Berlin-based coliving company Habyt has acquired other coliving startup Quarters, marking the company’s third acquisition since its founding in 2017.
Now that Habyt has 4,000 rooms across five countries in Europe, it is clear that the industry is turning down the road of consolidation as a result of the pandemic.
“Coliving works at large scale, therefore consolidation is to be expected — especially in downturns of the market,” said Luca Bovone, CEO and founder of Habyt. “The deal marks the beginning of a real consolidation season for the coliving industry in general.”
Last year, Habyt acquired Madrid-based company Erasmo and Berlin startup GoLiving as it works to become the top coliving operator in Europe.
Quarters was one of the first coliving players in the world when it was founded in 2012. The company once had 3,000 operational units with 4,500 under development in the U.S., Germany and the Netherlands. However, the pandemic forced the company to close down its U.S. operations.
On January 15, the firm filed for bankruptcy and immediately began a mergers and acquisitions process.
Now, Habyt is the only coliving company that is focused on growing through M&A.
“The biggest issue for coliving businesses is supply,” said Ferdinand von Fumetti, cofounder and CFO at Quarters. “In a non-pandemic situation, there will always be demand for affordable housing in city centres, but on the supply side, it’s rare to find empty residential buildings that you can rent for a fair price.”