Media Contacts Download the Sonder app on Apple or Google Play. Sonder projected it will have 77,000 units within five years. According to Sonders presentation, the company had 2,000 live units in 2018, 5,000 live units in 2019, and 4,565 live units in 2020. I sign off in DocuSign on a summary of all the deals. Jennifer Kwon Chou Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder. It proved to be really successful: We managed to bring occupancy rates back to pre-pandemic levels quite rapidly. Sonder reported $116 million in revenue last year, a 19% drop year-over-year. Sonder. In 2020, Sonder had 5,000 units (with contracts for another 7,000). 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. Why are landlords willing to fund that much capital expenditure? Compass acquired digital closing startup Glide for an undisclosed sum. Volt does not purport to provide any legal, tax, or accounting advice. Takeaway: Given industry multiples and Sonder's growth rate, Sonder's valuation seems like the deal of a lifetime. In connection with the proposed Business Combination, Gores Metropoulos II has filed a registration statement on Form S-4 (the Registration Statement) that includes a preliminary proxy statement, consent solicitation statement and prospectus with respect to Gores Metropoulos IIs securities to be issued in connection with the proposed Business Combination that also constitutes a preliminary prospectus of Gores Metropoulos II and will mail a definitive proxy statement/consent solicitation statement/prospectus and other relevant documents to its stockholders. An additional $200 million is expected from private investors including BlackRock, Fidelity Management & Research and Senator Investment Group. Sonder illustrates the downfall of 3 different product offerings in the lodging and travel space today. Takeaway: Regarding the 3 dimensions of price, design, and quality consistency, Sonder introduces technology to drive down the price dimension, so that it can score top marks on all 3. The SPACs are shell companies that raise funds to take a private company public through a merger at a later date. This works really well for apartments, which is where we got started, but we realized that we could actually do this and operate hotels more effectively. 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. The Registration Statement is not yet effective. is serving as legal advisor to Sonder. u2014 CoStar CEO Andy Florance. Sonders common stock to commence trading on the Nasdaq under ticker SOND on January 19, Approximately $310 million PIPE capital from leading investors including affiliates of Gores Metropoulos II, Fidelity Management & Research LLC, funds and accounts managed by subsidiaries of BlackRock, Inc., Atreides Management, LP, and Senator Investment Group, Sonder to draw on $165 million in principal amount of Delayed Draw Notes following the closing of the business combination. Other CEOs followed suit. See here for a complete list of exchanges and delays. We think the current online players are overly focused on capturing agents fees.. SPACs can then merge with private companies, taking them public in the process. Wilson Sonsini Goodrich & Rosati, P.C. All references to available cash are subject to any redemptions by the public stockholders of GM II and payment of transaction expenses. Download the Sonder app on Apple or Google Play. Why should there be a concierge desk if you can message back and forth with a concierge in the same city you're in and get immediate responses? Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the buyer risks losing the entire premium invested in the option if the buyer does not exercise the option. Kelman stuck to his word and collected a salary of $63,609 (instead of $300,000). Now, Sonder is joining a SPAC wave that's seen deals surge to record highs this year, though momentum has slowed in recent weeks. Why are you in such a good position to go public now when it's been a challenge across the board for your competitors? The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. 2022. We improved unit economics by having landlords funding all of the investments required for a company to become a Sonder. The company will also have access to up to $450 million in cash through Gore Metropoulos IIs trust account. As part of the SPAC deal, Sonder will retain its management team: Davidson will stay on as CEO, and Sanjay Banker will continue to serve as president and CFO. It projected $4 billion in revenues in 2025, and profitability in 2023 when it forecast $24.2 million in EBITDA. Managing Director The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. The landlord is funding it. In the markets that we're in we're talking about substantial investments into those local economies either through our partners or with the employees that we have on the ground. All pictures below are taken from Sonder's investor presentation, the entirety of which can be downloaded from Sonder's investor relations page. Let's find people who are in need of temporary housing, or who don't want to live with their roommates during a pandemic." Meaning, you can perform well in 2 dimensions but not in all 3. With a differentiated, tech-driven platform and unique value proposition, were confident that becoming a public company will enable Sonder to solidify its leading position as the hospitality brand of tomorrow., Justin Wilson, Senior Managing Director at The Gores Group, added, "Sonder is a true disruptor in the travel space, with a proven ability to execute and deliver despite a very challenging period for the hospitality industry as a whole. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.The content on this site is not intended to serve as financial advice nor should it be the sole basis for any investment decisions. WebExpedia Investor Presentation Deck. Jennifer Kwon Chou 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. Oops! We have a lot of processes that are frankly akin to an investment committee at a private-equity firm. 310-209-3010 Chris Mammone, The Blueshirt Group And Adj. We are happy to share any additional information with you on request. Although the travel sector still faces strong headwinds due to COVID-19, Davidson said the company remains aggressively optimistic on the future of travel, citing Sonders record Q2 and Q3 2021 performance as evidence of the resiliency of its business. Investors should be aware of the inherent risks involved in investing in the markets and that past performance is not an indication of future results. We are really proud of what weve achieved to date and want to recognize the dedication of all Sonderites. The Gores Group Now, roughly 50% of our growth is conversion of independent hotels into Sonder hotels. Morgan Stanley & Co. LLC served as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup served as capital markets advisors to GM II. WebLatest Presentation For optimal viewing of the presentation, please open the PDF in a new window by clicking the Download PDF button below. And their 2021 SPAC merger investor presentation here. Highlights from the presentation are below. A year ago, Redfin CEO Glenn Kelman said he would forgo a salary after the tech brokerage had to furlough 40 percent of agents and staff. Managing Director In the short-run, were focused on rapidly growing, improving our technology, guest experience and operational efficiency, wrote Davidson in a LinkedIn post about the companys journey to becoming publicly-traded. The Hail Mary at the time was identifying other use cases. 