Israeli hotel chain Fattal Holdings 1998 Ltd. (TASE: FTAL) today launched Rooms, a shared workspace venture combined with hotels (workspitality). The idea is being implemented in Amot House adjacent to Fattal's NYX hotel in Tel Aviv. Fattal rented two floors in Amot House for the venture - the fourth and 11th floors, with 1,300 square meters in total space - and has divided them into 50 offices and workspaces and 174 tables and work stations.
The interface to the nearby hotel is expressed in the sharing of the hotel's facilities, including the business lounge, fitness room, lobby and roof for events, room service, and even a special price of NIS 300 a night for hotel rooms for renters of space on the premises. Symbolically, Fattal's first offices were located in the building in the late 1990s.
Pricing is according to use (daily or monthly) and the size of the rented space: NIS 1,100 per month for a "hot" station in the lobby (as an alternative for workers in cafes), NIS 1,500 for a permanent station in the open space, private offices starting at NIS 3,400 per month, NIS 4,200 for two stations, NIS 5,100 for three stations, and 12,600 for six stations. Another option incudes breakfast at the hotel, and there are additional options.
Rooms CEO Nadav Fattal told "Globes," "In contrast to the past, when hotels refused to allow residents to come in, today's trend is in the opposite direction. The aim is to create an interaction between the local community and the guests."
Nadav Fattal says that there is a rising trend in workspaces. "We're following WeWork's operations and the need for a change in workplaces. For example, with the reduction in the space allocated for each employee; a changing geographic need, such as an office located in Netanya that rents a workspace for employees who prefer working from Tel Aviv, startups or entrepreneurs who don't want to rent offices before establishing themselves; and the desire to create a pleasant and comfortable work environment that you can't always get from an office.
"The use of the hotel facilities, which are usually unused by guests during the day, constitutes optimization of real estate. On the other hand, we are also creating synergy with personnel, such as reception clerks."
Figures displayed by Nadav Fattal show that the worldwide number of employees in shared spaces, which was 500,000 in 2015, is projected to reach 3.1 million this year and 5.1 million by 2025. The number of shared offices is growing accordingly: 7,800 spaces in 2015 and 21,300 in 2019, projected to reach 30,430 in 2025.
The most prominent players in the sector are Breather (0.7%), WeWork (1.7%), and Regus (11%). Most of the market is dominated by other players. Nadav Fattal cites the number of employees working outside the office, which grew from 9% in 1995 to 37% in 2015.
Fattal's next venture is scheduled to open in the Ra'anana industrial zone on a 4,000-square meter site with 500 work stations. Additional ventures will be opened in Petah Tikva and Holon; these are not next to hotels. Fattal, which operates in 19 European countries, plans to replicate the venture overseas, with the first step probably taking place in Germany.
Published by Globes, Israel business news - en.globes.co.il - on July 15, 2019
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