Over the past decade, co-working spaces have emerged as one of the most significant disruptions in the traditional office market. Instead of long-term office leases and fixed workspaces, companies and individuals increasingly seek flexible environments that can adapt to changing work patterns. Co-working spaces offer shared infrastructure, professional services and community-focused environments that allow businesses to scale workspace requirements up or down as needed.
At the same time, the hospitality industry has been undergoing its own transformation. Hotels are no longer seen purely as places to sleep, but as lifestyle hubs offering workspaces, meeting areas, social environments and community interaction. The convergence between these trends has created an important new intersection between hospitality and workspace design.
For hotel developers and investors, co-working spaces represent an opportunity to activate underutilised areas, diversify revenue streams and connect more directly with the local business community. In many urban developments, hotels are now integrated with flexible workspaces, serviced apartments and lifestyle amenities to create mixed-use hospitality environments that serve both travellers and local professionals.
This page explains how co-working spaces operate, why they fit naturally alongside hotel development, and how developers and operators are increasingly incorporating flexible work environments into hospitality projects.
- What Are Co-Working Spaces?
- The Rise of Flexible Work
- Why Co-Working Fits Naturally with Hotels
- Hotel Use Cases for Co-Working Spaces
- Leading Co-Working Brands
- Co-Working Partnerships with Hotels
- Hotel Brands Developing Co-Working Concepts
- Workspitality: When Hospitality Becomes a Work Environment
- Financial Considerations for Hotel Developers
- Co-Working and the Digital Nomad Economy
- The Future of Work–Hospitality Hybrids
- When Should Hotel Developers Consider Co-Working?
- The Convergence of Work and Hospitality
What Are Co-Working Spaces?
Co-working spaces are shared workplaces that provide flexible access to desks, offices and meeting facilities through membership-based arrangements. Unlike traditional offices, which typically require long leases and fixed space allocations, co-working environments allow users to access workspace on flexible terms ranging from daily passes to monthly memberships.
Most co-working facilities combine several types of work environments within a single location. These may include open desk areas, dedicated desks, private offices, meeting rooms, event spaces and informal collaboration areas. Many also provide shared amenities such as high-speed internet connectivity, printing services, cafés, lounge areas and networking events.
The concept is often described as “workspace as a service.” Instead of leasing office space and managing it independently, users gain access to a professionally operated work environment that includes infrastructure, services and community programming. This model has strong parallels with hospitality operations. In both sectors, users are not simply renting space; they are purchasing access to a managed environment that combines physical facilities with services such as reception, cleaning, connectivity, food and beverage, and social interaction.
The Rise of Flexible Work
The rapid expansion of co-working spaces has been driven by broader changes in how people work. The growth of startups, freelance professionals and technology companies has increased demand for flexible workplaces that can accommodate fluctuating team sizes and changing project requirements.
Corporate work patterns have also evolved significantly. Many organisations now operate hybrid work models in which employees divide their time between home, office and other locations. As a result, companies increasingly prefer flexible office arrangements that allow them to maintain professional work environments without committing to large, long-term office leases.
The global pandemic accelerated this shift. Remote working became widespread, and many companies began rethinking the role of traditional offices. In many cities, co-working spaces have become an important component of this new workplace ecosystem, offering professional environments that combine flexibility with social interaction.
In this respect, the co-working sector behaves more like hospitality than traditional office real estate. Users typically commit to short-term memberships rather than long leases, and the quality of the environment, services, and community experience often determines success.
Why Co-Working Fits Naturally with Hotels
Hotels and co-working spaces share many operational characteristics. Both sectors revolve around providing flexible access to space combined with services that support the user experience. This overlap makes the integration of co-working facilities within hotel environments a natural development.
Hotels already operate many of the functions required for flexible workspace environments. Reception services, housekeeping, security, food and beverage outlets, meeting rooms and high-speed connectivity are standard elements of most hotel operations. As a result, hotels are often well-positioned to incorporate co-working facilities without requiring entirely new operational structures.
