Award-winning property investment company Cogress today announced an £80m partnership with Latin-American hospitality startup Selina. The deal will give Cogress’s community of investors an exclusive opportunity to invest in the UK and Portuguese expansion of a global hotel chain valued at $850m.
The ‘hotel of the future’, Selina delivers experience alongside accommodation and includes coworking spaces designed to appeal to local freelancers and digital nomads. The hospitality brand has caught the attention of high-profile investors around the world, helping it achieve a post-money valuation of $850m.
There are notable synergies between Cogress and Selina. Founded in 2014, they both have a tendency towards disruption; Cogress was among the first in the UK to open property development investment opportunities to individuals beyond the super-wealthy, while Selina was the first to target a growing millennial market seeking remote working, authentic experiences, connectivity and an insta-worthy aesthetic.
“The alternative finance industry has succeeded because it gives investors entry to opportunities they would otherwise have struggled to access,” explains Cogress CEO Tal Orly. “This new deal with Selina is exclusive to Cogress investors, and we’re delighted to be able to offer our community the chance to engage with this global startup, get excited when they see reviews in press, visit the hotels in their portfolio and know that their investment is as vital to its growth as the venture capitalists and big names already associated with Selina.”
Cogress investors will be collectively funding the conversion of Selina’s hotels in Portugal and the UK. The first investment opportunity, revealed this week, is a portfolio of six hotels delivering target returns of up to 12% p.a over the next three years. They include Selina’s recently launched ‘Secret Garden’ site in Lisbon, which achieved occupancy rates of 80% just five months after opening. The portfolio also includes a 219-bed site in Porto, a hotel in Manchester’s trendy Northern Quarter that features three cafes and two clubs, the conversion of Liverpool’s iconic YMCA building into a 324-bed hotel and a hotel in Birmingham’s Jewellery Quarter that will feature a Latino bar in the basement.
This first portfolio is open to all but has been designed especially for Cogress’s current investor community, with a minimum investment amount of £10,000 and higher target returns than we’re likely to see in future portfolio launches.
The company will be releasing subsequent portfolios, as well as individual hotel opportunities, with an aim to lowering the minimum investment amount and extending the opportunity to more investors. Cogress will also shortly be extending its Innovative Finance ISA to give ISA investors the opportunity to invest in Selina’s UK and Portuguese sites.