Updated 8 minutes ago on . Most recent reply
Sonder is OUT!
The biggest Airbnb player just filed chapter 7 bankruptcy. Nearly 10,000 listing closed their doors overnight. The 2.2 billion dollar behemoth that has been giving so many Airbnb horror stories is gone.
I said this a few times about how Airbnb is after people who are using off-platform and multi platform strategy. Apparently Airbnb’s effort was enough to put the biggest player out of business.
I think a big change is coming to the short term rental industry. Many hosts should really think about their business strategy and understand where Airbnb wants hosts to go.
Let me know what you guys think! It is major news to the industry!
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- Property Manager
- Orlando Kissimmee, Davenport
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BP is primarily a real estate investing forum and arbitrage isn't RE investing so I doubt many here will mourn over this. I'm sure it is much bigger news in facebook arbitrage groups or coaching programs etc.
It's not surprising to me at all that a big arbitrage company went under. Margins are tighter, rates are up, it's a far less enticing business model now. Property owners are hanging on because they're still getting debt paydown, tax advantages, appreciation, etc that arbitragers are missing out on.
Additionally, the best play right now in STR is to invest into the property to operate in the higher end of the market rather than the middle (where saturation is crushing people), and that doesn't really make sense for arbitrage as you don't want to invest into improving a property that you don't own.
On the bright side, it sounds like 10,000 arbitrage landlords just became available for folks running that hustle. But not really what people on this forum are involved in.
- Ryan Moyer