The similarities between the two sectors can be illustrated through a simple comparison.
| Hotels | Co-Working Spaces |
|---|---|
| Reception and concierge services | Front desk and membership services |
| Housekeeping and maintenance | Cleaning and facility management |
| Restaurants, cafés and bars | Coffee bars and communal lounges |
| Meeting rooms and conference facilities | Meeting rooms and event spaces |
| Guest services and hospitality | Community management and events |
| High-speed connectivity | High-speed connectivity |
Because of these similarities, co-working spaces can often be integrated into hotel developments with relatively modest modifications to existing infrastructure.
In addition, hotels benefit from increased daytime utilisation when flexible workspaces are introduced. Traditional hotels often experience lower activity levels during daytime hours, particularly in leisure destinations. Co-working facilities can attract local professionals and entrepreneurs, bringing additional activity and revenue during periods when guest usage is lower.
Hotel Use Cases for Co-Working Spaces
The integration of co-working environments within hotels can take several different forms depending on the scale of the property and the nature of the surrounding market. In practice, three common models have emerged.
Lobby Co-Working Concepts
Many lifestyle and urban hotels now design their lobby areas to function as informal workspaces during the day. Comfortable seating, strong internet connectivity, accessible power outlets and integrated cafés create environments that appeal to both hotel guests and local professionals.
In this model, the lobby effectively becomes a hybrid social and work environment. Guests may use the space to work between meetings, while local residents may visit the café or lounge area to work informally for several hours. Some hotels also introduce small meeting rooms or semi-private work pods to support short business meetings.
This approach allows hotels to activate large public areas without creating a separate co-working operation. It also encourages additional food and beverage revenue from daytime visitors.
Dedicated Co-Working Facilities
A more structured approach involves creating a dedicated co-working facility within the hotel building. These facilities may operate on membership models similar to independent co-working operators and may include private offices, shared desks, meeting rooms and event spaces.
Hotels adopting this approach typically attract a mix of hotel guests, remote workers and local professionals who require flexible workspace. The co-working environment may also support corporate meetings, workshops and networking events.
This model can generate new revenue streams for hotels while also creating stronger links with the surrounding business community. Members may become regular users of the hotel’s restaurants, meeting facilities and event spaces, increasing overall property utilisation.
Hybrid Mixed-Use Developments
In larger developments, co-working spaces may form part of broader mixed-use hospitality projects that combine several operational real estate sectors. A single building or development may include hotels, serviced apartments, co-working facilities, retail outlets and leisure amenities.
These hybrid developments often target professionals who combine work and travel. Entrepreneurs, consultants, startup founders and digital nomads may use the workspace during the day while also benefiting from accommodation and lifestyle services within the same environment.
For developers, this mixed-use model can diversify revenue streams and create a more resilient property ecosystem that is less dependent on a single market segment.
Leading Co-Working Brands
The global co-working sector includes a mix of international networks and regional operators, ranging from large corporate workspace providers to community-driven entrepreneurial hubs. While the sector initially grew through rapid expansion by technology-oriented startups, it has gradually matured into a recognised segment of the operational real estate sector. Today, co-working operators typically focus on professionally managed workspace environments that combine flexible office infrastructure with hospitality-style services and community programming.
One of the most widely recognised brands is WeWork, which played a major role in popularising large-scale co-working networks during the 2010s. The company demonstrated how flexible workspace could be delivered across global portfolios with consistent design, shared amenities and community-focused programming in major cities. In recent years, WeWork has refocused on a more disciplined real estate model, streamlining its portfolio while continuing to operate a substantial international network of locations.
It is important to note, however, that the flexible workspace itself predates WeWork. Regus, part of International Workplace Group (IWG), was founded in 1989 and developed one of the earliest global networks of serviced offices. Today, IWG operates multiple flexible workspace brands, including Regus and Spaces, with thousands of locations worldwide. Alongside these global providers, European operators such as Mindspace and Impact Hub have also developed strong networks of design-led and community-oriented co-working environments across major cities.
Co-Working Partnerships with Hotels
When integrating co-working spaces into hotel developments, property owners typically choose between several operational structures depending on the scale of the project and the desired level of operational involvement.
