High-End Coworking Provider NeueHouse Raises $30M, Hires New CEO
Members-only and often star-studded coworking provider NeueHouse has raised $30M from private investors to kick-start its expansion at a time when the coworking sector is growing increasingly competitive.
Investors included InterActiveCorp. and Expedia Chairman and Senior Executive Barry Diller, who also made an $8M bet on the company last year.
Founded in 2013, NeueHouse has two locations in New York City and Los Angeles, with more than 1,500 exclusive members and fees starting at $900/month, the Wall Street Journal reports. In addition to the cash injection, private equity veteran Josh Wyatt was recently named the new NeueHouse CEO. Wyatt also co-founded London boutique hotel and hostel company Generator Hostels & Hotels.
NeueHouse provides luxury workspace to exclusive members, in addition to hosting events for celebrity guest speakers and film screenings. Recently the NeueHouse Manhattan location at 110 East 25th St. hosted a Netflix Emmy after-party, and the company plans to host GQ’s Man of the Year ceremony at its Hollywood site in December.
Around the time of its inception, NeueHouse planned to expand its footprint to Washington, D.C., Shanghai and other major metros, but the plan never gained traction, according to the Journal.
With the recent capital infusion, the company will open two new Los Angeles locations next year in downtown LA and in Venice. The company also plans to bring smaller sites, roughly 25K SF or so, to secondary markets like Austin, Texas, and Nashville, Tennessee, in the future, according to Wyatt. Its current locations average roughly 70K SF.
As new shared-office concepts spring up across the globe at a rapid pace, landlords are re-evaluating their services to get in on the action. Office owner and operator Tishman Speyer created its own flexible workspace concept, called Studio, this fall, with plans to launch the brand in six global markets. It debuted its 35K SF Rockefeller Center Studio space at 600 Fifth Ave. in November.