Flexible workspace leader IWG launches new franchise programme in Hong Kong
HONG KONG – International Workplace Group (IWG), the world’s leading flexible workspace provider has announced a new franchise scheme in Hong Kong. The new programme allows Hong Kong franchise operators to enter the booming workspace industry for the first time, and in turn help IWG expand its global network.
Nigel Barnes, Vice President, Development, Asia Pacific, IWG says: “The serviced office market is one of the most exciting growth sectors, and a unique and differentiated model to franchise. In Hong Kong, the total space occupied by flexible workspace operations is around 3%, whereas commentators point to multi-national companies are using flexible workspace for up to 30% of their needs within the next 10-years. This suggests the opportunity is far-reaching in an industry that continues to evolve. We therefore look forward to partner with franchise operators in Hong Kong to build our network into new districts and towns across Hong Kong to respond to demand.”
A new franchise opportunity with great returns
The global flexible industry is estimated to be growing by 24% each year. By 2020, 50% of all workers will be remote most of the time. In 2022, the global mobile workforce will be 1.87 billion people. This is why global real estate giant JLL estimates that up to 30% of corporate real estate could be flexible workspace by 2030.
IWG has been running successful workspaces ever since it founded the industry in 1989. It has developed its business model through many economic cycles. Its operating model is proven, demonstrably successful and can provide partners with a highly attractive return on their investment. Currently, IWG has over 3,400 locations, in more than 1,100 cities across 120 countries/region under its brands.
As part of the plan to extend the initiative to the APAC region, IWG is excited to bring the global initiative of franchising to Hong Kong, which has been a proven success across markets including the UK, Europe, Africa, Japan and Taiwan. It now wants to accelerate its global growth with local franchise partners, allowing individual entrepreneurs to operate franchised Regus and Spaces locations in Hong Kong.
Barnes expands: “IWG offers comprehensive support including staff trainings, proprietary systems and tools, global support network and more to industry newcomers through the franchising programme. It’s an opportunity to diversify away from saturated traditional franchise industries, and benefit from strong returns. Based on our cost-effective model with low staffing requirements and an established, loyal customer base, we are positive that the franchise model will flourish in dynamic cities such as Hong Kong.”
As part of its new programme, IWG offers comprehensive infrastructure to support franchisees throughout the lifecycle of their investment. The global IWG franchise team works closely with its franchisees to ensure they have a framework to find the right location and design; are able to grow their market footprint backed by world-class operational and marketing support; and have the quality, global customer service IWG is known for.
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