One option is to lease the workspace to a specialised co-working operator. In this arrangement, the operator pays rent for the space and manages the co-working operation independently. This model reduces operational complexity for the hotel owner but may also limit upside potential.
Another approach is a management agreement in which the operator manages the co-working facility on behalf of the property owner. Under this structure, the owner retains greater exposure to operational performance while benefiting from the operator’s expertise.
Some projects use revenue-sharing arrangements in which both parties share in the membership income generated by the workspace. These agreements can align incentives between property owners and operators while distributing operational risk.
Finally, some hotel groups choose to develop their own in-house co-working concepts. Lifestyle hotel brands in particular have experimented with integrated workspace environments that operate as part of the overall hotel experience.
Hotel Brands Developing Co-Working Concepts
Several major hotel groups have begun integrating co-working spaces into their brand strategies, either by developing their own workspace concepts or by adapting hotel facilities to accommodate remote work and flexible office demand. These initiatives reflect the growing overlap between hospitality and workspace services, particularly as remote work and hybrid travel patterns become more common.
One of the most ambitious examples comes from Accor, which launched the WOJO co-working brand across its European portfolio. WOJO spaces can appear in several formats, including informal work-friendly areas within hotel lobbies, dedicated co-working zones inside hotels, and standalone co-working centres connected to the wider Accor ecosystem. The concept was designed to leverage the hospitality group’s existing assets, hotel locations, restaurants, meeting spaces and service teams, to create flexible working environments that blend productivity with hospitality services.
Other global hotel groups have taken slightly different approaches by adapting their existing properties to serve remote workers. Hilton introduced WorkSpaces by Hilton, allowing guests to reserve day-use rooms designed specifically for remote work, equipped with desk space, connectivity and access to hotel amenities. Similarly, Marriott International has introduced programs such as Workspace On Demand, which allow guests to book workspace in hotels by the hour or by the day. These initiatives reflect a broader trend in which hotels monetise daytime space and provide alternatives to traditional office environments.
Some hospitality concepts go even further by integrating co-working directly into their core brand proposition. For example, The Social Hub operates hybrid properties that combine hotels, student housing, co-working spaces, and community programming within a single building. Similarly, the Dutch hospitality concept Zoku combines long-stay accommodation with shared workspaces and community-oriented social spaces designed for internationally mobile professionals.
Taken together, these examples illustrate how hotel operators are experimenting with different models for integrating workspace into hospitality environments. Some focus on converting underutilised hotel areas into flexible workspaces, while others are designing entirely new hybrid hospitality concepts where accommodation, work and social spaces coexist within a single development.
Workspitality: When Hospitality Becomes a Work Environment
The convergence of hospitality and flexible workspace is sometimes described as “workspitality”, a model in which hotels provide environments that support both accommodation and productive work. Instead of separating office and hospitality functions, these developments integrate workspace, social areas and accommodation within a single operational ecosystem.
In a traditional hotel model, public areas such as lobbies, lounges and meeting rooms are primarily designed for short stays and guest circulation. In a workspitality model, these same spaces are designed to support longer daytime use, informal work activity and collaboration. This often involves changes to furniture layouts, connectivity infrastructure, lighting design and food and beverage offerings.
For example, a typical workspitality-oriented hotel environment might include comfortable seating with integrated power outlets, strong high-speed connectivity throughout public areas, small meeting pods for private calls, and cafés that function as informal work lounges during daytime hours. These spaces are designed to accommodate both hotel guests and local professionals who may use the hotel as a temporary workspace.
In this sense, workspitality does not necessarily require a fully structured co-working operation. Instead, it represents a broader design and operational philosophy in which hotels actively support the growing number of travellers who combine work, travel and lifestyle within the same environment.
| Traditional Hotel | Workspitality Model |
|---|---|
| Lobby used mainly for arrivals and waiting | Lobby designed as social and work environment |
| Meeting rooms used mainly for events | Meeting rooms used for both events and daily workspace |
| Public areas focused on short stays | Spaces designed for longer daytime use |
| Guests only | Guests + local professionals + remote workers |
| Accommodation-driven revenue | Accommodation + workspace + F&B + events |
Financial Considerations for Hotel Developers
From a development perspective, the financial case for integrating co-working spaces into hotel projects depends heavily on location and market demand. Flexible workspaces can provide additional revenue streams but also require careful planning to ensure operational viability.
