How to Pivot to a New STR Business Model (Ep. 348)

How to Pivot to a New STR Business Model (Ep. 348)

How to pivot to a new STR business model


Did COVID-19 put a halt to your short-term rental (STR) business? If so, you may need to restructure your Airbnb portfolio and pivot to a new business model. A business model that will stand the test of time.

Ryan Anderson is the Founder and CEO at Sojourn, an upscale STR venture that had grown to 200 active units in the US, Puerto Rico, Mexico and Colombia—until the Coronavirus pandemic devastated his business. A serial entrepreneur with a background in finance, Ryan has founded companies in the technology, craft beer and hospitality space, and today, he is downsizing his portfolio and developing a new approach to the STR business.

On this episode of Get Paid for Your Pad, Ryan joins me explain why he is shifting away from the master lease Airbnb model and pivoting to an owner-operator paradigm. He shares the most important lessons he has learned through the Coronavirus crisis, describing how he plans to grow slower and wiser in the future. Listen in for Ryan’s insight on building a brand that reflects who you are as a person and get ideas for developing a STR business model that is sustainable for the long term.

Topics Covered

An overview of Ryan’s business pre-COVID

  • Master lease Airbnb model in urban markets
  • 200 active units across four countries

What Ryan’s STR business looks like now

  • Gave back nearly all master lease units
  • Looking to invest in multifamily properties (flexible living model)
  • Test market for camper van rentals

Ryan’s predictions around the future of the master lease model

  • Supply has gone away in reaction to COVID shutdown
  • Those who hang onto supply will see big returns again

The most important lessons Ryan has learned from the crisis

  • Must own asset to acquire wealth over time
  • Stay disciplined and focus on fundamentals

Why Ryan had expanded to so many different markets

  • Concerned about regulations in US
  • Acquired HostTonight (already operating south of border)

What Ryan would do differently if he could go back

  • Grow slower and wiser (can’t blitzscale hospitality)
  • Enjoy journey, not so hyper-focused on destination

The challenge of negotiating with landlords in a global pandemic

  • Difficult to convince that business would grind to halt
  • Tense circumstances, not easy to persuade via Zoom

Ryan’s best advice for aspiring STR entrepreneurs

  • Build brand that reflects who you are, what you enjoy
  • Money can’t be only motivator in tough times

Connect with Ryan

Ryan on LinkedIn

Resources

Sonder

Outdoorsy

Outdoorsy on GPFYP EP266

Stay Alfred

Lyric

Domio

HostTonight

STR Legends

STR Profit Academy

WanderJaunt

Email jasper@getpaidforyourpad.com

Sponsor

Hostfully

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