31/08/2018 Business model of Co-using spaces and risks ENGLISH ABOUTUS CAREERS CONTACT Withersworldwide — +o Recently, the concept of co-sharing economy has become increasingly prevalent. The concept of co- sharing is not only limited to physical objects but also include spaces, for example, co-working spaces ai co-living spaces and these two have been seen to merge into co-sharing space. Co-working spaces have become increasingly prevalent. They are very popular in cities with a PLE EXPERIENCE 01 MARCH 2018 in f ¥v @ insicnt QQ SEARCH Business model of Co-using spaces and risks Polly Chu PARTNER | HONG KONG Share & G a Oo TELLUS WHAT YOU THINK Brute arricue nd You may also be interested in Withers has close % Confirm Language ENGLISH strong entrepreneurial culture and prohibitive rent ~ assets In We use cookies to give you the best experience on our website. If you continue, we'll assume CLOSE you're happy to receive all cookies on this site. However, you may change your cookie settings at any time. hitpsswww.withersworldwide.comien-ghfousiness-modol-ofco-using-spaces-anc-isks 431/08/2018 Business model of Co-using spaces and risks for instance, property developer struck a dealin purchasing an ultra-luxury complex in Shouson Hill Road and converted it into 270 co-living space as Withie rsw-ortbehiyy teberraduates, —— jobseekers; prefessionais-tr-teaet-many other real estate investors and even small hotel operators are Tooking to enter tis market as there isa strong demand for smaller units amidst of sky-rocketed home prices and rents. By subdividing into more units, the total yield can be substantially increased. Hotels and serviced apartments are particularly well-poised, not least because they require relatively minimal alteration in becoming a co-living space and re- branding it with anew ifestyle and cosharing concepts, experiences and benefits. These two trends are increasingly converging. Led by multinational brands in North America, China, and Hong Kong, operators are blending the concept of co- working space and co-living space together. This. sharing culture is sprinkled with a heavy emphasis on the spectacular interior designs and lifestyle amenities of the properties such as gyms, shops, cafe and restaurants within the building to enable high quality co-working and co-living spaces. Although this represents a burgeoning business opportunity, it also raises certain business risks. Some operators do not hold or own properties in Hong Kong and operate their business by renting premises. They would have to pay high amounts of decoration fees and initial deposits, coupled with insurance expenses and marketing expenses in order to attract customers, members, sub-tenants and investors. At the same time, they may also have to organize social events (e.g. yoga classes, seminars etc.) and uphold and maintain the quality of public facilities and common areas (some premises have a common area which amounts up to 40% of the total gross floor area). These operators would have to face an immense financial pressure upon their commencement of business and they have to generate revenue by collecting membership fees, sub-tenancy rents or help organizing seminars. If these operators cannot meet their financial obligations, they may not be able to continue to run their business and accordingly, may be subject to re-entry by the READ MORE Q SEARCH Readying the life sciences sector for GDPR READ MORE Disabled spectators at events — sending the wrong signs close % Confirm Language ENGLISH v We use cookies to give you the best experience on our website. If you continue, we'll assume CLOSE 3% you're happy to receive all cookies on this site. However, you may change your cookie settings at any time. tps. withersworldwide.comien-ghfousiness-modol-ofco-using-spaces-anc-isks 28,s1oei20%8 Business model of Gousing spaces and isks Landlords and operators may continue to invest and develop the concept of co-using and co-sharing _ Properties / premises in the future in order to avoid Wit raw @rlicesped @ matured hotel rviced apartments services. However, there are quite a number of legal and business risks involved. Before the fit out process commences, operators and +852 3711 1633 Polly 82 Binkeain PARTNER | HONG KONG CATEGORY: ARTICLE Insight avn awnsee 19 SEPTEMBER 2018 - EVENTS. 11 SEPTEMBER 2028 - EVENT! Q search CLOSE % Confirm Language ENGLISH y CLOSE 3% We use cookies to give you the best experience on our website. If you continue, we'll assume you're happy to receive all cookies on this site. However, you may change your cookie settings at any time. tps. withersworldwide.comien-gbfousiness-modol-ofco-using-spaces-anc-isks 3531/08/2018 Business model of Co-using spaces and risks Planning in Losing counsel _ politically _ series: Ubbi & Withersyviord d wi debi v Ubbi READ MORE READ MORE. terminated and forfeited. In other words, af al occunants of the nronerty will lose their oc About us WithersWorldWide Online Media and news Corporate social responsibility ‘netagram Awards YouTube ur Story Twitter Our Clients acebook Diversity and Inclusion Linkedin Careers US Corporate Law News: SEC adop amendments to simplify and update disclosure requirements SEARCH READ MORE Languages Enalish Francais Italiano Pycenna Espatol ree Rix mie close % Confirm Language ENGLISH v We use cookies to give you the best experience on our website. If you continue, we'll assume CLOSE 3% you're happy to receive all cookies on this site. However, you may change your cookie settings at any time. tps. withersworldwide.comien-ghfousiness-modol-ofco-using-spaces-anc-isks 45,31/08/2018 ‘Business model of Co-sing spaces and risks | BRITISH withersworld de FRANCISCO] 1c anos ANGELES | SANTAFE Q withersworldwide ouinsesauronneys eaayane, acces sont wy eeorsaek nt vo CLOSE % Confirm Language We use cookies to give you the best experience on our website. If you continue, we'll assume CLOSE 3% you're happy to receive all cookies on this site. However, you may change your cookie settings at any time. tps www. withersworldwide.comien-gbfousiness-modol-ofco-using-spaces-anc-isks 95