Why are you in such a good position to go public now when it's been a challenge across the board for your competitors? Now, Sonder is joining a SPAC wave that's seen deals surge to record highs this year, though momentum has slowed in recent weeks. Kindred Group plc reports in accordance with IFRS and has calendar year as financial year. Sard Verbinnen & Co Chris Mammone, The Blueshirt Group It proved to be really successful: We managed to bring occupancy rates back to pre-pandemic levels quite rapidly. It's like a hybrid of Airbnb and Hilton, turning apartments into hotel suites. WebLaunched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments The amended terms revise the combined companys pro forma enterprise value to $1.925 billion. Revenue tripled, the company said. Why are landlords willing to fund that much capital expenditure? The company scored a Goldman Sachs is advising Sonder, and Morgan Stanley is the leading adviser to Gores Metropoulos II. Managing Director Except as required by law, Sonder does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this report. Sonders common shares are currently trading on the Nasdaq under the symbol SOND, at a price of $8.61 USD. Special purpose acquisition companies are shells that raise funds through an IPO without underlying assets. What we know is that we have a lot of favorable characteristics that would allow us to recover faster. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. We're not acquiring these assets, but we're running a process that's just as thorough. After four consecutive quarters in which its profits sagged, the real estate data giant generated $74 million in net income during the first quarter. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup, and Deutsche Bank Securities Inc. served as joint lead placement agents on the PIPE. These margins being driven by post-COVID recovery, better lease agreements, and RevPAR and Property Level Cost initiatives. New PIPE Investment, US$ 200 million As part of the deal, Sonder will secure approximately $310 million USD in private investment in public equity (PIPE) capital and $165 million in delayed draw notes to support its new and existing growth initiatives. Opendoor tapped Squares Mike Cieri as vice president of product for its buyer team. In 2020, Sonder says they have 4,565 units. Exclusive news, data and analytics for financial market professionals. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the Existing PIPE. Gores Metropoulos II stockholders will also be able to obtain copies of the definitive proxy statement/consent solicitation statement/prospectus, without charge, once available, at the SECs website at www.sec.gov or by directing a request to: 6260 Lookout Road, Boulder, CO 80301, attention: Jennifer Kwon Chou, or by contacting Morrow Sodali LLC, the Companys proxy solicitor, for help, toll-free at (800) 662-5200 (banks and brokers can call collect at (203) 658-9400). Guesty, a property management startup targeting Airbnb hosts, raised $50 million last week. The industry leader for online information for tax, accounting and finance professionals. It's early to say how large that demographic is going to be in the years to come, when the world is reopened and offices are reopened, but it's going to be more than what it was before the pandemic. San Francisco-based Sonder Holdings Inc. (Sonder) officially launched in 2014 and was co-founded by Francis Davidson, Chief Executive Officer, and Martin Driven in part by increasing supply from 12k total units (live + contracted) in 2020 to 102k total units in 2025. We've always built a really financially diligent company, but we took this to the next level. Get the latest news about hotels and short-term rentals delivered to your inbox once a week. The way Sonder achieves this is through cutting out the fat in the hospitality industry through technology. The startups early investors include BDC Capital, Spark Capital, Thayer Ventures, ScaleUP Ventures, and Real Ventures. Obviously, tech and automation are part of why you have better profit margins compared to hotels. Takeaway: Even with Sonder's phenomenal historical growth (and jaw-dropping estimated future growth), there will still be a LOTof room for even more growth in this core lodging market for many years to come. We plan to have a multi-part series diving into Sonder's competition, strategy, leadership, and more. At a valuation of ~$2B and considering their estimated 2022 revenue, Sonder's revenue multiple would fall below the median multiple of upscale lodging companies like Hilton and Mariott, just above the median multiple of digital hospitality and real estate companies like Redfin and Tripadavisor, and below the median multiple of vertical disruptors like Uber, Doordash, and Airbnb. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. The idea is that Sonder is not a short-term-rental company. Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Metropoulos & Co. whose Principals are Dean, Evan and Daren Metropoulos. The Series D was led by Apax Digital Fund and brings Guestys total funding to more than $110 million. Can you talk me through your decision to go public? Past investors in Sonder include Atreides Management, LP, Bezos Expeditions, GreenOaks, Fidelity Management & Research, GreyLock Partners, iNovia, Spark Capital, Tao, Valor Equity Partners, Westcap, and the Wilson family. "I think you can view us as a next-generation Marriott," Davidson said, adding that Sonder partners with companies including Expedia Group Inc (EXPE.O), Airbnb Inc (ABNB.O) and Booking.com to reach out to customers. Volt does not seek to solicit or offer any of its products or services to any persons to whom doing so would otherwise be prohibited under the laws applicable to their place of citizenship, domicile or residence.Some of the content on this site may contain forward-looking statements, including but not limited to statements related to future expectations, based on Volts current outlook and assumptions. Over the course of their careers, Messrs. Gores and Metropoulos and their respective teams have invested in more than 180 portfolio companies through varying macroeconomic environments with a consistent, operationally-oriented investment strategy. Chris Mammone, The Blueshirt Group Kindred Group plc reports in accordance with IFRS and has calendar year as financial year. Sonder will retain its experienced management team. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement (as amended by that certain Amendment No. I remember being in a war room in February 2020, seeing our Italy numbers start going down every week.We've been an international business since 2015. Its analytics can be used to ensure workers comply with safety standards; managers can use it to benchmark performance. We're talking about a cost structure that's roughly, on an operating-cost basis, up to 50% lower than traditional. Wilson Sonsini Goodrich & Rosati, P.C. While the travel industry has faced headwinds with the ongoing pandemic, Sonder has continued to grow at a rapid clip, proving the resiliency of our business model and demonstrating our ability to pivot quickly to address emerging trends and traveler needs. It currently operates 8,000 (with contracts for 10,000 more). On the supply side, the new deals that we struck with real-estate owners meaningfully improved. It projected $4 billion in revenues in 2025, and profitability in 2023 when it forecast $24.2 million in EBITDA. We believe the addition of this incremental funding brings stability and security, enabling Sonder to be appropriately capitalized to fund our continued growth over the next several years. Leading up to Sonder's SPAC merger with Gores Metropoulos II, Sonder gave an investor presentation in November 2021 laying out the narrative and future of their company with amazing clarity and transparency. All Rights Reserved. The announcement follows a grueling year for hospitality. Media Contacts The deal would value Sonder at $2.2 billion, almost $1 billion more than its June valuation of $1.3 billion, and includes $650 million in total cash proceeds. Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. The hospitality startup, which leases apartments and turns them into furnished, short-term rentals, announced plans to merge with a blank-check firm backed by SPAC pioneers Alec Gores and Dean Metropoulos. We improved unit economics by having landlords funding all of the investments required for a company to become a Sonder. We think the current online players are overly focused on capturing agents fees.. The deal with Gores Metropoulos II (GMII.O)will give the hospitality startup $650 million of cash proceeds, including a private placement of $200 million from investors such as Fidelity Management & Research Company LLC and BlackRock Inc (BLK.N). Javascript is required for this site to display correctly. 2019, US$ 178.767 million (LOSS). Let's also plug in our technology and modernize this hotel so that the customer experience can be improved and the cost structure can go down.". All material subject to strictly enforced copyright laws. Over the course of their careers, Messrs. Gores and Metropoulos and their respective teams have invested in more than 180 portfolio companies through varying macroeconomic environments with a consistent, operationally-oriented investment strategy. Hypothetical strategies and indices presented are unmanaged, do not reflect any fees, expenses, transaction costs, commissions or taxes, and one cannot invest directly in any of these. The Your submission has been received! We can show the value proposition on a spreadsheet. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. The company scored a valuation of $2.2 billion in the deal and expects to reap $650 million in the offering, Reuters reported. 310-209-3010 Terms werent disclosed. After a record 109 SPAC deals in March, the market cooled with just 10 deals in April, according to SPAC Research. What does that mean for hospitality jobs? One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. There's no Sonder city where there's no Sonder employees, so we do provide meaningful employment. The deal would value Sonder at $2.2 billion, almost $1 billion more than its June valuation of $1.3 billion, and includes $650 million in total cash proceeds. Corporate Demand Guided Expansion Strategy Complete with self-service features, simple check-in and 24/7 on-the-ground support, amenities and services at Sonder are just a tap away, making a world of better stays open to all. Launched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments found in over 35 markets spanning ten countries and three continents. Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Sign up to our email list so you don't miss a thing. Zonda acquired BuzzBuzzHome, a new development listing site, for an undisclosed sum. