IWG set for record network growth as Group posts highest-ever revenue in 34-year history

IWG, the world’s leading provider of flexible workspaces with brands including Regus and Spaces, anticipates record network growth in 2023 as businesses of all sizes embrace the benefits of hybrid working.

Last year, IWG added over 450 locations to its global network, bringing its footprint to over 65m sq. ft, 90% of which were added via management agreements or partnering deals. In 2023, IWG will continue its focus on capital light expansion.

This growth comes as businesses realise the benefits hybrid working has for people, the planet and profits. A recent study by Stanford professor Nicholas Bloom found that hybrid workers are about 3-4% more productive while also offering businesses a substantially lower cost base. A study by Global Workplace Analytics indicates that implementing hybrid working can save businesses up to ZAR 200 000 per year, per employee, due to enhanced productivity, reduced real estate costs, lower absenteeism, and decreased turnover.

This is corroborated by IWG research, which found that almost four in five (79%) hybrid workers say they have been more productive since pre-2020. In a randomised control trial by Professor Bloom, the quit rates of those who followed hybrid working were also down 35%. Hybrid employees are not only happier, but they are also better off financially, as shorter commutes to local workspaces mean increased savings. IWG research found that 71% of workers will save more money using an office close to home than on additional commuting costs.

This ‘Great Lease Resignation’, where more businesses exit traditional, long-term office leases and the changing demands of workers, has increased the desire for hybrid working solutions. This is particularly strong in the suburbs, former dormitory towns, satellite villages and countryside communities. In parallel, businesses everywhere typically opt for a fraction of their former conventional city-centre space in favour of sites closer to where their employees live.

The changing habits of workers, and their desire to limit long commutes into city centres, have led to widespread changes in the real estate footprint of many large companies. Many are downsizing in city centres, replacing long, restrictive, and expensive leases with flexible space with operators like IWG. They are also bringing flexible workspace into local neighbourhoods, closer to where their people live and want to be.

This has propelled the IWG business forward, and to meet the increasing demand, IWG has been expanding its network with a focus on rural and suburban locations.

Mark Dixon, Founder and CEO of IWG, said: "The growth juggernaut in hybrid working continues, and 2022 was a record year for IWG with our highest-ever revenue produced in our 34-year history. We have delivered this through our multi-brand strategy, primarily Regus and Spaces, and continue to have the largest global network of hybrid workspace by far.”

“This momentum will not slow, and we will continue building with more and more companies permanently embracing the hybrid model.”

Operating in over 1,100 towns and cities in more than 120 countries, IWG now counts 83% of the Fortune 500 amongst its global customer base. ​

(ENDS)

About IWG PLC

IWG is leading the workspace revolution. Our companies help millions of people and their businesses to work more productively. We do so by providing a choice of professional, inspiring and collaborative workspaces, communities and services.

Digitalisation and new technologies are transforming the world of work. People want the personal productivity benefits of living and working how and where they want. Businesses want the financial and strategic benefits. Our customers are start-ups, small and medium-sized enterprises, and large multinationals with unique business goals, people and aspirations. They want workspaces and communities to match their needs. They want a choice.

Through our companies, we provide that choice and serve the whole world of work: Regus, Spaces, No18, Basepoint, Open Office and Signature. We create personal, financial, and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet to individuals and the next generation of industry leaders. They all harness the power of flexible working to increase their productivity, efficiency, agility, and market proximity.

Join us atwww.iwgplc.com