International hospitality and co-working chain Selina will open a branch at 52 Yefet Street in Jaffa (Scottish House).
Y Box, which rents the property from Ampa Israel, will sublet 3,500 square meters to Selina. Some of the sublet space is in a preserved building.
The sublease is for 13 years. Selina will not pay rent during the first three years, when renovations are being carried out, after which rent will be NIS 5 million a year or 20% of the annual proceeds up to a NIS 30 million ceiling. The agreement also stipulates that the renter will receive NIS 30 million in order to adapt the space to the requirements of a hostel.
A "Globes" story published in March described the massive entry of hostel chains into Israel this year, among them Selina's branches, Meininger, and A&O, in addition to expanded operations by local chains, such as Abraham Hostels.
Talking about this flourishing new sector, Selina Israel CEO Yossi Mautner told "Globes" that the Selina chain had 12 different types of accommodation at prices ranging from $35 to $400 a night.
Selina is emphasizing not just opening branches in Tel Aviv. The Yefet Street branch, which will not be Selina's first in Israel, will be renovated and adapted. Selina already announced that its first branch, to be opened in the Neve Tzedek neighborhood in Tel Aviv, would have 144 beds. The second branch is slated to open on Levinski Street in a building converted from offices and adapted.
The Selina chain said, "Selina Jaffa will offer diverse accommodation options with the chain's unique mix, including boutique rooms and suites, standard rooms, and shared rooms, together with stylish workspaces and a cultural center."
Selina was founded by Israelis Rafael Museri and Daniel Rudasevski five years ago. The company now has over 40 active properties in Central and South America. The chain is currently expanding to North America and additional European countries: three branches operate in Portugal (Lisbon, Porto and Ericeira) and a first branch was recently opened in Greece. Branches will soon be opened in London and Germany. Initial hotels will be opened in New York, Miami, and Tel Aviv by the end of the year.
Most of the sites have 3,500 square meters each for sleeping, stores, workspaces, and activities like yoga and Pilatis, surfing lessons, recording studios, live performances, etc.
Published by Globes, Israel business news - en.globes.co.il - on June 16, 2019
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