HONG KONG • WeWork Cos, the co-working space company that’s among the world’s most valuable startups, is in advanced talks to rent a building in Hong Kong’s popular nightlife district near the city’s business centre, according to people familiar with the matter.

The New York-based firm is seeking to rent Hotel LKF by Rhombus on Wyndham Street, said the people, who asked not to be identified because the information hasn’t been publicly disclosed.

The boutique hotel, located in the Lan Kwai Fong district that’s known for its bars and nightclubs, closed down on July 1 and will be converted into an office building by the middle of next year, the owner Peterson Group said in June.

WeWork’s expansion in the world’s priciest property market comes as soaring office rents have pushed some financial firms and hedge funds out of the financial district. Demand for flexible and shared offices is surging in Asia, with the area taken up by such work spaces in Hong Kong’s central business district expected to double this year to 250,000 sq ft, according to property broker Colliers International. Flexible work spaces accounted for about 
9% of the office space in the city’s financial district as of 2016, Colliers said.

Spokeswomen at Peterson Group and WeWork declined to comment. The agreement isn’t final and negotiations may still fall through, one of the people said.

WeWork runs more than 20 office projects across Asia. — Bloomberg