This year has been an eventful one for short-term rentals around the world: The boom-bust saga and seeming unending fights about new regulations.
Vacasa Continues to Lose Vacation Rental Owners
06.12.2023 - 04:15 / skift.com / Srividya Kalyanaraman / Rob Greyber
Top of the morning to you, readers! In the spirit of debate, here’s a contrarian view we don’t hear often: Alleged proof that banning Airbnbs indeed makes rents and housing more affordable. Real Estate Economics crunched the numbers for us, and urges you to look at Irvine, California as a case study.
Moving on.
On the itinerary today:
Property manager Vacasa’s persistent problem of homeowner churn won’t go away.
From the end of last year until now, the Portland, Oregon-based company has seen homeowners leaving its platform and CEO Rob Greyber expects it will continue into the first quarter of 2024.
Vacasa’s third quarter revenue stood at $379 million, down 8% year over year. The company reported a net loss of $402 million. The company expects a 6-7% revenue decline in 2023 and an Adjusted EBITDA of $5-15 million for the year.
In covering Inspirato and Vacasa earnings this week, I observed that despite posting steep losses, both companies were optimistic about growing again, thanks to rational business planning and cost saving measures: In both cases, the companies did layoffs, pruned their portfolios, and curtailed software expenses.
Inspirato’s annual burn rate of $60 million would be neutralized by savings north of $50 million by next year, the company reassured investors.
Vacasa said it reduced its cost of revenue by 13% year over year, and its technology and development expenses decreased by 11%, along with sales and marketing expenses by 23%.
Both Inspirato and Vacasa went public via SPAC mergers and ended up going through stock splits in the recent past. While softening demand is an industry headwind, both Vacasa, Inspirato and other companies in the short-term rental industry are shifting gears from growth mode to liquidity mode.
“The short-term rental industry continues to adjust to a dynamic macroeconomic environment and changing travel patterns, and we see the impacts of this in elevated levels of homeowner churn,” Vacasa CEO Rob Greyber said. “Homeowners are responding to recent market conditions, evaluating if they should continue to rent out their home and if so, on what terms.”
The Association of Scotland’s Self-Caterers picked data vendor Key Data as an exclusive partner. In this collaboration the association’s nearly 1,700 members can use Key Data’s Scottish market insights dashboard for real-time performance and industry trend analysis. All ASSC members receive preferred access to Key Data’s business intelligence and benchmarking tools, covering over 45 key performance indicators crucial for adjusting STR business strategies.
Zeus Living, a property management startup that secured funding from Airbnb is shutting down. The startup raised $150 million in funding from tech
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matadornetwork.com
16.12.2023 / 14:35
Vacation Like Royalty at These Luxury Airbnbs Minutes From the Palace of Versailles
The city of Versailles is renowned worldwide for the châteaux, Palace of Versailles and its gardens. Located in the western suburbs of the French capital, just over 10 miles from the centre of Paris, Versailles is a popular day trip, but it’s worth considering an overnight stay. There’s a lot to explore, the Palace of Versailles, often referred to as simply Versailles, is one of the most famous historic monuments in the world and the landscaped gardens are simply spectacular. After a long day admiring the opulent architecture, strolling through the Orangerie and soaking up the history, settle into an Airbnb Versailles rental property and enjoy the city like a local. The Airbnbs below showcases the very best options for solo travelers, couples, families, and groups, who would prefer to enjoy Versailles at a leisurely pace.
matadornetwork.com
16.12.2023 / 14:34
You Can Have a Luxurious yet Budget-Friendly Beach Vacation at This Albanian Resort
Luxurious beach vacations aren’t always friendly on the wallet. Albania, however, is one of the more budget-friendly countries in Europe, and also coincidentally has some of the best lesser-visited beaches on the continent. Hotel Castle Beach Club, for example, in the heart of Ksamil, Albania, offers a special blend of relaxation and adventure. Ideally located close to the town center, it’s the perfect getaway for those seeking a tranquil beach vacation with all the conveniences at their fingertips.
thepointsguy.com
08.12.2023 / 20:37
American Express expands vacation rental platform to new destinations
It appears American Express' pilot program of a luxury vacation home rental platform is doing well enough to expand to new destinations and invite more members into the mix.
skift.com
06.12.2023 / 23:53
Canadian Curbs on Short-Term Rentals
Happy Thanksgiving, folks! I know you’d rather carve a turkey than open your inbox, so we will keep this brief.
skift.com
06.12.2023 / 04:39
Vacasa CEO on Delisting: 'That’s Not Going to Happen'
You read it here first: Swiss travel investor Viadi Group has acquired British luxury villa rental marketplace, Edge Retreats.
skift.com
06.12.2023 / 04:37
Vacasa's Reliance on Booking Sites
Skift Analysis: Vacasa‘s debut into the public market in December 2021 had a significant impact on the short-term rental industry. Being one of the largest branded property managers in the U.S., Vacasa plays a crucial role in various aspects of the short-term rental sector and serves as an important indicator for the industry’s overall performance.
skift.com
06.12.2023 / 04:35
Short-Term Rental Investments Aren't as Easy as You Hear on TikTok
Taylor Jones, a Florida real estate investor, tells us the key to making money from an Airbnb you invested in is the purchase price for the property — and how much revenue you can extract from the property.
skift.com
06.12.2023 / 04:32
These Pop-Up Hotels Are a Solution for Tough Rental Markets
What do you do when you’re a short-term rental operator during peak travel season in a busy market with regulatory restrictions?
skift.com
06.12.2023 / 04:31
A Short-Term Rental Fueled Construction Boom
The City of Myrtle Beach, South Carolina earlier this week gave its initial approval to a multi-family housing development plan. The proposal entails the annexation and rezoning of approximately 18 acres of land. Presently, the site is designated for commercial projects, but the proposed zoning change would permit a mix of commercial and residential development — this would include construction of more than 380 housing units, with a portion of them anticipated to be utilized for short-term rentals.
skift.com
06.12.2023 / 04:28
Wave of Lawsuits Emerge as Short-Term Rental Owners Battle Regulations
Regulators have been going after short-term rentals. Now homeowners are fighting back.
skift.com
06.12.2023 / 04:21
Airbnb CEO to Hotel Lobby: It Doesn't Have to Be Win-Lose
Happy Tuesday, folks! We’re back after last week’s 10th annual Skift Global Forum in New York City. It was quite the event: Notable speakers for me were Airbnb CEO Brian Chesky, Salamander Hotels CEO Sheila Johnson, and Uber CEO Dara Khosrowshahi.