Regus
Encyclopedia
Regus plc is a multinational corporation
that provides serviced office accommodation in business centres worldwide. As of March 2011, it operates 1,100 business centres in 85 countries. The Company is listed on the London Stock Exchange
and is a constituent of the FTSE 250 Index
. Regus is incorporated in Saint Helier
, Jersey
, and is headquartered in Luxembourg City
, Luxembourg
.
, an English
entrepreneur
, Mark Dixon
, noted the lack of office space available to travelling business people; they were often forced to work from hotel
s. He identified a need for office space that was maintained, staffed, and available for companies to use on a flexible basis and went on to found his first business centre in Brussels
in Belgium
.
In 1994 Regus entered Latin America
with a center in São Paulo
and in 1999 it entered Asia
with its first center in Beijing
.
The Company completed a successful IPO
on the London Stock Exchange
in 2000.
In 2001 it acquired Stratis Business Centers, a U.S.-based network of franchised business centers, and expanded into the United States
market. Later in 2001 the Regus business center on the 93rd floor of South Tower at the World Trade Center
was destroyed during the 9/11 attacks
; five employees lost their lives. The company was criticized for a lack of response to the victims' families, though a Regus official said they had made "proactive outreach to each and every family of the team members who are missing."
In 2002 the Company sold a controlling stake (58%) of its cornerstone UK
business to Rex 2002 Limited, a company created by the private equity firm
Alchemy Partners
. This move raised £51 million for the company, which had been facing severe financial difficulties.
In 2003 Regus filed for Chapter 11
bankruptcy
protection for its US business, which had been struggling in the wake of the Dot-com bubble
. Less than a year later it took its US business out of Chapter 11 after restructuring, financed by its share of the profitable UK business.
The Company acquired HQ Global Workplaces, a global workplace provider based in the U.S. in 2004. The former headquarters of HQ in Addison, Texas became one of Regus' headquarters.
It re-acquired the Regus UK business in 2006 for £88 million, marking the end of a dramatic recovery from the Company's near collapse in 2002. The Company went on to acquire Laptop Lane, a chain of American airport business centers, later that year.
In 2006 the Company entered partnerships with Air France-KLM
and American Airlines
for preferred access for business travellers and in 2007 it entered a partnership with American Express
for preferred access for their Business Platinum cardholders.
In June 2008 Regus introduced Businessworld, a multi-level membership service which allows users flexible access to Regus services in any Regus location worldwide, taking advantage of the Company's international scale. It is aimed at clients who travel frequently.
Effective October 14, 2008, Regus Group plc became Regus plc. Regus plc was created as a holding company for Regus Group plc, in order to establish the Company's headquarters in Luxembourg and its registered office in Jersey. Both Luxembourg and Jersey are business-friendly offshore financial centre
s. The company had been headquartered in Chertsey
, Surrey
, England
and Addison
, Texas
, USA
.
Despite recording a net loss in the first half of 2010 due to the effects of the global financial crisis, Regus has maintained a policy of expansion, opening new business centers. The company has also renegotiated some leasing agreements with property owners in the UK to save money, warning owners that the vehicles holding the leases could go into administration; this has angered the British property industry, which notes that as a whole Regus is financially strong.
s, meeting rooms, and videoconferencing to clients on a contract basis. The Company operates in 85 countries with 1,100 business centers, making it the world's largest provider of outsourced workspace. Regus is also one of the sponsors of Fair Spend
.
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
that provides serviced office accommodation in business centres worldwide. As of March 2011, it operates 1,100 business centres in 85 countries. The Company is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
. Regus is incorporated in Saint Helier
Saint Helier
Saint Helier is one of the twelve parishes of Jersey, the largest of the Channel Islands in the English Channel. St. Helier has a population of about 28,000, roughly 31.2% of the total population of Jersey, and is the capital of the Island . The urban area of the parish of St...
, Jersey
Jersey
Jersey, officially the Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and...
, and is headquartered in Luxembourg City
Luxembourg (city)
The city of Luxembourg , also known as Luxembourg City , is a commune with city status, and the capital of the Grand Duchy of Luxembourg. It is located at the confluence of the Alzette and Pétrusse Rivers in southern Luxembourg...
, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
.
History
In 1989 while on a business trip to BrusselsBrussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, an English
English people
The English are a nation and ethnic group native to England, who speak English. The English identity is of early mediaeval origin, when they were known in Old English as the Anglecynn. England is now a country of the United Kingdom, and the majority of English people in England are British Citizens...
entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
, Mark Dixon
Mark Dixon (businessman)
Mark Dixon is an Essex born English businessman, best known as the founder of serviced office business Regus.-Biography:The son of a Ford car mechanic, Dixon was educated at Rainsford comprehensive school...
, noted the lack of office space available to travelling business people; they were often forced to work from hotel
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
s. He identified a need for office space that was maintained, staffed, and available for companies to use on a flexible basis and went on to found his first business centre in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
.
