In An Era Of WeWork, Co-Working Space NeueHouse Sits Above The Fray

In today’s cluttered co-working landscape, it can be hard for companies to makes themselves heard over the din. Elevated co-working space NeueHouse wants to create an unparalleled experience for creatives through elevated programming and outstanding design.

NeueHouse describes itself as “a private cultural and collaborative space for prominent creatives, artists and entrepreneurs,” with current locations in Los Angeles and New York. In November, following an announcement of $30 million in funding, the company announced Josh Wyatt as its new CEO. Wyatt is a veteran of the hospitality industry, having co-founded Generator in 2007, a chain of culture-focused hostels targeted at millennials, before moving on to Equinox to head the fitness brand’s hotel developments in New York City.

Forbes interviewed Wyatt to talk about creativity, design, the gun threat incident at NeueHouse New York, and why he isn’t phased by his “800 pound gorilla” competitors like WeWork and Knotel in the co-working space. 

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Forbes: What is your background and perspective on the role of design in the physical retail and hospitality spaces?

Josh Wyatt: I don’t have a design background, but I have studied the [design] leaders and innovators in the hotel and restaurant space. What I found is that the people who were able to build truly innovative and disruptive companies were those who were able to build together multiple talents and skill-sets to make things happen.

If I ever wanted to be a global executive, I had to understand what design was all about, because that truly is the physical foundation which creates this emotional experience when someone walks in your hotel. [Design] leaves a profound effect on the customer, and it’s shocking to me that more executives in the space don’t understand how important it is. It’s allowed me to build some cool companies that have withstood the test of time.

One of the greatest compliments that I received from a mentor of mine was when he said, “You built Generator to last after you and the team left.” It really is a testimony to how great design can permanently impact a building and a customer base.

F: Why do you think so many other people fail to see the value of design?

JW: Design is a very difficult thing to quantify. When you’re running a large company that’s focused on financial metrics, which obviously most boards are, at times it is extremely difficult to get metrics [for design]. Therefore, when all cards are on the table, and when push comes to shove, often times a CEO will say, “Well, I have only so many arrows in the quiver–let me go with a strategy that will be accepted by the investor base.”

Ultimately, that leads to companies that get built and are somewhat successful. But I think as we enter into an increasing period of digital impact, where technology and the use of social media has dramatically impacted how people consume content and experiences, design is ever more important. The visual impact of everything is going to get more and more important.

F: How is NeueHouse going to implement technology to better serve its consumer base?

JW: We do believe as a company that the analog experience, the human connection, and the ability to have a deeply emotional connection with a physical space with other people in that space, is a significant competitive advantage for us. As such, we talk about technology as an enabler, but not as the defining moment of the experience at NeueHouse.

We have a very defined customer base, which is the creative class. This creative class is drawn to a front-end membership experience that is based around design, culture, knowledge, and community. We do not believe that they are fundamentally drawn to technology.

F: What are some examples of how NeueHouse is using this technology to supplement but not overwhelm members?

JW: The [mobile NeueHouse] app that we have is only available to NeueHouse members, and it facilitates everything that happens within the NeueHouse system, whether it’s booking a conference room [or] RSVPing for programming events. We view the app as a facilitator but not anything that is actually driving the happiness of customers.

Another example is how we collect and use data. A number of coworking companies are slicing data in order to try to attract customers, [but] we’re not sure that is the best way to go about things. We are very different from our peers. Where they are very much data driven, we are very much people driven.

F: What do you mean by the “slicing and dicing of data” from some of NeueHouse’s competitors?

Some of these companies, like Knotel, Wework, or Industrious, are using data tools to mine customer bases that are based on very specific geographic maps in each city, and that’s fine. We’re playing outside of that market. Those concepts are going to be incredibly successful, but we don’t compete in that space. We sit above the fray and provide highly elevated and aspirational products that are more about the people and less about in-your-face technology.

F: We’ve already talked about some of the bigger co-working players, but what about the other boutique competitors to NeueHouse like The Wing, Spring Place, and SoHo House? These companies also have an emphasis on the creative class and culture.

JW: I really do think we’re in a class of one here. If you look at the options when you walk into one of those spaces, it is very singular. It is an option to eat at a restaurant and crack a laptop and work. It is an option to come into only a workspace without a restaurant or programming. It’s an option to come into a social club that does not have a wider mission statement in terms of spreading knowledge and interaction.

NeueHouse is offering four to five big needs for members and guests when they step in. There’s an incredible, world-class workspace that allows people to function at the highest professional level. There are very interesting food and beverage offerings, where we’re using seasonal menus and [have] a commitment to healthy eating. Almost every night, we have world-class programming at scale. This is not a small talk with ten people in a conference room, like some others are doing. This is a 70 to 300 person, professionally-produced event that is bringing people from all disciplines. Behind all that, you have a system that is produced by the digital content team, churning out content and media similar to TED.

Nobody else is doing that under one roof. That’s why there will never be 500 NeueHouses taking over the world like an 800 hundred pound gorilla . We don’t have that aspiration. We have an aspiration to build this beautiful little boutique company where we can go into four or five other cities in North America and a couple over in Europe at some point.

F: Do you ever see NeueHouse expanding into hospitality by opening up a hotel or rooms for members to stay in?

JW: The broad answer is we absolutely see a future in which we are expanding in to the traditional hospitality sector. How and when we do that is the fundamental question. At present, our strategy is to likely partner with other on-brand boutique companies or individual properties to potentially sign a deal where NeueHouse either manages or leases space within those hotels. Would we ever actually go out and build NeueHouse branded hotel rooms above or next to the workspace? Maybe. But we’re much more excited about some of the talks we’re having right now with some very interesting boutique hotels and operators.

F: I want to talk a little bit about the scary incident that NeueHouse New York had a few months ago, when a screening for the R. Kelly documentary “Surviving R. Kelly” was evacuated following a gun threat. What was navigating that crisis as a CEO like, and what impact did the event have on you?

JW: That was probably the most defining event in my young tenure as CEO. When it first happened, the first initial gut reaction was, “Okay, this is a crisis.” About ten seconds later, as I looked into the mirror, I said to myself, “Actually, this is a defining moment for NeueHouse.”

We [doubled] down on defending the artists’ right to make a movie like that, and [defended] the women who courageously came forward with a strong voice. Nobody else had screened that movie yet. NeueHouse stepped up to the plate before anyone else did and supported something controversial.

Going forward, we have a significant, significant investment in programming. This is something that we not only talk about, but we put our resources where our mouth is. We really try to stand at the forefront of these cultural moments. You can’t put a spreadsheet behind this. We have a strong executive team that is willing to take risks.

F: Lastly, what advice would you give to the you from 10 years ago?

JW: Looking back on the last decade of my career, I’ve always tried to build interesting and provocative businesses that have a real impact on people’s lives. The difference between ten years ago and now is that I probably didn’t have the courage and conviction to stand up for my artistic vision. I didn’t have the confidence to make the case that design and art and creativity is actually a great driver of financial value for investors.

Coming into the NeueHouse situation, one of my key strategic initiatives is to double down on the creative side on supporting the artists. In the last six months, this company has now really become the strongest voice in North America in this creative programming space. [What changed for me] is having the courage and conviction to follow that creative path, and to have the strength to articulate to investors that this is the way to create a unique and non-copyable company.

This post first appeared on Forbes.com. To see the original, click here.