World’s largest flexspace provider sees a two-fold increase in new franchise partners and number of locations committed by franchisees in 2021 vs 2020
Location commitments by franchise partners increase from 67 in 2020 to 150 last year
Deals signed in 15 new countries including USA, India, Scotland, Italy, Malaysia and Spain
Landmark deal signed in Thailand to bring 40 new flexible workspaces over the next decade
New franchising milestone in Hong Kong sees formation of Joint Venture with Hysan Development
IWG’s global network continues to grow and has more than four times the number of locations than its nearest competitor
February 25, 2022: IWG, the world’s leading provider of flexible workspaces with brands including Regus and Spaces, has announced that it has more than doubled the number of new franchised centres around the world in 2021 compared to 2020.
IWG’s overall results show a marked increase on the previous year’s figures, with a total of 29 deals signed and 150 territory commitments made. This compares to 15 deals signed and 67 new territory commitments in 2020. In 2021 alone, IWG added over two million new customers to its global network of flexible workspaces.
IWG has been championing hybrid working as a way for global workforces to work effectively in different ways and in different places for years. With the world adapting to living with Covid-19, there has been a clear impact on how people are choosing to live and work. Employees are embracing the ability to live and work locally, following an extended period of working from home. The accelerated adoption of hybrid work is also being fueled by businesses realizing that they can attract and retain the best talent, while reducing their operating costs by shifting to the model.
Hybrid working – where employees divide their working hours between their company headquarters, their home, and a local flexible workspace – helps maximize productivity, while creating a more sustainable way of working for both people and the planet.
In H2 alone, 86 new centres were added to IWG’s global network as part of 12 new franchise agreements in 2021. This compares to eight new deals and 38 new centres agreed during H2 2020, highlighting the ongoing demand for flexspace working. H2 2021 was also marked by deals strong global expansion, featuring first-time deals in USA, India, Scotland, Italy, Malaysia and Spain.
Mark Dixon, Founder & CEO of IWG commented: “We are continuing to see extraordinary levels of demand in hybrid working solutions, as evidenced by our strong growth throughout 2021. Last year was an incredibly successful year for our franchise partnerships, as more businesses commit to hybrid models. As this growth continues, we look forward to adding thousands of locations to our network, bringing asset-light hybrid working solutions closer to where employees are based.”
The growth of IWG’s franchise network has been mainly concentrated in suburban locations, emphasizing the demand for workspace solutions in the heart of local communities. The increasing popularity of the hub-and-spoke model, with one central headquarters and smaller supporting offices, is a key driver for this. For companies, the hub-and-spoke model makes it easier to distribute a workforce. It also reduces fixed real estate commitments whilst enabling employees to work in a modern, professional and well-equipped environment. The benefits of this model extend further, with employees experiencing a reduced commute, enabling them to spend more time with family, as well as boosting local economies.
Businesses around the world are realizing the benefits of flexible working. In December, IWG celebrated its largest regional franchise deal. Under the franchise deal, Ratanakorn Asset can develop flexible workspaces in every corner of Thailand with the exception of Bangkok and the adjoining provinces. In 2022 alone, Ratanakorn will partner with IWG to open five new centers. These new locations are part of the IWG and Ratanakorn strategy to open at least 40 new flexible workspaces in Thailand over the next 10 years.
Another milestone was also met in H2 with the formation of a Joint Venture with Hysan Development in Hong Kong. The JV will acquire and operate IWG’s 32 existing locations across the Greater Bay Area, and will continue to expand the business presence of IWG’s brands in the vast and growing workspace market in the region.