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. And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. 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. The startups software lets hosts manage listings, communicate with tenants, process payments and send push notifications. Forward-looking statements in this release include, but are not limited to, the closing of the drawdown on Sonders Delayed Draw Notes, the commencement of trading of Sonders common stock and publicly traded warrants on Nasdaq, Sonders beliefs regarding its current and future financial position, Sonders beliefs regarding its future financial and operating results and growth and the effect of the COVID-19 pandemic, its timing of recovery and the pandemics impact to Sonders business and financial position. Opendoor tapped Squares Mike Cieri as vice president of product for its buyer team. Kindred Group plc reports in accordance with IFRS and has calendar year as financial year. The Sonder app gives guests full control over their stay. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. It projected $4 billion in revenues in 2025, and profitability in 2023 when it forecast $24.2 million in EBITDA. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. In terms of real estate supply availability, Sonder has just scratched the surface with only 0.8% of new apartment units to be contracted in their current US markets, and only 1.8% of global hotel units to be contracted. 2019, US$ 142.908 million It operates over 300 properties in 35 markets, with plans to invest in tech, expand Finsbury Glover Hering OR 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. 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. The San-Francisco-based company was in talks with Gores about going public in Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed Business Combination will be included in the Registration Statement that Gores Metropoulos II intends to file with the SEC. 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. Highlights from the presentation are below. And their expected growth rate is also head and shoulders above the median of each of those industries. April 30 (Reuters) - Lodging startup Sonder, which offers refurbished properties for short-term rentals, has agreed to go public through merging with a blank-check firm backed by billionaire investors Alec Gores and Dean Metropoulos that values the combined company at around $2.2 billion. is serving as legal advisor to Sonder. April 19, 2023. New PIPE Investment, US$ 200 million 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. 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. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the PIPE. We think that the combination of this incremental capital and our proactive response to changing market dynamics will put us in the best position to drive long-term value creation for our shareholders and employees., Alec Gores, the buyout sponsor of the deal, told New York Times that the market has shifted and we totally get that[a]s long as you have a great company, the market is going to go in 100 different ways, and we just have to be smart enough to recognize where the market is.. Last year, OpenSpaces maps more than came in handy. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. u2014 CoStar CEO Andy Florance. We can show the value proposition on a spreadsheet. Moelis & Company LLC acted as additional financial advisor to Gores Metropoulos II. Additional information about the proposed Business Combination, including a copy of Amendment No. 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. 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. No affiliation or endorsement, express or implied, is provided by their use. Thats due to the leadership and staff who built a flexible model thats been proven at scale, Roberts told BetaKit. Sard Verbinnen & Co Gores is taking Sonder public. 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. We're not acquiring these assets, but we're running a process that's just as thorough. Sonder forecasts their 2025 GAAP revenue to grow to a whopping $4B at a 103% CAGR (2020-2025). Join the Industrys Brightest Minds in New York City, Business Travelers: A Multi-Country Survey Report, Hotel Tech Benchmark: Booking Engines, Website Builders, and Direct Booking Tools 2023. WebLatest Presentation For optimal viewing of the presentation, please open the PDF in a new window by clicking the Download PDF button below. Sonders common shares are currently trading on the Nasdaq under the symbol SOND, at a price of $8.61 USD. Javascript is required for this site to display correctly. For full disclosures, please go to our Terms & Conditions page. He brings nearly two Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup, and Deutsche Bank Securities Inc. served as joint lead placement agents on the PIPE. It projected $4 billion in revenues in 2025, and The company scored a valuation of $2.2 billion in the deal and expects to reap $650 million in the offering, Reuters reported. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. 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's going to be really interesting to see how we might be able to capture some of that demand. Your submission has been received! The 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. 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. SWFI is a minority-owned organization. Gores Metropoulos II, Inc. (Nasdaq: GMIIU, GMII and GMIIW), 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 Dean Metropoulos of Metropoulos & Co., announced that they have entered into a definitive agreement to combine with Sonder. Sonder's evolving narrative (2019 Series D pitch deck vs. 2021 investor presentation) It's interesting to see how Sonder's narrative has evolved from when they Sign up to our email list so you don't miss a thing. 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're a design company. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Finsbury Glover Hering In 2020, Sonder had 5,000 units (with contracts for another 7,000). Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. You can read more of our analysis on Sonder's strategic position vs. hotels in this post. But in the end, the pandemic didnt cause a housing meltdown or a meaningful deterioration in CEO pay. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. 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. 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. 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. Second-home startup Pacaso hired as head of industry relations. In conjunction with the round, Guesty said it acquired rival Your Porter just a month after buying MyVR. See here for a complete list of exchanges and delays. We're talking about a cost structure that's roughly, on an operating-cost basis, up to 50% lower than traditional. 2021. We are really proud of what weve achieved to date and want to recognize the dedication of all Sonderites. The San Francisco-based travel tech and hospitality company has strong Canadian roots. CoStars profit machine is back in action. Something went wrong while submitting the form. Proptech was no exception, with 15 new SPACs in February followed by 16 in March and just one so far in April, according to TRDs SPAC tracker. 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. Web10. For more information, please visit www.gores.com. In 2020, CoStars Andy Florance was compensated $21.3 million, according to the companys recently filed proxy statement. Download the Sonder app on Apple or Google Play. It currently operates 8,000 (with contracts for 10,000 more). 333-251663), which was declared effective by the SEC on January 19, 2021. 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. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. 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. OpenSpace, founded in 2017, uses AI and cameras affixed to workers hardhats, to provide 360-degree images of job sites. Sonder recently took over the Flatiron Hotel in New York City as part of its model to lease, refurbish and rent short- and medium-stay rooms. And in those cases, it's commonplace in the hospitality industry to have a reserve for capital improvements. For The Gores Group and affiliates: 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. Amid a rebound in leisure travel demand, Sonder reported record quarterly revenue and year-over-year (YoY) growth in the third quarter of 2021, with revenue of $67.5 milliona 155 percent YoY increase, and a 43 percent increase compared to Q2 of last year. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. On the supply side, the new deals that we struck with real-estate owners meaningfully improved. Sonder's TAM, the global lodging market, was $809B in 2019. Moelis & Company LLC acted as additional financial advisor to GM II. Our mission is really one of democratization here. For full disclosures, please go to our Terms & Conditions page. We spoke with Sonder's Francis Davidson about the deal and his outlook on the hospitality industry. 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. 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. Thank you! 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. UPDATE: SONDER. The father and son were also co-founders of BlueTail, a social media marketing startup acquired by Salesforce in 2012. From an overhead view, how has the pandemic changed things for the business? Sonders SPAC deal was first announced in April 2021. "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. As part of the transaction, Sonder and GMII raised a $200 million fully committed PIPE, led by an affiliate of The Gores Group, with participation from top-tier institutional investors, including Fidelity Management & Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. Revenue tripled, the company said. 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. 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. Goldman Sachs serves as the financial advisor to Sonder, while Morgan Stanley is the lead financial advisor to Gores Metropoulos. The Registration Statement, including the proxy statement/consent solicitation statement/prospectus contained therein, when it is declared effective by the SEC, will contain important information about the proposed Business Combination and the other matters to be voted upon at a meeting of Gores Metropoulos IIs stockholders to be held to approve the proposed Business Combination and other matters (the Special Meeting) and is not intended to provide the basis for any investment decision or any other decision in respect of such matters. Click here to join the thousands of knowledgeable readers who subscribe to Future City. The company previously raised more than $560 million and is backed by investors British Land, the U.K.s largest REIT, sold its property management platform to Australia-based Equiem. Many services like the front desk, concierge, customer service, cleaning are replaced with their app. Driven in part by increasing supply from 12k total units (live + contracted) in 2020 to 102k total units in 2025. I noticed in the investor presentation that they were mentioned, and I also know that you yourself have spent some time living as a digital nomad. |, Sonder makes Nasdaq debut following close of SPAC deal, 0 replies on Sonder makes Nasdaq debut following close of SPAC deal, Support BetaKit and independent Canadian tech journalism, Sonder lowers valuation, expectations for SPAC deal amid market conditions, All signs point to Montral as home of Sonders second headquarters, Revisiting BlackBerrys extraordinary rise and spectacular fall, Banking apps Pillar and Billi shut down as funding dries up for FinTech businesses, As Bill C-11 passes, YouTube influencers, content creators express concern while Big Tech quiet. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Three is demographics. Access exclusive travel research, data insights, and surveys. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. Sonder projected it will have 77,000 units within five years. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. 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. Plus, a startup that tracks our cell phones raised $50M. The Sonder app gives guests full control over their stay. 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). What are you expecting to see in hospitality this year? real estate targeting, warehouse and inventory management, logistics planning, etc.). 2021. Tomorrow, GMII Gores Metropoulos II shareholders vote on their deal with Sonder (hear the podcast and see our report here).
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