Potential income sources include membership fees, private office rentals, meeting room bookings and event hosting. In addition, co-working users often generate secondary revenue through food and beverage spending within the hotel.
An important advantage is improved utilisation of space. Many hotel developments include large lobby areas, meeting facilities or underutilised spaces that can be activated through flexible workspace concepts. By attracting local users during daytime hours, co-working facilities can increase the overall economic productivity of the building.
However, developers must also consider operational complexity and market saturation risks. In cities where co-working supply has grown rapidly, demand may fluctuate depending on economic conditions. As a result, careful market analysis is required before allocating significant space to flexible workspace environments.
Co-Working and the Digital Nomad Economy
The growth of remote work has created a new category of travellers often described as digital nomads. These individuals combine professional work with long-term travel, frequently staying in destinations for weeks or months while maintaining remote employment or freelance businesses.
Co-working spaces play an important role in supporting this lifestyle. Reliable connectivity, professional work environments and opportunities for social interaction make flexible workspaces attractive to travellers who require productive working conditions outside their home countries.
Many destinations have begun actively promoting themselves as digital nomad hubs. Governments have introduced specialised visa programmes allowing remote workers to remain in a destination for extended periods while working for overseas employers.
Hotels that integrate co-working facilities may benefit from this trend by attracting longer-stay guests who value the ability to work productively in the same environment where they live.
The Future of Work–Hospitality Hybrids
The integration of co-working spaces into hospitality developments reflects a broader shift in how real estate sectors are evolving. Traditional boundaries between office, residential and hospitality property types are becoming less distinct as users seek environments that combine work, living and social interaction.
Developers increasingly design projects that integrate multiple operational real estate sectors within a single environment. Hotels may sit alongside serviced apartments, flexible workspaces, retail outlets and cultural venues, creating dynamic mixed-use communities.
These environments are particularly attractive in urban locations where professionals seek convenience and lifestyle integration. The ability to live, work and socialise within a single neighbourhood or building has become an important driver of real estate development strategies.
For the hospitality sector, this trend represents an expansion beyond traditional accommodation into broader lifestyle and community ecosystems.
When Should Hotel Developers Consider Co-Working?
While co-working integration can create significant opportunities, it is not suitable for every hotel project. The concept tends to work best in urban locations with strong entrepreneurial ecosystems, startup communities or large numbers of freelance professionals.
Lifestyle hotels, mixed-use developments and properties located in central business districts are particularly well suited to flexible workspace concepts. In these locations, co-working facilities can attract both travellers and local professionals, creating a diverse user base that supports year-round utilisation.
In contrast, purely leisure-focused resort destinations may not always generate sufficient demand for large dedicated co-working facilities. However, smaller flexible workspaces, shared work lounges or meeting studios can still play a valuable role. As remote work becomes more common, some resorts are using work-friendly environments to attract longer stays, digital nomads and off-season retreats, which can help extend occupancy into shoulder periods.
As with many hospitality innovations, success ultimately depends on understanding the local market and designing spaces that align with the needs of the surrounding community. In some destinations the opportunity lies in building a full co-working ecosystem, while in others it may simply involve creating comfortable and well-equipped environments where guests can combine work and travel.
The Convergence of Work and Hospitality
Co-working spaces represent one of the most visible examples of how traditional real estate sectors are evolving toward service-driven models. Like hotels, flexible workspace operators provide not only physical space but also an environment shaped by hospitality, community and professional support services.
For hotel developers and investors, the integration of co-working facilities offers an opportunity to activate underutilised areas, attract local users and participate in the growing flexible work economy. When carefully designed and properly aligned with market demand, co-working environments can strengthen the overall economic performance of hospitality developments.
As work patterns continue to evolve, the relationship between hospitality and workspace environments is likely to deepen further. The most successful developments in the coming years may increasingly combine accommodation, workspace and lifestyle experiences within a single integrated environment.
Further Resources:
Hospitality Net – Hybrid Spaces in Hospitality