Socialtel Selina Palermo Soho Hostel & Cowork suddenly shut down in Palermo Soho

[Canada Goose]

A girl that I was dating while I was in Buenos Aires over a year ago just sent me a WhatsApp asking for some help. I dated her a few weeks but we weren't close. I asked her what is wrong and she said that the hostel she worked at suddenly closed down with no warning or notice. Seems like a shitty thing to do to your employees. She told me that the company has had financial problems for a while now and did all kinds of shady stuff. She claims that the company was charging them for OBRA social but cut all of the employees coverage. Very shady!

She sent me a selfie and she was sleeping in the lobby of the hotel demanding answers. This is wild. Does this kind of thing happen often? Tourism must be really suffering if they are closing down suddenly like this.

 

[Betsy Ross]

Terrible! I have a feeling with the falling tourism numbers more of this type of thing will happen. I wonder what they did with the hotel/hostel guests?

Here is their Google page.

Socialtel Selina Palermo Soho Hostel & Cowork · Guatemala 4931, C1425BUQ Cdad. Autónoma de Buenos Aires, Argentinien

★★★★☆ · Hotel

maps.app.goo.gl

 

[Wally]

I am not surprised by this. Terrible of the company to charge their employees for a benefit and not pay for it. That happened to another friend and they found out the hard way going to the doctor and not being able to get attention at the level they thought. The profile of the traveler to BA is changing. I am noticing older people around at restaurants that look like they have plenty of money. Other posts are reporting the 5 star hotels fairly busy.

My sister was on a flight and she said it was mostly locals but she said the others were oil and gas employees as she could hear them talking about work. These workers and travelers will have more disposible income so top hotels will probably be ok but small and cheap hotels or hostels are probably suffering.

 

[James Bond]

A girl that I was dating while I was in Buenos Aires over a year ago just sent me a WhatsApp asking for some help. I dated her a few weeks but we weren't close. I asked her what is wrong and she said that the hostel she worked at suddenly closed down with no warning or notice. Seems like a shitty thing to do to your employees. She told me that the company has had financial problems for a while now and did all kinds of shady stuff. She claims that the company was charging them for OBRA social but cut all of the employees coverage. Very shady!

She sent me a selfie and she was sleeping in the lobby of the hotel demanding answers. This is wild. Does this kind of thing happen often? Tourism must be really suffering if they are closing down suddenly like this.

Did you send her money? That is the worst when they ask for money. I had that happen a few times. Everything looks at the foreign expat as rich. Tough situation. I know someone that worked there. Will send them a WhatsApp asking them for more information.

 

[Colin]

I know someone that works here too. They are angry and want answers. The hotel quietly asked their guests to leave earlier in the day and moved them to other places. The more I think things are changing, the more I see they are a the same.

 

[dai]

Sorry to hear about this for the employees.

Selina as a global chain went bankrupt last year. Seems like whatever they have been trying to do to sort this mess since then didn't work. I read that they closed down all their branches in Brazil a few months ago too

 

[Darksider415]

I used to live around the corner from there, and the crowd was always the digital nomad bro types, so not too surprised given how fewer of those are down here, these days

 

[Cardiac Arrest]

Sorry to hear about this for the employees.

Selina as a global chain went bankrupt last year. Seems like whatever they have been trying to do to sort this mess since then didn't work. I read that they closed down all their branches in Brazil a few months ago too

How terrible for the employees! I heard they went bankrupt last year but can't imagine things would be easy in Argentina anyway. Yes Brazil closed down. Sounds like the sketchy owners were doing weird things in Argentina and cheating their employees.

I used to live around the corner from there, and the crowd was always the digital nomad bro types, so not too surprised given how fewer of those are down here, these days

Correct. I dated a few girls that were from Europe that would stay here. Lately I don't see the digital nomads with no money around BA. 🤣 I actually like that not so many of these digital nomads are around now.

 

[JonJLA]

Sorry to hear about this for the employees.

Selina as a global chain went bankrupt last year. Seems like whatever they have been trying to do to sort this mess since then didn't work. I read that they closed down all their branches in Brazil a few months ago too

Heard about them closing down. I never understood their model and didn't think they could make enough to make money. I guess this proves it to be true. Maybe they sold other stuff like beer or things besides the price of accommodations. Travel seems to be at the higher end. My apartment still does well with Airbnb. When I first got it about 14+ years ago when ApartmentsBA bought it and furnished and decorated my apartment, they talked me into putting in a $1,600 dollar mattress. At the time I thought it was silly for an apartment rental. There was no Airbnb at the time but that turned out to be a genius decision. Over 14 years later and my Airbnb still is pumping out rentals and my mattress is still very solid.

I was talking to my neighbor who uses a cheap mattress and he has had to change it 2 times since he has owned it. He just gets cheap mattresses. People will pay more for nicer property.

 

[earlyretirement]

Bummer for the employees. How terrible. It sounds like the company was very unorganized. Especially if they were charging for taxes/benefits and then not paying for it. Sounds like they have a lawsuit on their hands but if the company is bankrupt already probably not much they can do.

