Quite interesting to have a look at the results of IWG (Regus...

Quite interesting to have a look at the results of IWG (Regus brand).

IWG has 500,000 customers (vs 57,000 for Servcorp).
In their H1 24 presentation, they indicated that they had 3,751 locations vs 582 for Wework, 160 for Industrious and 150 for Servcorp.
According to them, these 4 companies increased their cumulated number of locations by 7 % between Dec 23 and June 24.

After a good FY 23 (calendar year) with 10 % increase in revenue and margin increase, H1 24 is more difficult for IWG.
No revenue increase.
"It is worth noting that as we expand our network coverage a significant proportion of new rooms opening are in
more rural and suburban locations, which generally deliver lower RevPAR on a like-for-like basis".
During H1 24, revenue per available room decreased by 14 % yoy (on constant currency).

We have no indication that Servcorp is following the same strategy (unlike IWG, Servcorp average prices are increasing), so the new co working space from IWG are not competing much with Servcorp.

Unlike SRV, IWG has just returned to profit* and still has a large pile of debt (vs large net cash for SRV).

* for the first time since covid.