Horwath HTL - Industry-Report - Coworking-Adding-Value PDF
Horwath HTL - Industry-Report - Coworking-Adding-Value PDF
Horwath HTL - Industry-Report - Coworking-Adding-Value PDF
Coworking:
How hotels can add
relevant value to the
coworking market
NOVEMBER 2019
Coworking: How Hotels Can Add Value Industry Report - November 2019
How hotels can add relevant value Silicon-valley start-ups and their work environments often
to the coworking market. count as a role model for the stereotypical coworking space:
Everyone is talking about the term ‘coworking’ as it is one of an open-plan work area, café, internet access, catering, and
the greatest inventions of the 21st century and, it has shown spaces for commuting and gaming. Occasionally included are
an incredible performance and growth over last 10 years. event areas, conference rooms and private offices.
Coworking businesses are now thriving and being introduced
into other industries. Coworking concepts attract by their modern, charming design
and inspiring atmosphere. Flexible “Hot Desks” in open-plan
How we combine our private and work lives has changed. areas, dedicated “fixed” desks and “private offices” can be
Highly driven by developments in digitalisation, mobility and rented through daily passes, “pay-by-use” models, monthly
globalization, job roles are changing, becoming redundant and renting contracts as well as membership models. When joining
being newly created. A computer and network access seem to a coworking space as a member, Wi-Fi connection, printing
be all that is required for an employee to work. Companies are connection, welcome service, postal service, 24/7 opening
moving away from long lasting rental contracts and property hours, cleaning service, community manager, free coffee,
investments. By offering flexible work spaces, businesses are telephone boxes, conference rooms for hourly rent as well as
responding to the increasing relevance of the “new work” style: networking events, etc. are most of the time already included.
agility, better work-life balance, and the sharing economy.
Along with the development of traditional coworking spaces,
Coworking spaces were originally designed as second homes a large number of business centres opened between 1980 and
for “business nomads”, people who combine travel with 2014. Their customers are “classic” office users who want to
work and value a space for networking, collaboration, and work in a business-like environment in private offices, enjoying
community events. The new working generation is looking the pleasures of included office services as well.
for a reliable partner that offers modern, multi-functional,
work-life spaces, preferably situated near city hubs and
transportation hotspots such as railway stations.
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Coworking: How Hotels Can Add Value Industry Report - November 2019
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Coworking: How Hotels Can Add Value Industry Report - November 2019
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Coworking: How Hotels Can Add Value Industry Report - November 2019
In general, “Ruby Works” renting options vary from coworking space would bring. As coworking operators are well
membership without a desk to a membership including a known for their lifestyle values and inspirational atmosphere,
flexible / fixed desk starting from 300 € per month. It is also some of the dusted and “boring” city-hotel designs could be
possible to join as a non-member for about 30 € per day. easily transformed into modern, individual live-life-play-work
models. There may not exist an easier image transformer with
All packages include the option of using different workspaces, higher marketing potential.
for example the lounge, library, connect-meeting rooms
and intensity units. Amongst others, work services offered Taking advantage of the country-wide distribution of these
are unlimited highspeed Wi-Fi, a printing contingent, office hotel brands, a membership-concept including the use of hotel
services such as ancillary costs, cleaning and concierge services rooms and coworking lobbies could even let the rather “simple”
as well as extras (barista coffee, tea, mineral water). Monthly city-hotel concept be turned into “brain-food-companies”. As
packages also include a 24-hour access, a business address, rent24 and accelerators-coworking models have done, hotels
mail services and a meeting-room contingent (2 hours per could also participate in and support their customer’s business,
month). The added floor plan (Ruby Works Hans – Hamburg) giving them the chance to organise their own promotions,
shows how Ruby is combining the variety of coworking areas music gigs, art exhibitions and other events, not only in one
on one floor (further offices and conference rooms can be city, but nation-wide.
found on upper floor levels).
Of course, membership opportunities can also be interesting
Assume that a classical city hotel brand, with an attractive for other companies whose employees often travel for work.
positioning within the city, with about 35 locations spread all- Since a reasonable network of these city hotels is already
over Germany implements coworking spaces in each of their implemented and locations are safe, a fast roll-out of this
hotel lobbies. Each lobby covers a size of about 500m², about membership model can be easily realised, also beyond the
the same size as an individual coworking space. German “Big 7” cities. Just recently the “Immobilienzeitung”
has announced, again, that the “flex-market” is thriving. Not
Lobbies of these city hotels are most often empty between only in the “Big 7” but also in the so-called B-cities.
