Palo Alto-based co-working space HanaHaus is closing its original Silicon Valley location but keeping open its second outlet in the Lido Marina Village.
HanaHaus, owned by the German-based software company SAP, first opened the Palo Alto location in 2015. It is slated to close Oct. 1.
“While this location has been successful with a significant presence in the community, this decision reflects SAP’s evolving ecosystem strategy and its commitment to prioritizing key growth areas in our core business,” HanaHaus said in a blog post.
Julia Fargel, a spokesperson for SAP, did not expand on the blog post’s statement.
SAP was founded by Hasso Plattner, a part time resident of Laguna Beach who ranked No. 3 on the Business Journal’s annual list of the wealthiest with an estimated net worth of $12.5 billion.
“SAP’s decision to close the coworking space and cafe in HanaHaus Palo Alto reflects SAP’s commitment to prioritizing key growth areas in our core enterprise technology business,” Fargel said in an email to the Business Journal.
The Palo Alto closure will not impact the HanaHaus in Newport Beach, she added.
HanaHaus Newport Beach, which opened in 2019, is located at Lido Marina Village and offers open seating starting at $4 per hour and meeting rooms from $55 per hour. On-site amenities include an in-house café, full venue rentals, nursing rooms and bicycle racks.
Silicon Valley Roots
SAP opened HanaHaus in 2015 as a café and community workspace, with a mission to “foster a vibrant culture of technology innovation” and a place that “supports entrepreneurial energy.” The German software company launched HanaHaus inside of Varsity Theater, a 15,000-square-foot space on University Avenue in Palo Alto.
The coworking venue featured open workspaces, rooms for closed-door meetings, a large assembly area for 100 people and a tech desk for entrepreneurs and others to interact about the latest innovations.
Plattner is credited with creating the HanaHaus concept, but his company stated the co-working space would not carry the SAP branding despite being an extension of its ecosystem.
The HanaHaus website says the coworking space is “open to everyone,” including startups, students and freelancers.
Newport Beach Location
The Newport Beach location opened to the public in 2019.
SAP chose Newport Beach for its second location partly due to a collaborative relationship it has with UC Irvine but also because of the city’s location between Los Angeles and San Diego.
HanaHaus opened its Newport Beach location in a renovated midcentury building in Lido Marina Village, overlooking Newport Harbor.
