According to Fortune, Kong Wan Sing, the founder and CEO of Asia-Pacific co-working giant JustCo, says his business is fundamentally about hospitality, comparing it to hotels. The company, which started in Singapore in 2011, now operates 48 offices across the region and is expanding into Malaysia, India, and considering a return to mainland China after a 2022 exit. JustCo just launched in Ho Chi Minh City, its tenth Asian market. Kong notes that while flex-office penetration in Asia-Pacific has risen from under 4% to just over 5% in three years—still half the U.S./Europe level—he’s seeing a “surge” with much faster growth. The company has launched two new brands: “THE COLLECTIVE,” a luxury concept debuted in Tokyo in March with daily cleaning and premium services, and “the boring office,” a stripped-down, cheaper option launched in Singapore in July, with pricing varying by 20-30% from their classic offering.
Hospitality, not real estate
Here’s the thing: framing co-working as a hospitality play is smart. It shifts the conversation from selling square footage to selling an experience and a service. Kong’s point that people come “for the network, but also for the hospitality” gets at a core truth the industry sometimes forgets. It’s not just about a desk and Wi-Fi. It’s about feeling taken care of, having someone handle the visitor looking for you, and the overall environment. This mindset is probably what’s driving their new brand segmentation. “THE COLLECTIVE” is basically a hotel concierge for your workday, while “the boring office” is for companies that just want the shell. It’s a recognition that one size does not fit all, especially in a diverse region like Asia.
Asia’s flex-office boom
Kong’s excitement about Asia’s growth being “definitely much faster” than the West is the key takeaway. A penetration rate jumping from under 4% to over 5% in three years might not sound huge, but in the massive Asia-Pacific market, that’s a ton of new space. And being at half the level of mature markets suggests there’s a long runway. This surge is happening despite—or maybe because of—the global tug-of-war over return-to-office. Big corporates like Tencent and Moderna using JustCo for regional offices shows that even companies mandating office days are opting for flexibility in *where* that office is. They don’t want the long-term lease; they want the plug-and-play solution. So the battle over work style might actually be a tailwind for operators like JustCo.
Three tiers, one strategy
The three-brand strategy is a fascinating pivot. For a long time, co-working was somewhat monolithic: open plan, beer on tap, a certain vibe. JustCo is now explicitly segmenting the market. The luxury play in Japan makes sense—it’s a premium market—but launching a “boring office” is the real signal. That’s for the cost-conscious business that sees a flexible office as purely a utility. No frills, no coffee, just a roof and a desk. It’s a brutally honest product. This tiered approach lets them capture revenue from companies that want the white-glove service *and* from those who just need a cheap, flexible lease. It’s a hedge. If the economy tightens, “the boring office” might be their best seller. In a boom, THE COLLECTIVE could shine.
The future is flexible
So where does this leave the traditional office landlord? In a tricky spot. Kong’s background in traditional real estate (Mapletree) and his move into flex-space is a microcosm of the larger shift. The product is no longer the building; it’s the service within it. And with 60% of clients being multinationals, this isn’t just for freelancers and startups anymore. It’s core corporate infrastructure. The expansion plans into North Asia and the Middle East show he’s thinking globally, but the heart of the growth story remains Asia-Pacific. The region’s rapid economic development, combined with a cultural appreciation for service (hospitality!), might just be the perfect petri dish for this model to explode. The question is, can they scale the hospitality feel as fast as they scale the square footage?
