Sonder’s Fall, Market Shifts, and What It Means for STR Operators

Nov 13, 2025

Sonder's bankruptcy is shaking up the short-term rental market, revealing cracks in the rental arbitrage model. The drop in international travel is leading to uneven recovery in urban areas. Surprisingly, luxury travel is thriving while midscale operators, like Sonder, struggle. Airbnb's new service fees may cut into host revenues, and occupancy rates are declining. Plus, advancements in machine learning promise to enhance data accuracy, helping operators navigate these turbulent times more effectively.

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ANECDOTE

Regular Guest Skips Sonder Stay

Scott usually stayed at Sonder when visiting Denver but did not this week due to recent events.
His change in plans highlights how Sonder's collapse affected regular guests and travel habits.

INSIGHT

Rental Arbitrage Model In Trouble

Jamie calls Sonder's failure a clear shot across the bow for the rental arbitrage model.
He notes most master-lease, hotel-style short-term rental firms have already struggled post-COVID.

INSIGHT

Urban Recovery Lags Behind

Urban short-term rental demand and hotel demand remain below 2019 levels, hurting city-focused operators.
International inbound stays to U.S. STRs fell 16% this summer, hitting urban bookings hardest.

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Sonder’s bankruptcy has shaken the short-term rental world — and for good reason. Once the poster child of the “hotel-meets-Airbnb” model, Sonder’s downfall marks a pivotal moment for operators everywhere. In this episode, AirDNA’s Chief Economist Jamie Lane and co-host Scott Sage unpack what went wrong, what it signals for the rental arbitrage model, and how changing travel demand is reshaping the industry.

From a surprising partnership failure with Marriott to the ripple effects in urban markets still struggling post-COVID, Jamie and Scott connect the dots between Sonder’s story and broader market trends. They also dig into fresh October 2025 performance data, including occupancy declines, rate adjustments, and a critical PSA for hosts affected by Airbnb’s new service fee model.

The episode closes with a behind-the-scenes look at AirDNA’s latest data model upgrades, revealing how machine learning is improving accuracy and trust in industry insights — setting the stage for even more powerful analytics ahead.

You don’t want to miss this episode — especially if you rely on rental data to guide your business decisions.

Key Takeaways for STR Pros

🏚️ Sonder’s bankruptcy signals the end of rental arbitrage — operators tied to high-cost leases are struggling as demand and urban travel lag.
🏙️ Urban recovery is still uneven: international inbound demand to the U.S. fell 16% this year, weighing heavily on city performance.
💸 Watch your margins: many hosts haven’t offset Airbnb’s new 15% service fee, which could cut into real earnings this winter.
📉 October’s numbers show slowing demand (2.5%) and occupancy declines (~1.5%), mirroring weakness in hotels — but mountain markets saw a lift from fall “leaf peeping” travel.
🤖 AirDNA’s new data models boost accuracy, capturing longer-term stays and eliminating duplicate listings — giving hosts clearer, more reliable market visibility.

https://bit.ly/3JLl2lM

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Connect with Jamie on social media

LinkedIn: https://www.linkedin.com/in/jamiehlane/

Twitter: https://twitter.com/Jamie_Lane

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Connect with Scott on social media

LinkedIn: https://www.linkedin.com/in/sagescott

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Connect with AirDNA on social media:

Instagram: https://instagram.com/airdna.co

LinkedIn: https://www.linkedin.com/company/airdna/

Twitter: https://twitter.com/airdna

TikTok: https://www.tiktok.com/@airdna.co

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Episode 158