https://www.prensa.com/economia/representantes-de-cadena-hotelera-selina-en-costa-rica-son-buscados-por-el-ministerio-de-trabajo-200-extrabajadores-alegan-falta-de-pagos-tras-cierre/

The Costa Rican Ministry of Labor and Social Security (MTSS) remains unable to locate the legal representatives of the Selina hotel chain, following the closure of 11 establishments between August 2023 and May 2024, leaving at least 200 workers without their employment benefits.

This was confirmed by Labor Minister Andrés Romero in statements to Costa Rican media outlet CR Hoy , where he described the situation as “very complicated” due to the group’s legal structure and the participation of foreign capital.

According to Romero, despite the Ministry’s repeated calls for conciliation hearings, no representative of the business group has appeared before the authorities.

“What was filed was a complaint from approximately 200 workers, following the closure of at least 11 companies belonging to the Selina group. The Ministry has already conducted an inspection and found a labor violation: termination letters were not issued, the corresponding benefits were not paid, and, in some cases, minimum wages were not met,” Romero explained.

According to the minister, although former employees have participated in conciliation processes where amounts for vacation time, overtime, bonuses, and severance pay were calculated, the employer’s lack of participation has prevented any progress toward payment agreements.

“The minutes generated in these conciliations serve as support for workers in a judicial proceeding,” Romero added, explaining that the Ministry is currently conducting a registry analysis to identify the person with legal responsibility for the companies.

During the interview, he stated that, although conciliation is prioritized to expedite payments, the possibility of taking the case to court is not ruled out if those responsible cannot be located.

Meanwhile, as a support measure, the Ministry of Social Security (MTSS) has activated job placement mechanisms to reintegrate those affected into the labor market.

According to a former general manager of one of the brand’s establishments, the company had accrued 22 days of vacation time, approximately 144 hours of overtime, in addition to benefits and other labor rights, equivalent to 20 million Costa Rican colones (CRC) (approximately $38,000), according to the same media outlet.

Selina’s Costa Rica hotel closures began between August and September 2023, and within a nine-month period, all 11 properties permanently ceased operations.

The hotel chain, which once had around 30,000 beds, has seen its value plummet since its stock market debut in December 2021, with a valuation of $1.2 billion.

On August 22, international media outlets specializing in the hotel and tourism industry reported that Collective Hospitality had acquired the majority of Selina’s subsidiaries, including approximately 100 hotels in 22 countries, focused on attracting Generation Z and millennial customers.

According to InvestingPro , Selina sought to reduce costs during 2023, in addition to signing a debt agreement with convertible bondholders and raising funds from an investor.

Selina was founded in Panama in 2015 by Daniel Rudasevski and Rafael Museri , who said they arrived in Panama several years ago, but it was in Pedasí where they found the opportunity to invest in the real estate sector.