And improving their Revenue per Available Room (RevPAR) from $74 to $165. Wilson Sonsini Goodrich & Rosati, P.C. Javascript is required for this site to display correctly. 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. 2022. We are happy to share any additional information with you on request. There might not be a better time, in the history of hospitality, to bring our revolutionary concept to the forefront. 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. What it does: The five-year-old company uses cell phone data to track pedestrian foot traffic in order to give retail and office landlords feedback on how stores and assets are doing. The goal has always been to go public as part of the path of achieving our overall goal: the mission of the business. All references to available cash are subject to any redemptions by the public stockholders of GM II and payment of transaction expenses. 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. We don't think it makes sense to spend several hundred dollars a night for a place to stay. 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. The San-Francisco-based company was in talks with Gores about going public in 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. is serving as legal advisor to Sonder. Gores Metropoulos II was formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. 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. Oops! press@sonder.com Terms werent disclosed. And this is really the purpose that the technology serves. Sign up to our email list so you don't miss a thing. So now it's about 50% of our business. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. Now, roughly 50% of our growth is conversion of independent hotels into Sonder hotels. For more investment insights, sign up for our email list below and subscribe to our YouTube channel. The content should not be considered investment advice and is for educational purposes only. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. Thats relatively flat year over year and up $36 million from Q4 2020. We saw that there's a chance that this would spread to the US and our core markets, and if that happened, we needed to be ready to respond. But even outside of the stay, Sonder leverages home-grown technology to optimize backend operations (e.g. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. See here for a complete list of exchanges and delays. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. Moreover, Sonder has signed a non-binding term sheet for Delayed Draw Notes of $220 million with existing PIPE investors, to be available following the closing of the proposed business combination, which enables the Company to fund its growth over the next several years. 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. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. 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. GAAP Revenue John Christiansen/Cassandra Bujarski 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 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). WebSeptember 27, 2007 - The Gores Group, LLC and Investors Complete Purchase of Compudyne Corporation; August 7, 2007 - Compudyne Corporation Agrees to be Acquired by Investor Group for $7.00 Per Share in Cash . 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. Concurrently with the consummation of the transaction, additional investors have committed to participate in the proposed business combination by purchasing shares of common stock of GM II in a private placement (the PIPE). 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. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Sonder reported $116 million in revenue last year, a 19% drop year-over-year. Last year, Sonder reached a valuation of $1.3 billion after a funding round. It's a really robust process to ensure that we're covered on the downside and that we only take on properties that are going to be really, really profitable and valued by our guests. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Revenue tripled, the company said. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. Launched in 2014, Davidson came up with the idea for Sonder while managing a few apartments for short-term stays as a university student in Montreal. We've always built a really financially diligent company, but we took this to the next level. Please contact our IR department. Download the Sonder app on Apple or Google Play. Guesty, a property management startup targeting Airbnb hosts, raised $50 million last week. Although the travel sector still faces strong headwinds due to COVID-19, Davidson said the company remains aggressively optimistic on the future of travel, citing Sonders record Q2 and Q3 2021 performance as evidence of the resiliency of its business. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. According to Sonders calculations, the company would need to have 34,889 live units with to have a positive adjusted EBITDA of US$ 24,201,000. Sonder expects to hit $4 billion of revenue in 2025 and touts its technology-driven service model can reduce operating costs compared with traditional hotels. 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%. We have built technology that our guests can benefit from, like the mobile app where you can manage your entire stay. Moelis & Company LLC acted as additional financial advisor to GM II. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. WebHis areas of focus include defining Sonders overall product strategy, maximizing the impact of tech investments and leading the delivery of product roadmaps. 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. Sonder reported $116 million in revenue last year, a 19% drop year-over-year. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. All Rights Reserved. What are you expecting to see in hospitality this year? Investing involves risk and possible loss of principal capital. WebLaunched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments UPDATE: SONDER. 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. As previously announced on April 30, 2021, Sonder entered into an agreement to combine with GMII. 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. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi Compass acquired digital closing startup Glide for an undisclosed sum. The opportunity in residential is so large and our assets have so much potential, CEO Andy Florance said during an earnings call. We're not cutting a check 90% of the time now when a property opens. But Sonder is able to score well on all 3 dimensions. View. We really skew toward Gen Z and millennials, where there's an expectation that these categories will come back. 333-251663), which was declared effective by the SEC on January 19, 2021. 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. It proved to be really successful: We managed to bring occupancy rates back to pre-pandemic levels quite rapidly. 2012-2023 BetaKit Incorporated. 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. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Please contact our IR department. GM II raised $450 million through an initial public offering in January. 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. Download PDF View All Featured Events September 13, 2022 Heliogen 2022 Investor & Analyst Day Presentation March 29, 2023 Heliogen Fourth Quarter and Full Year 2022 Earnings Call Webcast Sonder's CEO called the listing a historic moment for the company. Managing Director Sonder, the hospitality technology company, announced on Friday that it plans to go public via a SPAC deal with Gores Metropoulos II, a blank-check company sponsored by the private-equity firm The Gores Group and the billionaire Dean Metropoulos. The company will also have access to up to $450 million in cash through Gore Metropoulos IIs trust account. In 2020, Sonder had 5,000 units (with contracts for another 7,000). 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. 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. 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. Hospitality - SPAC - Current. The CEOs of Opendoor and Porch saw hefty stock and options in a year when both companies went public. Gores Metropoulos II was formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Goldman Sachs serves as the financial advisor to Sonder, while Morgan Stanley is the lead financial advisor to Gores Metropoulos. Wilson Sonsini Goodrich & Rosati, P.C. 2021. Sonders SPAC deal was first announced in April 2021. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Wu only took $189,584, however, voluntarily donating the rest to a company relief fund for affected employees. Let's find people who are in need of temporary housing, or who don't want to live with their roommates during a pandemic." 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. Global Wealth Conferences - SWFI Event Series, Money Losing, Short Term Rental Platform Sonder Gets Saved by Gores SPAC. 2023. We reported company-record quarterly revenue in Q2 and are eager to pursue continued growth, said Francis Davidson, Co-Founder and CEO of Sonder. It's going to be really interesting to see how we might be able to capture some of that demand.
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