Can you elaborate on how FLOK's diverse range of accommodations enhances the guest experience?
At FLOK, we aim to be the go-to hospitality brand for modern travellers, whether they're seeking a short stay or a long-term residence, we focus on serving their needs. Our portfolio includes boutique hotels, serviced apartments, and co-living spaces, each designed to offer innovative design, seamless service, and authentic local experiences.We cater to today’s dynamic and fast-paced environment, providing flexible accommodation options that enhance the travel experience, no matter the purpose or the location of the stay.
Tell us about your business model and the operating structures you focus on.
At FLOK, we focus on an asset-light approach, utilizing long-term leases and management agreements. These agreements, typically spanning over 15 years, provide property owners with stable income while allowing us to secure prime locations.
Our diverse range of products allows us to tailor our approach to meet investors' risk appetites and adhere to potential zoning regulations. This strategy gives us operational flexibility to target various projects, from single floors in mixed-use properties to full-asset management for large-scale developments, aligning with our tech-enabled, efficient business model.
Our vision towards the guests to serve them for any occasion, and any purpose of their stay is what gives investors and property partners flexibility to have exposure to multiple assets within alternative accommodation segment, while working with one reliable operator.
You developed your own technology. What made you decide to take that route?
Although there are plenty of out-the-box solutions, we couldn’t find one that would cover all our needs, at least not as precisely as we would like. This approach of creating our entire tech stack from scratch is giving us a significant advantage for future development as we can customise the software for management of different property types, scale easily and incorporate new solutions and technologies more quickly.
Our approach is ensuring a seamless and efficient experience for both guests and staff. We have a full-stack software incorporating all key aspects of operations, management, and guest experience.
You have 40% lower capital and operational costs compared to traditional hospitality brands. How do you achieve this?
Traditional hotels often have higher overheads due to extensive service offerings, larger staff requirements, and significant capital expenditures to maintain their brand standards. By contrast, FLOK focuses on efficiency and smart technology to streamline operations. We minimise unnecessary overheads while maintaining a high standard of service that caters to younger, tech-savvy guests who value seamless experiences over extensive amenities.
How are you able to achieve 2.3 times higher yields compared to traditional renting?
Traditional renting models often lack flexibility and the ability to maximize revenue based on real-time demand. Our higher yields are primarily driven by our optimised use of space and dynamic pricing enabled by our proprietary technology. By continuously analysing market trends and adjusting our pricing, we ensure that we are capturing maximum value for our properties. Additionally, our streamlined operations reduce overhead costs, allowing us to offer competitive rates to guests while maintaining high profitability.
How do you find new real estate?
We have a dedicated team that meticulously analyses location demand, local attractions, and the competitive landscape to scout prime real estate opportunities in areas with the highest potential for success.
We focus on prime locations within urban areas that offer easy access to local amenities, transportation, and cultural attractions.
While we increasingly engage in purpose-built and converted projects, we strive to be key players in the local culture and community. This approach not only provides a unique guest experience but also reflects our roots and approach to hospitality that transformed the way people think about travelling and experiencing a place.
We leverage our existing real estate partnerships in the markets where we are already present while seeking new real estate partners and investors in new markets.
Our emphasis is on building long-term partnerships over focusing on single opportunities, and we look for partners who are like us: dedicated to the goal of revolutionising hospitality and living landscapes.
Are you doing new builds or conversions?
We are open to both new builds and conversions, depending on the potential of the property and its alignment with our brand proposition. Conversions of historical buildings often add unique charm and character to our portfolio, becoming flagship properties with deep stories behind them. However, new builds are often easier and help us scale faster.
Our typical projects include aparthotel makeovers, hotel conversions, office conversions, and new-build developments, all designed to maximize the potential of each property and align with our strategic goals.
Do you have any challenges in terms of dealing with local government regulations?
Navigating local government regulations, planning permits, and zoning laws across various markets can be challenging. However, at FLOK, our diverse range of products—from boutique hotels to serviced apartments and co-living spaces—provides the flexibility to adapt to different zoning regulations.
This adaptability ensures compliance and offers our real estate partners and investors versatile investment options. They can tailor projects to local zoning regulations, finding the most suitable and profitable opportunities. FLOK’s expertise in navigating these complex regulatory environments makes us the ideal partner for achieving success in varied markets.
Tell us about your co-living accommodation. How does it work?
Our co-living spaces are strategically developed in markets with a strong demand for flexible, community-oriented living solutions, typically urban centres with a high density of young professionals and expats facing a shortage of affordable housing.
They provide a sophisticated blend of private living quarters and shared communal areas, meticulously designed to foster a sense of community and collaboration. Each resident enjoys a fully furnished private room or apartment, ensuring personal comfort and privacy, while also having access to shared amenities such as kitchens, lounges, and workspaces. This arrangement is not just about sharing space; it's about creating environments that promote social interaction, networking, and mutual support among like-minded individuals.
The social aspect of ESG is sometimes overlooked but you are very active in this area. How are you serving your local communities?
While energy-efficient systems and waste reduction programs are becoming standard ESG practices, we strive to contribute more through inspiring social initiatives. Some of our standout efforts include collaborations with refugee and art associations in Brussels.
One of the most pressing challenges in the industry is the underutilisation of vast amounts of real estate, which not only represents missed economic opportunities but also contributes to urban decay and inefficiency. We decided to change that, and while awaiting the necessary permits to begin construction on our future hotels, we put spaces to good use by partnering with two non-governmental organisations.
We are proud to work with "La voix des sans papiers" (The Voice of the Undocumented), an association that helps undocumented people from Africa integrate into society. Together with building owners, we provide rooms, while the association assists with administrative procedures, finding work, and schooling for their children. More than 50 people have called our hotels home, and we are proud to give back to society.
Additionally, we collaborate with art associations to host events and provide artists with a space to create. By integrating these ESG initiatives into our operations, we aim to make a lasting, positive impact on the communities we serve while delivering exceptional experiences to our guests.
Tell us about your current pipeline and near-term plans.
Over the past 18 months, we have successfully completed two boutique hotel projects in Zagreb, and this year we are opening our third hotel in Zagreb. We are also expanding our presence on the Croatian coast with two new cities in our offer. Our portfolio in Brussels is also growing with two new flagship properties under construction that will be a mix of co-living rooms and hotel rooms. Both projects are due to open in Q4 2025.
In the coming year, we plan to further expand our footprint with new projects across all the markets where we operate. We are also looking to expand our network of real estate partners, and explore opportunities in other European destinations, with a focus on properties that are in line with our brand and value proposition.
About FLOK
FLOK’s wide range of products is adapted for different markets, groups of guests, and asset types, but all of FLOK’s properties are inspired by the vision of placing the guest at the centre of all decisions, from materials choice to room size.
FLOK provides investors and property partners with a resilient, tech-enabled business model and efficient space utilisation, adapted for various products from boutique hotels to co-living spaces. Additionally, FLOK can tailor its offerings for a range of projects, from single floors in residential or mixed-use properties to full-asset management for large-scale projects.
This flexibility allows real estate partners and investors to adapt each project to the recognised market needs, zoning regulations, and capital investment requirements. It enables FLOK’s esteemed partners to diversify within the alternative asset category while working with one reliable operator that covers the full investment cycle.