Co-living operators Habyt and Common have merged to form the Habyt Group, the largest global network in this sector.
BurdaPrincipal Investments (BPI), the growth investment arm of Hubert Burda Media, is invested through the previous merger between Habyt and Hmlet. BPI supports the risk diversification strategy behind the merger and sees great potential in the combined entity.
The companies Habyt and Common offer rental apartments, co-living options, and studios. These flexible living models are a direct response to the increasing mobility of people. The merger enables Habyt to enter the North American market increasing its global representation to three continents: Last year, European player Habyt merged with Hmlet, a BPI portfolio company, and was able to grow its business in the Asian market. With the current merger between Habyt and Common, the newly created international company operates 30,000 residential units, in 14 countries and 40 cities.
The merger between Habyt and Common results in a new trans-continental structure which offers a geographical advantage in terms of risk diversification.
“The merger enables synergies to be created across Asia, Europe and North America. The uniform digital solution enables cost savings and provides a platform for inter-company exchange. The joint technology platform provides many opportunities to further grow the co-living market in the future,” explains Christian Teichmann, CEO of BPI. „As an international growth investor, we are fully committed to this merger and see great potential in other M&A prospects across the markets.”
“Global demand for flexible co-living concepts has been very strong and stable in the past year and 2023 is already proving to be no different,” says Luca Bovone, CEO of Habyt. „This merger is an incredible stepping stone for Habyt to be able to tap into this demand at a global level. We can now leverage our technology and expertise across three continents, offering our members the opportunity to truly live anywhere with Habyt.“
Target for 2023: Profitability
Both Habyt and Common grew in 2022 and a similar development is expected for this year. The goal for 2023 is profitability. Habyt was founded by Luca Bovone, in Berlin, in 2017 and has been active to date in twelve countries and 24 cities. Other investors, aside from BPI, invested in the co-living operator are Vorwerk Ventures and Sequoia Capital. Common was founded in New York in 2015. The American operator is active in 12 cities and offers 7,000 types of accommodation in the form of Co-living, rental accommodation, and studios.
Founder and CEO of Habyt: Luca Bovone
With the merger, the Habyt Group can now leverage its offering across three continents