9 and 5, their restaurants and cafés vacant. The concierge at
reception could cater for co-workers. Admittedly, some city
hotels would greatly benefit from the refreshing re-design a
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Coworking: How Hotels Can Add Value Industry Report - November 2019
About 80 cities with more than 100.000 inhabitants and Although there are some challenges involved in successfully
50 cities with office space of more than one million square implementing coworking spaces in Germany, there is no reason
metres offer great potential. The bigger the city and the why this concept should not give great benefit to a hotel. It
number of residential companies, the more interesting it gets might even be “ignorant” to ignore the additional sales factor
for coworking operators to fight for the rare central positions coworking services would bring.
(often exactly those locations where city hotels are already
based). A “howork” hotspot won’t be in competition with international
players like WeWork, ZOKU or rent24, as they are following
Of course, the classic traveller and hotel guest is still – also a totally different business model. It’s the choice of these
with integrated coworking spots -, welcome just the same. city-hotels to make use of this chance and build up great
The hotel, by introducing coworking opportunities, will benefit opportunities – with more or less no costs – for their daily
from another sales factor. business (and the coworking market); either with their own
concept or with the right coworking brand as a partner by
A person working in a coworking space in Berlin has to pay their side.
170 € on average (even more in other cities) for a flexible
working desk per month. For one member, the coworking
operator calculates with about 14m² of space per person.
Continuing this calculation example: In a space of 500m² 35
coworking spots could be implemented. This would make up
about 6.000 € per month counting up to about 72.000 € a year
of additional revenue for the hotel. Not having included the
extra hotel guests and other benefits a coworking space could
generate. Even if coworkers do not want to use the benefit of
the hotel combination, maybe their guests would, or they will
just take advantage of the well distributed network of those
city-coworking hotspots in Germany.
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Authors Horwath HTL
At Horwath HTL, our focus is one hundred percent on
hotel, tourism and leisure consulting. Our services cover
Lea-Sophie Zwoch every aspect of hotel real estate, tourism and leisure
Consultant development.
Horwath HTL Germany
[email protected] Our clients choose us because we have earned a reputation
for impartial advice that will often mean the difference
between failure and success. Each project we help is
different, so we need all of the experience we have gained
over our 100-year history.
Our Expertise:
• Hotel Planning & Development
• Tourism & Leisure
• Hotel Asset Management
• Hotel Valuation
• Health & Wellness
• Strategic Advice
• Expert Witness & Litigation
Sources:
Interviewees: Kerstin Flohr, Design Offices; Catherine Hilt, Ruby Works;
Katy Zühlke, St. Oberholz Articles and Books: “Betreiber nehmen B-Märkte
ins Visier: Nürnberg, Hannover und Essen sind die Top 3”, 1909.2019,
Immobilienmanager, “Coworking Spaces”, Agnes Katharina Müller, Habitat
International, LTD Verlag Dr. W. Hopf, 2018, Berlin; “Coworkingguide”;
Website; “Co-working Markt in Europa wächst”, Hospitality Inside,
15.06.2019, “Flexible Office Space – Coworking & Co in Big 7”, JLL 2019,
“Flexible Workspace Report”, Art Invest Real Estate, Köln, March 2019;
“Hotelbau”, Yearbook 2019; “In the World of NYC Hotels, It’s an Ace in the
Hole”, Fathom, Jeralyn Gerba, 19.06.2019; “Inside the Zoku Loft Hotels”,
10.10.2016, Leanna Garfield, Business Insider; “MA Living Apartment -
Hotels mit offener Lobby”, 12. Juli 2019, Tageskarte; “Newcomer WOJO
soll größte Coworking-Marke Europas werden“, 15. Mai 2019; „Real I.S.
Setzt auf Hotelhybride“, 23.05.2019, Peter Dietz, Immobilien Zeitung;
“Ruby Works “, Website “ShareDnC”, Website; Statista 2019; “Teure
Community”, Interview with Christoph Hoffmann, Hospitality Inside,
14.06.2019, „The 2018 State of Coworking spaces”, deskmag, “We Work”,
Website; “What is Coworking”, Robert E. McGrath, 2018, Urbana, Illinois,
USA; “Vox.com / recode” 09.08.2018
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AFRICA EUROPE LATIN AMERICA
Ivory Coast Andorra Argentina
Rwanda Austria Brazil
South Africa Croatia Dominican Republic
Cyprus Mexico
ASIA PACIFIC France
Australia Germany MIDDLE EAST
China Greece UAE & Oman
Hong Kong Hungary
India Ireland NORTH AMERICA
Indonesia Italy Atlanta
Japan Netherlands Denver
Malaysia Norway Miami
New Zealand Poland Montreal
Singapore Portugal New York
Thailand Serbia Norfolk
Spain Orlando
Switzerland Toronto
Turkey
United Kingdom
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