In 1994 Regus entered Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
with a center in São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
and in 1999 it entered Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
with its first center in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
.
The Company completed a successful IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 2000.
In 2001 it acquired Stratis Business Centers, a U.S.-based network of franchised business centers, and expanded into the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
market. Later in 2001 the Regus business center on the 93rd floor of South Tower at the World Trade Center
World Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
was destroyed during the 9/11 attacks
September 11, 2001 attacks
The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...
; five employees lost their lives. The company was criticized for a lack of response to the victims' families, though a Regus official said they had made "proactive outreach to each and every family of the team members who are missing."
In 2002 the Company sold a controlling stake (58%) of its cornerstone UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
business to Rex 2002 Limited, a company created by the private equity firm
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
Alchemy Partners
Alchemy Partners
Alchemy Partners is a British private equity firm, which specialises in leveraged management buyouts, management buy-ins and the provision of later stage development capital.Alchemy was founded in 1997 by Martin Bolland and Jon Moulton...
. This move raised £51 million for the company, which had been facing severe financial difficulties.
In 2003 Regus filed for Chapter 11
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
protection for its US business, which had been struggling in the wake of the Dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
. Less than a year later it took its US business out of Chapter 11 after restructuring, financed by its share of the profitable UK business.
The Company acquired HQ Global Workplaces, a global workplace provider based in the U.S. in 2004. The former headquarters of HQ in Addison, Texas became one of Regus' headquarters.
It re-acquired the Regus UK business in 2006 for £88 million, marking the end of a dramatic recovery from the Company's near collapse in 2002. The Company went on to acquire Laptop Lane, a chain of American airport business centers, later that year.
In 2006 the Company entered partnerships with Air France-KLM
Air France-KLM
Air France-KLM is a European airline holding company incorporated under French law with its headquarters at Paris-Charles de Gaulle Airport in Tremblay-en-France, Paris...
and American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
for preferred access for business travellers and in 2007 it entered a partnership with American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
for preferred access for their Business Platinum cardholders.
In June 2008 Regus introduced Businessworld, a multi-level membership service which allows users flexible access to Regus services in any Regus location worldwide, taking advantage of the Company's international scale. It is aimed at clients who travel frequently.
Effective October 14, 2008, Regus Group plc became Regus plc. Regus plc was created as a holding company for Regus Group plc, in order to establish the Company's headquarters in Luxembourg and its registered office in Jersey. Both Luxembourg and Jersey are business-friendly offshore financial centre
Offshore financial centre
An offshore financial centre , though not precisely defined, is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident offshore companies, and for the investment of offshore funds....
s. The company had been headquartered in Chertsey
Chertsey
Chertsey is a town in Surrey, England, on the River Thames and its tributary rivers such as the River Bourne. It can be accessed by road from junction 11 of the M25 London orbital motorway. It shares borders with Staines, Laleham, Shepperton, Addlestone, Woking, Thorpe and Egham...
, Surrey
Surrey
Surrey is a county in the South East of England and is one of the Home Counties. The county borders Greater London, Kent, East Sussex, West Sussex, Hampshire and Berkshire. The historic county town is Guildford. Surrey County Council sits at Kingston upon Thames, although this has been part of...
, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and Addison
Addison, Texas
Addison is a city in Dallas County, Texas . The population was 14,166 at the 2000 census, and 15,737 according to a 2009 estimate. Addison is a northern suburb of Dallas...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, USA
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Despite recording a net loss in the first half of 2010 due to the effects of the global financial crisis, Regus has maintained a policy of expansion, opening new business centers. The company has also renegotiated some leasing agreements with property owners in the UK to save money, warning owners that the vehicles holding the leases could go into administration; this has angered the British property industry, which notes that as a whole Regus is financially strong.
Operations and services
Regus and its brands (HQ and Regus Express) provide serviced offices, virtual officeVirtual office
A virtual office is a combination of off-site live communication and address services that allow users to reduce traditional office costs while maintaining business professionalism...
s, meeting rooms, and videoconferencing to clients on a contract basis. The Company operates in 85 countries with 1,100 business centers, making it the world's largest provider of outsourced workspace. Regus is also one of the sponsors of Fair Spend
Fair Spend
Fair Spend are a non profit organisation founded in 2010 which lobbies for students in the UK. The organisation advocates for concessions for students in state funded education, particularly in regards to products and services such as study material, transport and other miscellaneous costs...
.
Senior management
As the company's CEO, Mark Dixon's total annual compensation amounts to £591,000 of which £522,800 is base salary and £68,200 are benefits. No annual bonuses were awarded to Dixon or Regus employees in 2009 due to 'current market conditions'.External links
- Official site
- Salter, Chuck. "Office of the Future", Fast Company, Issue 33, March 2000, page 272.
- Holusha, John. "Commercial Property/Business Centers; Modern Office for Rent: Daily Rates Available", The New York Times, May 20, 2001.