- Record-breaking revenue of USD 315 million marks an 11.2% increase YoY
- Adjusted EBITDA increased 12% YoY to USD 56 million
- Portfolio expanded by 26 Centres across Asia, with footprint in South Asia and Middle East doubling from the pre-pandemic period
The Executive Centre (TEC), the leading premium workspace provider that serves more than 47,000 Members in 34 cities across Asia-Pacific and the Middle East, announced its annual results today for fiscal year 2023. Achieving a record-breaking revenue of USD 315 million representing a 11.2% YoY growth, these exceptional results come on the back of a series of strategic expansions and TEC’s consistency in delivering unparalleled workspace solutions and service to its customers.
TEC’s focus on the high growth regions of Greater China, South Asia and the Middle East has been a cornerstone of the company’s success. In 2023, Greater China accounted for 47% of TEC’s total revenue while South Asia and the Middle East collectively contributed 22%, reflecting robust demand for premium flexible workspaces in these markets. In terms of adjusted EBITDA, TEC witnessed a healthy YoY increase of 12%, reaching USD 56 million. Greater China, with South Asia and the Middle East collectively, were also the most significant contributors at 37% and 34% respectively. In terms of contribution by city, Singapore emerged at the top, contributing 14% to overall adjusted EBITDA.
In 2023, TEC expanded its footprint exponentially with an addition of 26 new Centres across its network. Driven by strong client demand, South Asia and the Middle East saw the most significant growth with 12 new Centre openings, effectively doubling TEC’s footprint in the region since the pre-pandemic period. There were also new Centres opening in Mainland China, North Asia, Southeast Asia and Australia, spearheaded by high demand and TEC’s commitment to understanding and servicing the unique needs of local businesses.
TEC maintained an impressive global average occupancy rate of 88% across its network in 2023, reflecting strong customer satisfaction and the growing trend towards flexible workspaces globally.
Central to TEC’s success is also its agility in adapting to the evolving needs of the modern economy and workforce. A notable highlight of the year was the growth of the Coworking & Virtual Office segment, which saw a YoY revenue increase of 15% globally. This was a result of significant growth from key markets of Southeast Asia and the Middle East with YoY increases of 35% and 37% respectively. With a comprehensive inhouse suite of professional business and operations support, the Coworking & Virtual Office offering empowers business owners and entrepreneurs to enter new markets and scale rapidly without the need to commit long-term investments in inflexible office infrastructure.
Diving into data on revenue by service, TEC’s insights revealed an uptrend in the use of physical meeting and event spaces. The segment saw a global growth rate of 39% YoY, with high levels of usage in Hong Kong, and cities such as Singapore and Tokyo. In terms of markets, notable growth rates were recorded in Greater China, Southeast Asia, and the Middle East, achieving YoY increases of 55%, 57% and 65% respectively, pointing to a resurgence of in-person collaboration and the importance of continued availability of flexible event spaces and solutions for businesses to fulfil networking and operational needs.
TEC Founder and CEO, Paul Salnikow, said: “Our unwavering commitment to service excellence and our ability to anticipate market trends have allowed us to not only meet but exceed our goals amidst a rapidly changing global business environment. We are excited to continue on this trajectory, fostering innovation and expanding our presence strategically to support our clients’ growth and success.”
With its strong financial results and a proven business model, The Executive Centre is poised to maintain its leadership in the premium workspace sector as it celebrates 30 years of excellence this year. TEC remains committed to its mission of providing exceptional service and facilities to its global members as it looks to the future with a clear vision for continued expansion and success.
About The Executive Centre
The Executive Centre (TEC) is Asia’s premium flexible workspace provider, opened its doors in Hong Kong in 1994 and today boasts over 200+ Centres in 34 cities and 15 markets. It is the third largest serviced office business in Asia.
The Executive Centre caters to ambitious professionals and industry leaders looking for more than just an office space – they are looking for a place for their organisation to thrive. TEC has cultivated an environment designed for success with a global network spanning Greater China, Southeast Asia, North Asia, South Asia, the Middle East, and Australia, with sights to go further and grow faster. Each Executive Centre offers a prestigious address with the advanced infrastructure to pre-empt, meet, and exceed the needs of its Members. Walking with Members through every milestone and achievement, The Executive Centre empowers ambitious professionals and organisations to succeed.
Privately owned and headquartered in Hong Kong, TEC provides first class Private and Shared Workspaces, Business Concierge Services, and Meeting & Events facilities to suit any business’ needs.
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