Sonder shifts to revenue sharing

Moving from fixed leases to revenue share is really a move from taking real estate risk to taking operating risk. Under a fixed lease, Sonder owes rent even when rooms sit empty. Under revenue share, the owner gets paid more when occupancy and room rates are strong, and less when demand weakens. That makes the property owner a partner in filling rooms and keeping the building competitive, instead of a landlord collecting the same check no matter what happens.

• This matters because fixed rent was the part of the model that broke many apartment hotel operators during the pandemic. Lyric, Stay Alfred, and Domio were all hurt by having to cover rent after travel demand collapsed, while newer operators like Kasa leaned harder into revenue share to stay more flexible.
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• The tradeoff is economic. Sonder gives up some upside on strong properties, but it lowers the chance that a building becomes a cash drain in a weak market. That is the same logic behind OYO dropping minimum guarantees and shifting hotel partners to pure revenue sharing as it pushed toward profitability.
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• It also changes the sales pitch to owners. Instead of offering a fixed lease and taking the whole demand risk, Sonder can offer a smaller guaranteed payment plus a share of bookings. Wander uses a similar structure, taking roughly 20% to 25% of revenue to manage homes on behalf of owners rather than leasing them outright.
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The model is heading toward a more hotel like management contract structure, where the operator wins by driving occupancy, pricing, and repeat demand rather than by financial engineering on leases. The companies that survive in this category are likely to be the ones that control guest experience and distribution, while leaving more of the downside real estate exposure with owners.