The Series D was led by Apax Digital Fund and brings Guestys total funding to more than $110 million. Sonder, founded in 2014, operates short-term rentals out of different types of properties: The company began by operating out of traditional apartments in residential buildings, before expanding to full-building apartment hotels and, more recently, standard hotels. 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. 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. 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 company expects the deal to close in the second half of 2021. Second-home startup Pacaso hired as head of industry relations. We thought that's where the hospitality industry was bound to go and where the customer would prefer to go, but COVID has really accelerated that. The goal has always been to go public as part of the path of achieving our overall goal: the mission of the business. 2022. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. Why are you in such a good position to go public now when it's been a challenge across the board for your competitors? We reported company-record quarterly revenue in Q2 and are eager to pursue continued growth, said Francis Davidson, Co-Founder and CEO of Sonder. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. We're not acquiring these assets, but we're running a process that's just as thorough. 2021, Volt Equity (Volt). real estate targeting, warehouse and inventory management, logistics planning, etc.). Earlier this month, the firm said it would buy Homes.com for $156 million. Investing involves risk and possible loss of principal capital. 1 to Agreement and Plan of Merger, dated as of October 27, 2021, by and among Gores Metropoulos II, Sonder and the other parties to the Merger Agreement (such amendment, Amendment No. In 2020, Sonder says they have 4,565 units. Funding: Placer.ai, a location-data startup, raised $50 million from Josh Buckley, CEO of Product Hunt; angel investor Todd Goldberg and Rahul Vohra, CEO of Superhuman, an AI-focused email startup. 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. This communication is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities pursuant to the proposed Business Combination or otherwise, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. With this incremental investment, we will have ~$530M of capital at closing, in addition to up to $450M proceeds from the SPAC trust, which provides for a fully funded business plan upon closing, the SPAC said in a letter to Sonder team. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. WebInvestor Presentation (March 2023)21.8 MB 3Q22 Shareholder Letter5.8 MB 2Q22 Shareholder Letter6.5 MB Cash Flow Positive Plan Presentation1.4 MB 1Q22 Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. "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. Content is subject to change without notice. Two years later, the firm moved its headquarters to San Francisco and incorporated in the US, in pursuit of international investors. Any and all subjective claims and statements made on this site regarding companies or securities are strictly the beliefs and views held by Volt and are in no way meant to be an endorsement by Volt of any company or security and nor is it meant to be a recommendation by Volt to buy, sell, or hold any security.Past performance is no guarantee of future returns. We appreciate our close partnership with the Gores team and with our business combination completed, Sonder now has a very strong balance sheet to aggressively pursue our ambitious growth strategy, revolutionize hospitality, and deliver long-term value to shareholders., "Were proud to have partnered with Sonder and look forward to supporting their next chapter of growth," said Ted Fike, Senior Managing Director at The Gores Group. However, over the last couple of years, Sonder has begun to expand its presence in Montral once more. served as legal advisor to Sonder. WebLaunched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments 2023. The brand generates $10 million per quarter, CoStar said. Sonder Investor Presentation (Nov 2021) - All Key Slides The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. The travel and hospitality industry has been hit hard by the ongoing pandemic, which has led many to cancel, postpone, or scale down their travel plans, impacting both traditional hotels and tech companies like Sonder and Airbnb. 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. Filing date. We spoke with Sonder's Francis Davidson about the deal and his outlook on the hospitality industry. 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. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. Josh Scott is a BetaKit reporter focused on breaking news and telling in-depth Canadian tech stories. We've never thought of positioning the business for a quick acquisition. 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%. SAN FRANCISCO & LOS ANGELES--(BUSINESS WIRE)--Sonder Holdings Inc. (Sonder'' or the Company), a leading next-generation hospitality company that is redefining the guest experience through technology and design, today announced that it completed its previously announced business combination with Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) (GM II), a special purpose acquisition company sponsored by affiliates of The Gores Group, LLC, and Metropoulos & Co. Arguably, business is going to take longer to recover. Wilson Sonsini Goodrich & Rosati, P.C. Hospitality startup will reap $650 million, notches $2.2 billion valuation, Sonder co-founder Francis Davidson (Sonder, iStock). SAN FRANCISCO & LOS ANGELES-- ( BUSINESS WIRE )--Sonder Holdings Inc. (Sonder'' or the Company), a leading next-generation hospitality 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. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity SPACs can then merge with private companies, taking them public in the process. Lodging startup Sonder agrees to go public via $2.2 bln SPAC deal In the past few years, we've shifted away from trying to get into existing buildings that are up and running, but rather working with developers to build new ones or do really substantial renovations on older ones. For Sonder: The proposed business combination remains on track to close in the second half of 2021, subject to approval by Gores Metropoulos IIs stockholders and other customary closing conditions. 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. This kind of financial discipline, with a really rapid response to the pandemic, has meant that we've been able to outperform a lot of the competition and be in a relatively strong position. 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. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Opendoor Eric Wus total compensation was $370.2 million, with a base salary of $325,000. It proved to be really successful: We managed to bring occupancy rates back to pre-pandemic levels quite rapidly. All material subject to strictly enforced copyright laws. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. 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. The SPAC that Sonder will merge with, Gores Metropoulos II, raised $450 million in its initial public offering in January. Many services like the front desk, concierge, customer service, cleaning are replaced with their app. View. Gores Group, a prolific dealmaker in the space, has raised 13 special purpose acquisition companies (SPACs) so far. We strongly believe that Sonder is the hospitality brand of tomorrow and have high conviction that the company will continue to grow, which is why we are increasing our initial investment, said Alec Gores, Chairman and CEO of The Gores Group and CEO of Gores Metropoulos II. Media Contacts Access exclusive travel research, data insights, and surveys. 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The content should not be considered investment advice and is for educational purposes only. WebExpedia Investor Presentation Deck. In the past year alone, weve launched in three additional countries and expanded our operations in dozens of other markets, and we expect to continue to scale our business and innovate to adapt to the needs of emerging traveler segments like digital nomads.. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. GM II raised $450 million through an initial public offering in January. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. Your submission has been received! RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. SPAC Our mission is really one of democratization here. Gores SPACs High Redemptions Signal Worsening Sector Proptech CEO pay, the Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. WebReports & Presentations. Brokerage giant Realogy struck a massive deal with MoxiWorks, a real estate software startup. Sonder projected it will have 77,000 units within five years. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. It's interesting to see how Sonder's narrative has evolved from when they raised their series D in 2019 to when they were targeted for a SPAC in 2021. 0001819395-23-000056.pdf. 1)) and the proposed Business Combination contemplated thereby; (b) the inability to complete the proposed Business Combination due to the failure to obtain approval of the stockholders of Gores Metropoulos II or other conditions to closing in the Merger Agreement (as amended by Amendment No. So now it's about 50% of our business. 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. Launched by Davidson and cofounder Lucas Pellan in 2012 as a way to rent vacant college apartments, Sonder's portfolio has grown to a massive size. Our view was that we wanted to lean into the recovery. Opendoor tapped Squares Mike Cieri as vice president of product for its buyer team. These forward-looking statements are based on Gores Metropoulos IIs or Sonders managements current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. It's going to be really interesting to see how we might be able to capture some of that demand. UPDATE: SONDER. SAN FRANCISCO & LOS ANGELES--(BUSINESS WIRE)--Sonder Holdings Inc. (Sonder'' or the Company), a leading next-generation hospitality company that is redefining the guest experience through technology and design, and Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW and GMIIU), a special purpose acquisition company formed by affiliates of The Gores Group and Metropoulos & Co., announced strategic amendments to the terms of their previously announced definitive agreement (the Merger Agreement) to combine. On the supply side, the new deals that we struck with real-estate owners meaningfully improved. The company currently operates in 70 countries, and CEO Amiad Soto said the funding will go toward market and tech expansion. Weil, Gotshal & Manges LLP is serving as legal advisor to Gores Metropoulos II. February 24, 2022 Updated: March 3, 2022 Leading up to Sonder's SPAC merger with Gores Metropoulos II, Sonder gave an investor presentation in November Corporate Demand Guided Expansion Strategy Investors We sat down with Francis Davidson, Sonder's cofounder and CEO who founded the company by renting out his college apartment to discuss the deal and the future of travel. We should be conservative.". 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. Gores is taking Sonder public. 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, Miami luxury real estate agent pleads guilty in PPP fraud case, Sonder to open in Flatiron Hotel next month. Lodging Firm Sonder Agrees to $2.2 Billion Gores SPAC Merger Additionally, the Company has put in place a non-binding term sheet for Delayed Draw Notes of $220 million with existing PIPE investors, to be available following closing of the proposed business combination. And it's typical for the landlord to fund it. I think it's really important to underscore that we are a technology meets operations company. It operates over 300 properties in 35 markets, with plans to invest in tech, expand 2019, US$ 142.908 million Sonder began trading on the Nasdaq this morning, after completing its previously announced business combination with Gores Metropoulos II, a California-based special purpose acquisition company (SPAC). press@sonder.com Volt does not purport to provide any legal, tax, or accounting advice. The now United States-based company has strong Canadian roots. ir@sonder.com Overview | Sonder Holdings Inc. The Gores Group The Gores Group Peter Thiel on Identifying Disruptive Companies: 10x Better than Competitors. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. OpenSpace, founded in 2017, uses AI and cameras affixed to workers hardhats, to provide 360-degree images of job sites. Cosmo Specialty Fibers Sonder Hospitality - SPAC - Current. We have built technology that our guests can benefit from, like the mobile app where you can manage your entire stay. Click here to join the thousands of knowledgeable readers who subscribe to Future City. SEC Filings | Sonder Holdings Inc. Founded in 2014, the Israel-based company has been in growth mode. 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. But Sonder is able to score well on all 3 dimensions. We appear to be moving pastthe pandemic disruption. There might not be a better time, in the history of hospitality, to bring our revolutionary concept to the forefront.

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