I used to live around the corner from there, and the crowd was always the digital nomad bro types, so not too surprised given how fewer of those are down here, these days

Yep, I was just in Buenos Aires a few weeks ago and that profile of travel I saw ALL the time around Palermo I didn't see at all. Normally I see guys working with their laptops drinking $6 USD coffees but this trip I didn't see any. They have moved on to cheaper pastures.

Heard about them closing down. I never understood their model and didn't think they could make enough to make money. I guess this proves it to be true. Maybe they sold other stuff like beer or things besides the price of accommodations. Travel seems to be at the higher end. My apartment still does well with Airbnb. When I first got it about 14+ years ago when ApartmentsBA bought it and furnished and decorated my apartment, they talked me into putting in a $1,600 dollar mattress. At the time I thought it was silly for an apartment rental. There was no Airbnb at the time but that turned out to be a genius decision. Over 14 years later and my Airbnb still is pumping out rentals and my mattress is still very solid.

I was talking to my neighbor who uses a cheap mattress and he has had to change it 2 times since he has owned it. He just gets cheap mattresses. People will pay more for nicer property.

What great memories @JonJLA. It was so great working with you so many years ago buying your 2 units. I'm so glad you are keeping your Palermo Uno property forever .I regret selling my 4 units there. I wish I kept one as that view is the best in BA.

I am still putting in the same expensive mattresses. Those last forever. I still have apartments I own in BA from 23 years ago and those mattresses are still going strong and always get great reviews. I discovered long ago when I was starting ApartmentsBA back in 2002 (6 years before Airbnb) that people pay top dollar at the Four Seasons and Park Hyatt and all the other 5 star hotels for dependability and comfort. I always told myself if I could re-create that, it would be a goldmine and it was.

High end is the way to go.

 

[Bingo]

I found this article online. Sounds like this company Selina had massive debts and went belly up. Last year a company in Singapore acquired them and rebranded. A dog is still a dog

Selina Sold Out of Insolvency 5 Weeks After Collapse – Exclusive

Collective Hospitality said it had acquired most of the business assets of Selina, a hotel brand focused on Gen Z travelers.

skift.com

 

[Avocado]

Terrible people to treat their workers so bad. Afuera. They need to leave Argentina.

 

[earlyretirement]

I found this article online. Sounds like this company Selina had massive debts and went belly up. Last year a company in Singapore acquired them and rebranded. A dog is still a dog

Selina Sold Out of Insolvency 5 Weeks After Collapse – Exclusive

Collective Hospitality said it had acquired most of the business assets of Selina, a hotel brand focused on Gen Z travelers.

skift.com

I've always said the cheap end of the market is NOT where you want to be. It's a race to the bottom at that end with cheapo guests. The backpacker/tango dancer/brokemad has no money to be made. You want to go high end. Even with a slow down in tourism, all our clients are making great ROI on their rental apartments but they went very high end and getting $2,000 USD mattresses. Low end is not where you want to be, especially Buenos Aires. Too much competition at that end.

 

[Johnny]

I've always said the cheap end of the market is NOT where you want to be. It's a race to the bottom at that end with cheapo guests. The backpacker/tango dancer/brokemad has no money to be made. You want to go high end. Even with a slow down in tourism, all our clients are making great ROI on their rental apartments but they went very high end and getting $2,000 USD mattresses. Low end is not where you want to be, especially Buenos Aires. Too much competition at that end.

Definitely. I took the advice to go very high end and I can't be happier. I first bought with Mike in Guadalajara Mexico about 6 years ago. I just piggybacked on a high end building he bought at ground breaking stage. We made so much money on that! I thought it would be crazy to buy $2000 dollar mattresses but it was genius. Now in Buenos Aires my penthouse unit is always booked. I can't wait to stay in it.

I bought a bigger 2 bedroom apartment in another building in Palermo Hollywood and the value already went up a good clip. I already had an offer to purchase that and flip it. But I will just hang on. Property values keep going up each month and I want to rent it out. If it does anywhere as good as my 1 bedroom unit I will be extremely happy.

I'm flying down with Mike in a few weeks and taking a lot at his boutique apartment hotel project. Can't wait! If anyone else is in town I'm sure we can all meet up.

 

[Uncle Wong]

Definitely. I took the advice to go very high end and I can't be happier. I first bought with Mike in Guadalajara Mexico about 6 years ago. I just piggybacked on a high end building he bought at ground breaking stage. We made so much money on that! I thought it would be crazy to buy $2000 dollar mattresses but it was genius. Now in Buenos Aires my penthouse unit is always booked. I can't wait to stay in it.

I bought a bigger 2 bedroom apartment in another building in Palermo Hollywood and the value already went up a good clip. I already had an offer to purchase that and flip it. But I will just hang on. Property values keep going up each month and I want to rent it out. If it does anywhere as good as my 1 bedroom unit I will be extremely happy.

I'm flying down with Mike in a few weeks and taking a lot at his boutique apartment hotel project. Can't wait! If anyone else is in town I'm sure we can all meet up.

Hi @Johnny I am also down in BA while you are there. I'm meeting with Mike in his office in Palermo Soho. Maybe we can all go to lunch together. I would love to also see your apartment if I could. I am thinking about buying with the same developer in another project in Hollywood. Is that the one you also bough another unit in? Is it Feel Palermo? Wow, that would be great if you're also in that building.