Selina Hotels Transforms into Socialtels Under New Management

Entrepreneur and hotelier Gary Murray has restructured the insolvent brand Selina Hotels into a new boutique hotel concept named Socialtel, following his acquisition in August 2024. After reassessing the initial recovery strategy, Murray has successfully downsized the portfolio from 60 to 40 profitable properties, transitioning from the hybrid hostel model to a more traditional boutique hotel framework.

Murray’s approach involved significant reductions in overhead and the implementation of a new IT structure, leading to cost savings from $2 million annually to just $200,000. The rebranding focuses on enhancing food and beverage options and reducing shared dormitory spaces, leaning towards a model that caters to a Gen Z audience seeking unique and experiential stays.

Socialtel is distancing itself from the previous co-working space model, instead prioritizing high-energy, profitable elements of hospitality. Murray’s leadership has also introduced seasoned hotel professionals to steer the revamped operations, aligning more closely with traditional hotel management practices rather than the hostel-centric approach that characterized Selina.

As part of the transformation, the remaining properties are segmented into three sub-brands tailored to distinct guest experiences: a vibrant party-oriented brand, a wellness-focused option suitable for remote locations, and a collection of surf camps offering all-inclusive packages.

Murray’s strategy extends beyond operational restructuring to a substantial reimagining of property offerings, aiming to increase the average length of stay and improve overall financial performance. Plans are underway to enhance each property uniquely, ensuring alignment with local demands and market characteristics.

This ambitious overhaul aims to elevate Socialtel’s market position, targeting an expansion to 100-120 properties within five years while maintaining a conservative financial approach and solid management foundation. This transformative journey represents a strategic pivot designed to reinvigorate the brand and attract a new generation of travelers.

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Selina Hotels Transforms into Socialtels Under New Management

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