Sauna ROI in Short Term Rentals

๐Ÿ” Key Insights on Sauna ROI in Short-Term Rentals

1. Listing Premium and Occupancy Boost

  • Listing Premium: Listings with unique amenities like a sauna often command 10โ€“30% higher nightly rates, depending on the market.

  • Increased Occupancy: Many hosts report higher occupancy rates due to increased appealโ€”especially in colder climates or wellness-focused destinations.

  • Example: In ski towns or nature-heavy markets, adding a sauna can shift a listing into a "luxury" category, unlocking a different guest segment.

2. Search Filters & Market Differentiation

  • Airbnb and VRBO both allow guests to filter by sauna. In saturated markets, this can significantly improve visibility and click-through.

  • A sauna can turn an ordinary home into a "destination property", especially when paired with hot tubs, cold plunges, or a nature-focused setting.

3. User Reviews & Rebooking

  • Guests often highlight saunas in 5-star reviews, increasing the overall rating and future booking rates.

  • Unique features like saunas improve social shareability, creating organic marketing.

4. Estimated ROI Figures

  • Cost of Installation: $6,000โ€“$18,000 depending on type (barrel vs. custom indoor), electrical setup, and finish level.

  • Return Timeline: 12โ€“24 months is a common payback period cited by hosts who see regular usage and good marketing.

  • Case Study Highlights:

    • A host in Oregon reported an ROI of 14 months on a $9,000 barrel sauna.

    • A cabin in Colorado saw a $40/night premium after installing a sauna, netting ~$4,000 extra in one winter season alone.

5. Best ROI Conditions

  • Cold-weather or nature destinations

  • Properties with already strong guest experiences (fire pits, views, decks)

  • Markets with limited luxury wellness offerings

  • When paired with professional photos and wellness branding

๐Ÿ› ๏ธ Tips to Maximize ROI

  1. Market it heavily โ€“ Call it out in your listing title, photos, and first paragraph.

  2. Add complementary features โ€“ Cold plunge, outdoor shower, deck seating.

  3. Optimize cost โ€“ Use prefab barrel saunas or DIY kits with professional install.

  4. Consider liability โ€“ Post safety guidelines and ensure adequate insurance.

  5. Seasonal pricing strategy โ€“ Adjust your rate more aggressively during cold months to leverage sauna appeal.

๐Ÿ“Š Data Sources

1. Up to 301% Return in 7 Months

A report by Revedy (Aug 12, 2024) shows that investment-grade suburban STRs with saunas achieved up to 301% ROI in just 7 months. They analyzed data from 2021 to 2024, highlighting that mountain- and coastal-leisure properties saw the highest gains Reddit+5Revedy+5BiggerPockets+5.

2. 25โ€“30% Higher Nightly Rates & 10โ€“15% Occupancy Boost

Backcountry Recreationโ€™s data (circa 1 year ago) states that outdoor saunas (and hot tubs) can increase Airbnb nightly rates by 25โ€“30%, along with a 10โ€“15% rise in occupancyโ€”leading to much faster cost recovery Master Spas, LLC+2Backcountry Recreation+2Backcountry Recreation+2.

3. Airbnb Study: +$40/Night (Hot Tubs Proxy for Sauna)

While focused on hot tubs, Airbnb's internal study revealed that this wellness amenity (saunas exhibit similar wellness appeal) can add an average of $40 per night, translating to over $7,000 in extra annual revenue at just 50% occupancy Facebook+10Master Spas, LLC+10Master Spas, LLC+10.

Next
Next

Sauna and Cold Plunge Capacity Sizing for Hospitality