Back to S.F.L. Fundamentals

The luxury vacation rental, or single-family leisure (SFL) market, is an emerging asset class with significant opportunities for savvy investors. However, most investors lack a true understanding of how value is created within this class.

The deadpool of well-funded companies that turned a blind eye to this asset class’ key fundamentals is large… billions in capital wasted.

The first wave, featuring Vacasa, Sonder, Inspirato, and their many defunct derivatives and clones, failed to sustain value. 

And yet, the second wave appears to be repeating a lot of the same mistakes, with investors continuing to entrust billions in assets and investment capital to managers operating on borrowed time.

Even with these warning signs, our industry’s most celebrated founders, influencers, and investors continue to ignore the signs — despite being proven wrong in real time, in front of our eyes.

So, why is this happening? 

Because the space is deep-rooted with outdated business models that lead to unsustainable unit economics, which is encouraged by ill-adapted investment structures, and then hidden behind a serious lack of transparency.

You can’t just throw money into an emerging space based on surface-level KPIs and somehow expect to see healthy returns.

As an investor, it is essential for you to know the difference between an operator’s ability to syphon value from this asset class, and their ability to create it.

What we do at Jack Laurier is complex, difficult, and it took years to get to where we are now. At the end of 100,000+ hours of market research and operations, we now have a proven model no one else can replicate at the same international level.

This 3-part series will break down our industry’s most overlooked fundamentals and add important clarity for investors looking to enter this space with an informed approach.

READ NEXT:

The end of a confusion: Decoding the luxury SFL asset class

Navigating a predatory landscape: Adding transparency to the unit economics

The best-kept secret in real estate: Why we love the luxury SFL asset class