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. Sonder works directly with real estate developers and property owners to lease, manage and operate spaces, providing guests with exceptionally designed accommodations at affordable prices on a nightly, weekly or monthly basis. 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. The idea of contactless service and skipping the front desk and going straight to your room are things that are now sought out by a larger share of consumers. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. A trend that I've been watching the development of is the "digital nomad," where remote workers move between different cities instead of settling down in one location. The Company also launched a corporate travel offering, opening its doors to even more business travelers and continues to grow its extended stays offering to capture new traveler groups. Were thrilled to have a committed and creative partner in Gores and the amendments, and incremental investment announced today will allow us to pursue our ambitious growth and expansion strategy in full force. Sonder is a hospitality company focused at short-term rentals. When used in this press release, the words estimates, projected, expects, anticipates, forecasts, plans, intends, believes, seeks, may, will, should, future, propose and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. In the last year, I spent nine out of last 12 months in Sonders across 20 plus of our markets, driving from place to place and working from them. We are happy to share any additional information with you on request. Goldman Sachs is advising Sonder, and Morgan Stanley is the leading adviser to Gores Metropoulos II. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. Takeaway: Sonder is expecting insane levels of growth, and despite being in a capital-intensive business, sees a rapid path to profitability. 1, will be provided in a Current Report on Form 8-K which will be filed by Gores Metropoulos II with the SEC and will also be available at www.sec.gov. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. The now United States-based company has strong Canadian roots. Additionally, the parties agreed to extend the Merger Agreement end date from October 28, 2021 to January 31, 2022 after which Gores Metropoulos II and Sonder would have the right to terminate the Merger Agreement if the proposed business combination has not been consummated by January 31, 2022. Leading next We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. These forward-looking statements are based on Sonders managements current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. It currently operates more than 300 properties in 35 markets. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. press@sonder.com UPDATE: SONDER. And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. However, the company reported up a loss of $54.6 million for its second quarter, on an adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] basis. The content should not be considered investment advice and is for educational purposes only. All quotes delayed a minimum of 15 minutes. Sonders leases are also subject to early termination. Last year, OpenSpaces maps more than came in handy. See here for a complete list of exchanges and delays. CEO Francis Davidson co-founded Sonder as a college student in Montreal in 2014. Access exclusive travel research, data insights, and surveys. These margins being driven by post-COVID recovery, better lease agreements, and RevPAR and Property Level Cost initiatives. WebCombination with Gores Metropoulos II . The full filing with the amended merger agreement is here. For Sonder: However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. 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. Sonder the lodging startup known for turning properties into short-term rental buildings is going public via a special acquisition company (SPAC), Gores Sonder's CEO called the listing a historic moment for the company. Volt does not purport to provide any legal, tax, or accounting advice. Forward-looking statements included in this document speak only as of the date of this document. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. 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. The brand generates $10 million per quarter, CoStar said. None of Volts proprietary content may be reproduced or referenced, in full or in part, in any other publication without the expressed written consent of Volt. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. This was a theory back in 2018, and we tested it out for a few dozen properties, and it was proved that it's worked extremely well. served as legal advisor to Sonder. We've never thought of positioning the business for a quick acquisition. Morgan Stanley & Co. LLC is serving as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup are serving as capital markets advisors to GM II. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. Get research, business strategy, and tech analysis delivered to your inbox. Investing involves risk and possible loss of principal capital. San Franciscos short-term rental startupSonder has lowered its going-public-through-SPAC valuation down to $1.925 billion from the earlier planned $2.2 billion, as market conditions change and SPACs face more headwind. The idea is that Sonder is not a short-term-rental company. We provide modern service through the phone, and we bring quality and standards to the industry. Finsbury Glover Hering 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. Two years later, the firm moved its headquarters to San Francisco and incorporated in the US, in pursuit of international investors. 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. 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. There's no product out there that is as high quality, consistent, affordable, and perfectly well set up to work while you're on the road. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Mitsubishi UFJ to sell SF office building at expected 80% discount, Real estate lender dodges bullet after Signatures collapse. The vast majority, around 80%, of our guests are less than 50 years old. On top of that, I think the benefit of our technology here is that it allows us to provide a really elevated stay at a much more affordable price point. As part of the amended terms of the transaction, the combined companys implied pro forma enterprise value will be $1.925 billion. SPAC Cash in Trust, US$ 450 million The CEOs of Opendoor and Porch saw hefty stock and options in a year when both companies went public. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Sonder currently operates more than 300 properties across 35 markets in eight countries. This interview has been edited for length and clarity.
Can Teachers Collect Spousal Social Security,
Generate All Combinations Of A List Excel,
Are Steve Walsh And Joe Walsh Related,
Boise To Salt Lake City Road Trip,
Articles S