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. Last year, Sonder reached a valuation of $1.3 billion after a funding round. We have an exceptional team in place to drive the next chapters of growth for our organization., We continue to lead and innovate with our tech-enabled offering, inspiring design, consistent quality, and compelling value that are the hallmarks of a great modern hospitality experience, said Sanjay Banker, President and Chief Financial Officer of Sonder. Reporting by Sohini Podder in Bengaluru; Editing by Ramakrishnan M. Law firms and corporate law departments find strategic partners in ALSPs, US regulation after SVBs collapse: What regulators can do and where Congress needs to act, Ransomware & crypto: The growing compliance challenge, Insights in Action: Corporate law departments find their outside firms innovation lagging, but there may be little incentive to change, Regulators seize First Republic Bank, sell assets to JPMorgan, American Airlines pilots authorize a strike mandate, Factbox: JPMorgan's deal for collapsed First Republic explained, Exclusive: Subway comes up with debt plan to clinch $10 billion-plus sale. Placers data helped them understand and navigate the change.. Company Profile. 2021. These two things have meant that we've gone from funding 84% of the capital expenditure of the deals we did in 2019 to now funding 10%. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Sonders managements control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Investing involves risk and possible loss of principal capital. But Sonder is able to score well on all 3 dimensions. is serving as legal advisor to Sonder. Subject to any redemptions by the public stockholders of Gores Metropoulos II and the payment of transaction expenses at the closing, the $200 million in Existing PIPE proceeds and approximately $110 million in proceeds from the New PIPEs will be used together with up to $450 million in cash in Gores Metropoulos IIs trust account and Delayed Draw Notes of $220 million to fund operations and support new and existing growth initiatives. In 2020, CoStars Andy Florance was compensated $21.3 million, according to the companys recently filed proxy statement. So now it's about 50% of our business. Filing date. The company says it has 500 customers, including JLL, retail center operators Brixmor and Taubman, along with Planet Fitness and Dollar General. And Adj. We should be conservative.". We delivered record quarterly revenue in both Q2 and Q3 and we remain aggressively optimistic on the future of travel, said Francis Davidson, Co-Founder and Chief Executive Officer of Sonder. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. Jennifer Kwon Chou 2008-2023 Sovereign Wealth Fund Institute. Sonder reported $116 million in revenue last year, a 19% drop year-over-year. And when that happens if you're building a building where every unit is $500,000, spending an extra $10,000 to bring it up to Sonder standard it's easy to show the owner the benefits we bring to the table. Forward-looking statements included in this document speak only as of the date of this document. Cosmo Specialty Fibers Sonder Hospitality - SPAC - Current. The Gores Group The results presented should not be viewed as indicative of the adviser skill and do not reflect the performance results that were achieved by any particular client. SPACs can then merge with private companies, taking them public in the process. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. Our view was that we wanted to lean into the recovery. Moelis & Company LLC acted as additional financial advisor to GM II. Gores Metropoulos II stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of Gores Metropoulos II in Gores Metropoulos IIs registration statement on Form S-1 (File No. Gores and Metropoulos facilitated an IPO for lidar sensor maker Luminar Technologies last August in a nearly $2.9 billion merger with a different SPAC. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Gores Metropoulos II stockholders in connection with the proposed Business Combination and other matters to be voted upon at the Special Meeting will be set forth in the Registration Statement for the proposed Business Combination when available. Sonder projected it will have 77,000 units within five years. UPDATE: SONDER. The business was heavily impacted when the global pandemic brought the travel industry to a halt last year, but has rebounded as it targets millennial leisure travelers, said Chief Executive and co-founder Francis Davidson. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. We really wanted to build an iconic 21st-century brand, and this is just one of the transitions that are required for it to make that happen. For proof that travel is back, look no further than Sonders $2.2 billion SPAC deal. In the next three to five years, we expect to be truly global with presence in Latin America and the Asia-Pacific region., RELATED: All signs point to Montral as home of Sonders second headquarters. Many services like the front desk, concierge, customer service, cleaning are replaced with their app. Two is that the vast majority of our travelers are domestic, not international. Wu only took $189,584, however, voluntarily donating the rest to a company relief fund for affected employees.
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