its guests make a friend during their stay.
“Unlike traditional hospitality models that often cater primarily to business travellers and tend to isolate guests from the local community, Selina actively encourages interaction between guests and locals,” Ciccolini tells MCA. “We host events and activities that bring together travellers and community members, fostering a sense of connection and belonging.”
The brand caters to a type of customer that has been “largely overlooked” by traditional hospitality businesses and is “deeply committed” to engaging with local communities.
“Our revenue diversification strategy is a testament to this commitment. While in 2022, 59% of our revenue comes from room bookings, a significant 41% is derived from our food & beverage offerings, co-working spaces, and experiential activities. Importantly, nearly 60% of this non-room revenue is generated by non-guests, indicating strong engagement with local communities.”
The concept promotes a “vibrant exchange” between travellers and locals, with its wellness classes and social meet-ups.
In its UK estate, the guest mix is 60-70% UK residents with the rest comprised of international visitors.
In its F&B venues, the majority of the crowd is local, with a peak of 90% UK residents.
The group does not use traditional marketing, instead relying on organic growth and word-of-mouth.
“We’re not just offering a trend or a fad; we’re providing a lifestyle choice and a new way of travel that caters to needs that were previously overlooked by the industry.”
Selina’s target demographic in the UK aligns with its global vision: “We cater to those who seek experiences and social connectivity, transcending traditional demographic boundaries.
“We are a lifestyle brand that has successfully built a network of over 118 bespoke properties across 24 countries, welcoming a diverse range of travellers and locals alike.”
As a global brand, Ciccolini says Selina has the flexibility to adjust its pricing in response to inflation and other market dynamics, including its food & beverage offering.
“While we acknowledge the economic challenges that many are facing, we discovered that our customers continue to prioritise experiences and social connections,” he says. “Despite the pressures on discretionary spending, we’ve seen a robust demand for our unique hospitality offerings.”
The brand is “opportunistic” about expanding its presence further in the UK.
“We see a wealth of potential in this diverse and vibrant country, with many untapped areas that travellers are yet to explore,” Ciccolini adds.
“Our vision is to create a network of locations where travellers can truly live like a local, experiencing not just the well-known tourist spots, but also the hidden gems that make each region unique.”
