Please refer to Service Fee documentation. Essentially, the Host only fee is required whenever a Host is API connected (with some exceptions) and whenever a host has a Traditional Hospitality Listing:
Host-only fee is mandatory for traditional hospitality listings, such as hotels, serviced apartments, etc., as well as software-connected Hosts. All Hosts with API connection (connected with the
property_managementscope), will be enrolled to a Host-only fee and will not be able to opt-out unless most of their listings are in the US, Canada, the Bahamas, Mexico, Argentina, Taiwan, or Uruguay.
For traditional hospitality listing, it is important to take note that regardless of their listing location or API connection status, the host will be forced to use Host-Only fee. The only way around this would be to:
Delete the listing; OR
Change its property type from a traditional hospitality listing.