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. There are a lot of organizations that put out forecasts, like Smith Travel Research and CBRE. 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. Content is subject to change without notice. Oops! Thats relatively flat year over year and up $36 million from Q4 2020. We are really proud of what weve achieved to date and want to recognize the dedication of all Sonderites. 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. Something went wrong while submitting the form. For full disclosures, please go to our Terms & Conditions page. Investing involves risk and possible loss of principal capital. Sign up for notifications from Insider! Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. We spoke with Sonder's Francis Davidson about the deal and his outlook on the hospitality industry. served as legal advisor to Sonder. 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. WebLaunched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments It operates over 300 properties in 35 markets, with plans to invest in tech, expand 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. Sonder was last valued at $1.3 billion, after raising $170 million in June. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity The opportunity in residential is so large and our assets have so much potential, CEO Andy Florance said during an earnings call. Overall, CoStar generated $458 million in first-quarter revenue, up 18 percent year over year. 2021. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. 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? To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Your goal is to grow quite rapidly and become a leading force in hospitality. Let's find people who need to relocate. 2008-2023 Sovereign Wealth Fund Institute. We're not acquiring these assets, but we're running a process that's just as thorough. 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. Special purpose acquisition companies are shells that raise funds through an IPO without underlying assets. Sard Verbinnen & Co press@sonder.com, Investor Contacts Please contact our IR department. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. And their 2021 SPAC merger investor presentation here. The hospitality business is expected to have a pro forma enterprise value of $2.2 billion and over $700 million of net cash at closing. 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. The combined company will operate as Sonder Holdings Inc. and will commence trading its common stock and publicly traded warrants on the Nasdaq Global Select Market (Nasdaq) tomorrow under the ticker symbols SOND and SONDW, respectively. All quotes delayed a minimum of 15 minutes. So we think there's actually been a leapfrogging of behavior that maps really closely to the way that we've been operating our business. Sonder. 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. Additional risks and uncertainties are identified and discussed in Gores Metropoulos IIs reports filed with the SEC and available at the SECs website at www.sec.gov. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Management & Research LLC, funds and accounts managed by BlackRock, Atreides Management, LP, and Senator Investment Group (the New PIPEs), in addition to the $200 million previously announced PIPE (the Existing PIPE). 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. We hire and we invest heavily into the communities in which we operate. The landlord is funding it. Weil, Gotshal & Manges LLP served as legal advisor to GM II. We've never thought of positioning the business for a quick acquisition. For Sonder: Sonder reported $116 million in revenue last year, a 19% drop year-over-year. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. And improving their Revenue per Available Room (RevPAR) from $74 to $165. Sonder revenues are rising while its losses are widening, even as SPAC deals are coming under additional pressure. Brokerage giant Realogy struck a massive deal with MoxiWorks, a real estate software startup. These forward-looking statements are based on Gores Metropoulos IIs or Sonders managements current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. And it's typical for the landlord to fund it. In addition to the very compelling narrative and numbers presented in Sonder's investor presentation, Sonder's strategic advantage relative to both incumbents and potential new entrants makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. 2021, Volt Equity (Volt). You can see their 2019 Series D investor pitch deck here. 2020, US$ 116.153 million We've always built a really financially diligent company, but we took this to the next level. It's going to be really interesting to see how we might be able to capture some of that demand. Leading next ir@sonder.com 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. WebReports & Presentations. But Sonder is able to score well on all 3 dimensions. 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. Managing Director We really skew toward Gen Z and millennials, where there's an expectation that these categories will come back. Were excited to watch them continue to expand and reshape guest stays at a global level.. 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. It's like a hybrid of Airbnb and Hilton, turning apartments into hotel suites. After four consecutive quarters in which its profits sagged, the real estate data giant generated $74 million in net income during the first quarter. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. We improved unit economics by having landlords funding all of the investments required for a company to become a Sonder. Today is a historic moment for the entire Sonder team and a testament to how weve revolutionized the hospitality industry by reimagining and delivering what the modern traveler demands. GMII dropped 5.5% today and closed at $8.86. Sign up to our email list so you don't miss a thing. Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Metropoulos & Co. whose Principals are Dean, Evan and Daren Metropoulos. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the Existing PIPE. SAN FRANCISCO & LOS ANGELES--(BUSINESS WIRE)--Sonder Holdings Inc. (Sonder'' or the Company), a leading next-generation hospitality company that is redefining the guest experience through technology and design, and Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW and GMIIU), a special purpose acquisition company formed by affiliates of The Gores Group and Metropoulos & Co., announced strategic amendments to the terms of their previously announced definitive agreement (the Merger Agreement) to combine. From an overhead view, how has the pandemic changed things for the business? Weil, Gotshal & Manges LLP is serving as legal advisor to Gores Metropoulos II. These margins being driven by post-COVID recovery, better lease agreements, and RevPAR and Property Level Cost initiatives. Takeaway: Regarding the 3 dimensions of price, design, and quality consistency, Sonder introduces technology to drive down the price dimension, so that it can score top marks on all 3. Seller Rollover Equity, US$ 2,177 million. Guesty, a property management startup targeting Airbnb hosts, raised $50 million last week. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. We're not cutting a check 90% of the time now when a property opens. Description. 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. The company will also have access to up to $450 million in cash through Gore Metropoulos IIs trust account. We're talking about a cost structure that's roughly, on an operating-cost basis, up to 50% lower than traditional. SPACs are shell companies that raise funds to take a private company public through a merger at a later date. The deal will give Sonder $650 million in cash to scale up. The brand generates $10 million per quarter, CoStar said. We appear to be moving pastthe pandemic disruption. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. Arguably, business is going to take longer to recover. The content should not be considered investment advice and is for educational purposes only. It's a growing share for sure. 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. Forward-looking statements included in this document speak only as of the date of this document. Cosmo Specialty Fibers Sonder Hospitality - SPAC - Current. Hospitality - SPAC - Current. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. San Franciscos short-term rental startup Sonder has lowered its going-public-through-SPAC valuation down to $1.925 billion from the earlier planned $2.2 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. 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. Web10. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. Placers data helped them understand and navigate the change.. Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Sonder. You can read more of our analysis on Sonder's strategic position vs. hotels in this post. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. British Land, the U.K.s largest REIT, sold its property management platform to Australia-based Equiem. On the supply side, the new deals that we struck with real-estate owners meaningfully improved. As previously announced on April 30, 2021, Sonder entered into an agreement to combine with GMII. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Highlights from the presentation are below. Overview | Sonder Holdings Inc. Investor Relations Resources & Information Company Overview Sonder is revolutionizing hospitality through innovative, Oops! We plan to have a multi-part series diving into Sonder's competition, strategy, leadership, and more. Sonder currently operates more than 300 properties across 35 markets in eight countries. Additional information about the proposed Business Combination, including a copy of Amendment No. The Gores Group Takeaway: Given industry multiples and Sonder's growth rate, Sonder's valuation seems like the deal of a lifetime. The company previously raised more than $560 million and is backed by investors 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. 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. 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. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. 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. Form. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.While an option overlay is intended to improve performance, there is no guarantee that it will do so. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. Terms werent disclosed. 2023. 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. Inspirato is the innovative luxury hospitality brand that provides affluent travelers access to a managed and controlled portfolio of hand-selected vacation options, delivered through a subscription model to ensure the service and certainty that affluent customers demand. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup, and Deutsche Bank Securities Inc. served as joint lead placement agents on the PIPE. 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 Sonder is a travel tech and hospitality firm that competes with Airbnb, leasing and managing an array of short-term rental units across 10 countries and three continents. What does that mean for hospitality jobs? GAAP Revenue Francis Davidson co-founded the company in 2014 while managing several apartments in Montreal as a university student. 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). The announcement follows a grueling year for hospitality. Kindred Group plc reports in accordance with IFRS and has calendar year as financial year. 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. 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. April 19, 2023. 