From fixed leases to revenue share

The winners in apartment style hospitality have moved from renting real estate risk to taking a cut of revenue. That shift changes the business from paying landlords fixed rent no matter what, to getting paid for operating units well. Sonder has already been moving part of its own portfolio from fixed leases toward base rent plus revenue share, while newer survivors pushed further by building management, partner network, and owner aligned structures from the start.

• Kasa is built around property partnerships and management services rather than acting only as a long term tenant. Its materials emphasize tools for owners, distribution across 25 plus booking channels, and an asset light model, which means less balance sheet exposure when travel demand drops.
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• Blueground added a Partner Network with 18,000 third party units on top of its managed portfolio, showing a second path to flexibility. Instead of controlling every apartment directly, it can route demand to outside operators such as Kasa and earn commissions and platform economics on monthly stays.
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• Mint House and AvantStay both frame themselves as owner aligned operators. Mint House markets flexible deal structures and can take only part of a building, while AvantStay runs a revenue share model for luxury homes instead of signing master leases. In practice, that means supply can expand or contract with much less fixed cost than Sonders original model.
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This category is heading toward a blended model where the brand, software, pricing engine, and demand channels matter more than holding long dated lease obligations. The companies that keep growing are likely to look less like synthetic hotel chains and more like operating systems for professionally managed short term and monthly rentals.