So thats a significant, significant improvement and weve got a clear kind of path to
profitability. At the same time, our corporate, you know, talking about profitability and increasing scale and operational efficiency, we are, you know, were getting better and were also improving our corporate overhead.
So our corporate overhead has decreased as both a percentage of revenue and on an absolute basis. If you look back many, many years ago in our investor deck,
you can kind of find this stat, youll see that it was essentially one to one. And today were looking at, were about 20% and were continuing to sort of reduce corporate overhead.
And, and its really, really important to note that its not just because the revenue has sort of increased 142% in the first half of this year.
Its also, its the absolute sort of number. So at the same time that were driving more revenue, were also reducing costs in optimizing our teams.
Rafael Museri: Just to add to that.
So, you know,
people were always questioning what, 2015, 2016, 2017, the biggest department in Selina was the tech department, and weve invested a lot in, in the platform. We own our PMS, which is the property management software. We build our own tech, we
build a lot of products, anything that now, after seven years, we are finally starting to see the benefits from that.
The saving is a result of those
technology investments. It was impossible in those days to manage 3,000 employees in 25 countries, 6 continents without having very, very strong tech and IT. And the fact that an absolute number, half of the team that used to work in 2018
managed more than three times more revenue, thats an indication of those achievements.
And Ill say another side of Selina is, you know, we
were born from a team that came from more the lifestyle content programming. We were not surrounded by many ex-hospitality experts in the first few years. And I think that today, in the last year, I think 80%
of our C-level coming and joining from public companies, and some of them with 20 to 25 years in hospitality, managing much bigger portfolios that Selina currently.
So, I believe there is a lot of opportunities at the unit level to improve efficiency by bringing those experts into our life. But I think that it was
important that we start from a new kind of, you know, to disrupt an industry, you want to come fresh. So the fact that fresh content people disrupt the product, and now you give this product to the hands of, you know, more traditional professional
hospitality people, I have a lot of expectation, a lot of space for improvement for the next two, three years coming.
Mark Moran: Fantastic.
Thats very helpful to understand the past profitability here. Now, in talking about various improvements that are going on, whether its from a corporate overhead perspective, bed space metric, what have you, one of the things that I
think is really interesting is with this leasing model, youre able to go in and to convert these old hotels into something exciting, something new. Whats the type of return that youre seeing on these spaces that youre taking
over? What does the future market look like for that and how do you see that playing into the growth strategy for the company?
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