The Hoxton has been in the co-working business since it first opened in 2006; locals, travelers and neighbors have long used our lobbies to get work done and meet up with friends. We just never charged for it.”
Those are the words of Ennismore’s Sharan Pasricha, who is growing the Hoxton brand beyond London and into top U.S. markets such as Los Angeles, Chicago and Brooklyn, New York.
In his London Southwark property and in his new Chicago hotel, floors are dedicated to membership-based co-working spaces. The way Pasricha sees it, 200 hotel rooms are enough, and if that leaves space to create co-working options he is all in.
Hoxton is just one lifestyle brand taking the leap into co-working spaces inside?hotels. Mama Shelter’s Mama Works, Eaton Workshop’s Eaton House and others are tucking in co-working. At press time, Accor announced that by 2022 it would create 1,200 Wojo-branded coworking spaces, predominantly inside its hotels.
Pasricha is still finalizing details on pricing and membership for spaces that are set to open this summer. “With the launch of our dedicated co-working spaces inside our new hotels in Chicago and London, we’re offering an elevated lobby experience and new unique spaces for freelancers, small businesses and creative,” he says. “Ennismore Design Studio will bring the open house sensibility that The Hoxton is known for into this new venture.”
Eaton Workshop founder Katherine Lo offers more specifics about her Creator’s Room co-working spaces that are inspired by a vision to aid causes. Membership has three levels, at these monthly costs: Nomad (hot desks) for US$400; Pioneer (dedicated desk) at US$800; and Collective (private office) at US$1,800 for two people, US$3,000 for four and US$4,500 for six. The D.C. property has space for up to 452 members.
“My vision for Eaton House is to build a private workspace that is built on the progressive values of creating a better and more just world for all,” Lo explains. “Eaton House will offer the optimal setting for socially conscious leaders and groups across environmentalism, design, tech, nonprofits, activism and the arts to maximize their aspirations.”
Eaton House will go as far as to offer special support to grassroots projects and groups that may have fewer resources, as well as creatives who are showcasing underrepresented voices and stories.
Tanner Campbell, senior vice president of hospitality for Eaton Workshop, says the group is pleased with early membership numbers but didn’t share specific data.
“We’ve seen great success with Eaton House and find that it’s bringing in the right kind of community, and our hotel guests benefit from that,” Campbell says. “Both guests and members alike come and use the space, hotel guests tap into the local business and entrepreneurial community. It’s fun to watch.”
For Accor’s Mama Shelter brand, Mama Works Lyon and Bordeaux in France run at almost 100% occupancy, and there are waiting lists to join. What sets it apart is its service as members are taken care of by a team of hospitality professionals.
Mama Works invests in hardware with state-of-the-art sound-proofing and air conditioning, as well as common areas that provide a communal experience to meet and share. Membership fees vary from property to property as real estate prices vary. Co-workers can choose between daily, monthly or yearly memberships as well as between open or closed office spaces.
A network in France will soon include Mama Works Lille, and in spring 2020 the first international and integrated (to a Mama Shelter property) Mama Works will open in Luxembourg. Two other Mama Works are under construction in Rennes and Montpellier. The goal is to have 20 Mama Works across France and Europe by 2022.
Home-sharing
The other shared-economy opportunity comes from the home rental world. In late April, Marriott International launched Homes & Villas by Marriott International, marking its official move into the space,?beyond a European pilot program. This news comes as Accor struggles to profit from its home-sharing effort and after Hyatt pulled back from its own initiative.
A rebrand of the 2018 pilot Tribute Portfolio Homes, Homes & Villas by Marriott International will serve as Marriott’s newest brand that customizes luxury travel by offering access to over 2,000 premium and luxury homes — from private beach villas and countryside cabins to stone castles and urban lofts — across 100 destinations throughout the United States, Europe, Caribbean and Latin America.
In March, Mumbai-based Indian Hotels Co. Ltd. announced plan for home-sharing with a strategy rooted in experiences that leverage current assets.
IHCL’s Amã Trails & Stays, the first branded product in the home-stay market in India, wants to reach 100 properties within the country before the end of 2020, according to Puneet Chhatwal, IHCL managing director and CEO. An average night stay will range from US$100 to US$150.
Since the company is leveraging?existing properties of its sister companies — like Tata Coffee, a sister brand of the Tata Group, the conglomerate that owns IHCL — it means very low risk, according to Chhatwal.
“It allows us to test how to get to almost 100 of these (properties) relatively quickly and see if this model is innovative and makes sense, with almost no risk as we’re not putting any money into it,” he says. “We’re putting resources, we’re putting time, we’re putting effort, but there is no hard cash flow in there.”
The plan begins with nine heritage bungalows in Coorg and Chikmagalur, which have been previously managed by Tata Coffee. Taj, who will manage going forward, will add two of its own bungalows in Goa by mid-2020 under the Amã umbrella. Chhatwal says the new brand will, depending on its initial success, certainly consider global expansion. He adds that Tata Group has some 300 to 500 existing potential homestay properties.
Ultimately, Chhatwal says, the biggest opportunity is to take the lead in a space that has been dominated by the Airbnbs of the world.
“All of this was always there in the business, but the hotel industry kept sleeping,” he says. “Why not take charge and have the first move advantage rather than allowing someone else to take charge?”