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. The startups early investors include BDC Capital, Spark Capital, Thayer Ventures, ScaleUP Ventures, and Real Ventures. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. All Rights Reserved. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. Get research, business strategy, and tech analysis delivered to your inbox. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. 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. GM II raised $450 million through an initial public offering in January. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. press@sonder.com 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. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. Other CEOs followed suit. What we know is that we have a lot of favorable characteristics that would allow us to recover faster. The deal will give the combined entity an enterprise value of about $2.2 billion, according to a statement Friday that confirmed an earlier Bloomberg News report. 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. Moelis & Company LLC acted as additional financial advisor to GM II. Volt does not purport to provide any legal, tax, or accounting advice. We provide modern service through the phone, and we bring quality and standards to the industry. Starting from right to left: Usually a lodging provider would need to make a trade-off in terms of these 3 dimensions of price, design, quality consistency. But even outside of the stay, Sonder leverages home-grown technology to optimize backend operations (e.g. 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. Can you talk me through your decision to go public? WebLatest Presentation For optimal viewing of the presentation, please open the PDF in a new window by clicking the Download PDF button below. So now it's about 50% of our business. Morgan Stanley & Co. LLC served as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup served as capital markets advisors to GM II. The now United States-based company has strong Canadian roots. 1); (c) the ability to meet Nasdaqs listing standards following the consummation of the proposed Business Combination; (d) the inability to complete the Existing PIPE or the New PIPEs; (e) the risk that the proposed Business Combination disrupts current plans and operations of Sonder or its subsidiaries as a result of the announcement and consummation of the transactions described herein; (f) the ability to recognize the anticipated benefits of the proposed Business Combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (g) costs related to the proposed Business Combination; (h) changes in applicable laws or regulations, including legal or regulatory developments (such as the SECs recently released statement on accounting and reporting considerations for warrants in SPACs) which could result in the need for Gores Metropoulos II to restate its historical financial statements and cause unforeseen delays in the timing of the Business Combination and negatively impact the trading price of Gores Metropoulos IIs securities and the attractiveness of the Business Combination to investors; (i) the possibility that Sonder may be adversely affected by other economic, business and/or competitive factors; (j) the inability of Sonder to enter into definitive documentation with respect to the Delayed Draw Notes prior to closing, and (k) other risks and uncertainties indicated from time to time in the final prospectus of Gores Metropoulos II, including those under Risk Factors therein, and other documents filed or to be filed with the Securities and Exchange Commission (SEC) by Gores Metropoulos II. Equipping the balance sheet with hundreds of millions of dollars through this transaction allows us to do that in a way that is super financially sound and finances a plan that can bring really rapid growth and investments in technology we think are really going to pay off big time. The Registration Statement is not yet effective. 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. It's joining others in the real-estate tech world, such as WeWork, iBuyer Opendoor, and property-management technology company SmartRent. Peter Thiel on Identifying Disruptive Companies: 10x Better than Competitors. 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. 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. View. GORES HOLDINGS IX, INC. Gores Holdings IX, Gores fourteenth special purpose acquisition company, completes $525 Million IPO. Sonder the lodging startup known for turning properties into short-term rental buildings is going public via a special acquisition company (SPAC), Gores Metropoulos II, that values the newly combined company at $2.2 billion, Sonder announced Friday.. Messrs. Gores and Metropoulos together have over 100 years of combined experience as entrepreneurs, operators and investors across diverse sectors including industrials, technology, media and entertainment, business services, healthcare and consumer products and services. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. 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. Media Contacts You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Gores Group, a prolific dealmaker in the space, has raised 13 special purpose acquisition companies (SPACs) so far. 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 Sonder app gives guests full control over their stay. We are happy to share any additional information with you on request. Additional Information and Where to Find It. 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. Its analytics can be used to ensure workers comply with safety standards; managers can use it to benchmark performance. 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. In this space you will find all of our financial reports, presentations, webcasts and relevant video material.

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