I’ve been out of the vacation rental platform weeds for a while, but a headline last week pulled me back in: Casago offloaded around 1,000 contracted VR units to Evolve. At first, I figured it was a pullback. Turns out, it’s a pivot. Those contracts came from Vacasa’s self-managed business, and Casago wants to focus on its core model: franchising.
You might have missed it, but earlier this year, Casago scooped up the smoldering remains of Vacasa for $130 million in cash. That’s gotta be a humbling moment for a company once valued at $4 billion (and even more humbling for their investors). But Casago didn’t buy it to keep the Vacasa machine running. They’re dismantling it and rebuilding it in their own image.
The Casago model is franchise-first. Local operators manage the homes, handle the guest experience, and maintain owner relationships. Casago provides the tech, marketing, training, and booking infrastructure. From a hotel perspective, it’s like a hotel franchise — Casago, or the “new” Vacasa, supplies the tools and brand. Local franchisees run the show.
A quick scan of the Casago and Vacasa websites shows just over 300 listings in Hawaiʻi. That’s a steep drop from Vacasa’s estimated peak of more than 1,100 listings statewide. But Casago is promoting franchise opportunities in Hawai’i on their website.
But will the math, math? Owner-manager splits these days often hover around 80/20 in favor of the property owner. That doesn’t leave much to be split between the franchisee and Casago/Vacasa. Then again, if the franchisees are lean, boots-on-the-ground operators with limited overhead, maybe it pencils out.
Do you think this model could work here? Should local VR management players be concerned?
P.S. Casago started as a small, family-run rental business in Mexico that Steve Schwab took over and grew into a national franchise brand managing over 40K properties. Now based in Scottsdale, Casago is privately held with significant institutional backing.
