EC01: Why WeWork Goes Bankrupt, How Hostels Get Inspired By Coliving, And Whether Affordability Is Possible.

Welcome to the first edition of Everything Coliving: your weekly summary of coliving news, updates, announcements, market analysis, events and, well, everything coliving!

The big news first: WeWork has declared bankruptcy. This is certainly a major headline, as the company, once valued at $47 billion, has faced extreme hardship over the last few years. One of its most significant internal challenges is the high liabilities regarding future rental obligations and the inability to break free from these contracts, even at unprofitable locations. WeWork states, “The Company enters into a Restructuring Support Agreement with strong support from key financial stakeholders to drastically reduce its existing funded debt.” It is important to note that only the US/Canada entities have filed for bankruptcy, which may be the most efficient method to maintain services while managing delayed rental payments. More information on this is available directly from WeWork.

A new coliving directory has emerged, specifically designed for digital nomads. The new platform, Coliving Compass, launched by coliving consultant Leah Zeliak among others, lists coliving spaces targeting digital nomads for week-to-month-long stays. The number of digital nomads—and more importantly, remote workers—is increasing rapidly, with coliving spaces optimized for a nomadic work-life balance being in high demand. New coliving spaces for nomads are emerging every day. So far, no booking platform had managed to position itself within this market - but that changed.

Coliving developments continue amidst habitual hustle and bustle. Whether it's hundreds of units in Miamiopening next year under the name of i5 Wynwood or Halcyon Development Partners (Halcyon) in partnership with JRL Group in Woking (UK) with a 329-unit project, coliving developers keep releasing project announcements. Note that the term coliving has been appropriated by housing solutions that often do not actively promote communal engagement, which is harming the overall brand of coliving. However, not all developments are fortunate: some coliving developments face rejection by municipalities.

Sustainability, in terms of construction materials and methodology, is becoming more visible in the coliving scene. Developers are emphasizing when their development exceeds standards while others, like Topete colivingin Spain, are working on a carbon-neutral 32-unit development made of timber. Artof.Co has recently published its highly recommended "Coliving’s Green Blueprint: A Sustainable Housing Development Guide" on this subject.

Artof.Co will be holding an online masterclass on coliving concept creation, branding, and positioning. Join other coliving professionals in learning how to create and refine coliving concepts. On November 21st at 5pm CET, we will explore trends in branding and positioning, pricing models, selling points, target audiences, and marketing strategies through current coliving companies. Attendees will leave the webinar inspired, with ideas and best practices to implement in their own projects.

Hostels are creating offers inspired by coliving. While over the last two years, there has been a trend of coliving operators increasingly offering short-stay options to balance their offerings, a counter-trend has also emerged. Some hostels, like Tribe in Mumbai, see the benefit of having long-term residents—less turnover, fewer headaches, and less fluctuation—and have developed monthly pricing options. Others, such as Selinaor Destination Hostels, are offering special passes for mid-term (one-month) guests, including the flexibility to travel between spaces. Our view is straightforward: the short-term and long-term will continue to blend.

In this market, affordability seems impossible—or is it? Chris Robért Lange investigates why the trinity of sustainability, affordability, and community is so challenging to achieve. His new micro-series delves into why most serviced living concepts fail to deliver on at least one pillar. We highly encourage you to read Part One: "How to Achieve Affordability?"

💰 Struggling with the financial side of coliving? You might find Financial Planning and Unit Economics in Coliving particularly useful for managing costs and maintaining sustainability.

We hope we enjoyed this edition. Your feedback is welcome.

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The journey continues! 🚀 Next up, learn all about coliving’s growth in EC02: New Expansion Plans. Don’t forget to check out EC03: Joint Ventures & Housing Summit and EC04: Coliving Financial Case Study for more on what’s shaping the future!