IWG ticks up 4% in first quarter

Global flex operator, International Workplace Group (IWG), has reported a 4% increase in first-quarter group revenue, a trend fuelled by a bout of accelerated growth across its managed and franchised network. Here’s everything you need to know…

IWG, the flex giant behind renowned brands - Regus, Spaces and HQ, has lifted first-quarter revenue of $958m (£708m) for the three months to 31 March 2026, up 4% from $924m (£682.4) a year earlier, with total system-wide revenue climbing 9% to $1.17bn (£947m). 

The group reported that its network expansion had accelerated over the quarter, with openings rising to 222 from 165 the previous year, while new signings surged to 382 from 224 compared with the same period the year before. The biggest boost came from IWG’s managed and franchised arm, which saw a whopping 70% surge in fee income to $39m (£28.7m). Additionally, recurring management fee income surged 80% to $16m, as numerous previously signed sites opened and came into full operation.

The operator continues to position its model as a leading option for landlords and partners, as it navigates a more volatile economic environment. By the end of the quarter, it had 336,000 managed rooms up and running, with another 231,000 in development. IWG predicted that its managed and franchised wing could eventually be worth over $1.9bn (£1.5bn) in annual system revenue, once all planned spaces were set into motion.

Revenue per available room in the company-operated portfolio climbed 6% year on year to $389m, even as overall revenue edged up 2% to $906m (£670m). Meanwhile, system-wide RevPAR slipped 2% to $348. The operator traced this drop to the headwind of recently opened, still embryonic, sites. Additionally, net financial debt surged to $858m by the end of March 2026, up from $715m at the end of last year. 

Even amid a choppy geopolitical and economic backdrop, the operator stated that enterprise customer enquiries were on the up, with sales increasing steadily and pricing holding firm. IWG also shared that they will be stepping up efforts to cut costs onwards throughout the next quarter.

CEO of International Workplace Group, Mark Dixon commented: “Potential customers are requiring more flexibility in their real estate strategy to address the uncertainty arising from the impact of conflicts and the growing influence of Al. This is resulting in record levels of enterprise customer enquiries, as our coverage and network enable us to provide unique, flexible, global solutions.”

He adds, "Signings and openings continue to grow, allowing the flywheel of our business model to deliver greater cashflow while requiring less capital to grow than historically. This combination has enabled a return of over $230m to shareholders since our Investor Day, in New York in December 2023, as we continue our journey of capital returns."

Noting an increasing demand for flexible workspace, IWG continues to adapt in an industry impacted by economic volatility and the growing popularity of artificial intelligence, with enterprise enquiries reaching record levels and its global network supporting increased signings and openings.

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