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. 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. Sonder announced that it's going public via a SPAC deal that values the company at $2.2 billion. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. The announcement follows a grueling year for hospitality. The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. 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. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. GAAP Revenue 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. But in the end, the pandemic didnt cause a housing meltdown or a meaningful deterioration in CEO pay. OR 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. However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. It also gave a peek at its pipeline of units. 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. Their view is that we'll see a full recovery of revenue per available room by 2023 or 2024, depending on the market. Cosmo Specialty Fibers Sonder Hospitality - SPAC - Current. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Sonder had to lay off or furlough one-third of its workforce last spring, while some of its highest-profile competitors were forced to shutter (Lyric) or pivot their business models after layoffs (Zeus Living). 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. 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 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. Exclusive news, data and analytics for financial market professionals. From an overhead view, how has the pandemic changed things for the business? It projected $4 billion in revenues in 2025, and profitability in 2023 when it forecast $24.2 million in EBITDA. Description. It's a growing share for sure. 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. Web10. Moelis & Company LLC acted as additional financial advisor to Gores Metropoulos II. It's going to be really interesting to see how we might be able to capture some of that demand. Corporate Demand Guided Expansion Strategy Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. Yet, their recent historical growth rate has been MUCH higher than the median of each of those industries. Morgan Stanley & Co. LLC served as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup served as capital markets advisors to GM II. It operates over 300 properties in 35 markets, with plans to invest in tech, expand Compass acquired digital closing startup Glide for an undisclosed sum. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. UPDATE: SONDER. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. Now, Sonder is joining a SPAC wave that's seen deals surge to record highs this year, though momentum has slowed in recent weeks. There might not be a better time, in the history of hospitality, to bring our revolutionary concept to the forefront. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. 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. WebThe Investor Relations website contains information about Sonder Holdings Inc.'s business for stockholders, potential investors, and financial analysts. Second-home startup Pacaso hired as head of industry relations. Our Standards: The Thomson Reuters Trust Principles. 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. In 2020, CoStars Andy Florance was compensated $21.3 million, according to the companys recently filed proxy statement. 2021. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. April 19, 2023. Opendoor tapped Squares Mike Cieri as vice president of product for its buyer team. The company projects GAAP revenue, a standardized accounting measure, to increase from $116 million last year to almost $4 billion in 2025. 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. SPACs are shell companies that raise funds to take a private company public through a merger at a later date. Something went wrong while submitting the form. Media Contacts Can you talk me through your decision to go public? In 2020, Sonder had 5,000 units (with contracts for another 7,000). Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. Kindred Group plc reports in accordance with IFRS and has calendar year as financial year. Wilson Sonsini Goodrich & Rosati, P.C. No affiliation or endorsement, express or implied, is provided by their use. All this allows them to cut down on operating costs by as much as ~50%. 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. The results presented should not be viewed as indicative of the adviser skill and do not reflect the performance results that were achieved by any particular client. Gores is taking Sonder public. We've always built a really financially diligent company, but we took this to the next level. This press release contains a number of forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 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. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. However, over the last couple of years, Sonder has begun to expand its presence in Montral once more. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. 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. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement (as amended by that certain Amendment No. We hire and we invest heavily into the communities in which we operate. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. 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. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. Weil, Gotshal & Manges LLP is serving as legal advisor to Gores Metropoulos II. Before, we had to make the pitch that the lobby should be on your phone and you should be able to do everything there. The industry leader for online information for tax, accounting and finance professionals. Moelis & Company LLC acted as additional financial advisor to GM II. The idea is that Sonder is not a short-term-rental company. 2021, Volt Equity (Volt). There's no Sonder city where there's no Sonder employees, so we do provide meaningful employment. Its analytics can be used to ensure workers comply with safety standards; managers can use it to benchmark performance. Volt does not purport to provide any legal, tax, or accounting advice. Download the Sonder app on Apple or Google Play. 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). 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. 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). And their 2021 SPAC merger investor presentation here. The new funding raised will help continue to focus on building the company and hopefully keep the economics in check enough to complete the deal. 333-251663), which was declared effective by the SEC on January 19, 2021. 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. 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. I think it's really important to underscore that we are a technology meets operations company. You can read more of our analysis on Sonder's strategic position vs. hotels in this post. 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. 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 We have a lot of processes that are frankly akin to an investment committee at a private-equity firm. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. View. The content should not be considered investment advice and is for educational purposes only. The full filing with the amended merger agreement is here. The deal will give Sonder $650 million in cash to scale up. GORES HOLDINGS IX, INC. Gores Holdings IX, Gores fourteenth special purpose acquisition company, completes $525 Million IPO. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. We're not cutting a check 90% of the time now when a property opens. Your submission has been received! In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Takeaway: Given industry multiples and Sonder's growth rate, Sonder's valuation seems like the deal of a lifetime. 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. The combined company will operate as Sonder Holdings, while Sonders common stock and publicly traded warrants will trade on the Nasdaq Global Select Market today under the ticker symbols SOND and SONDW, respectively. Stanza Living, an India-based co-living company, raised a $102M Series B. For full disclosures, please go to our Terms & Conditions page. 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? 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. ir@sonder.com 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. An additional $200 million is expected from private investors including BlackRock, Fidelity Management & Research and Senator Investment Group. As a company that came to prominence with short-term rentals, can you tell me more about your hotel business? To ensure the most secure and best overall experience on our website, we recommend the latest versions of. We have an exceptional team in place to drive the next chapters of growth for our organization., We continue to lead and innovate with our tech-enabled offering, inspiring design, consistent quality, and compelling value that are the hallmarks of a great modern hospitality experience, said Sanjay Banker, President and Chief Financial Officer of Sonder. 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. 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. Click here to join the thousands of knowledgeable readers who subscribe to Future City. 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. The pandemic was such a black-swan event that now we are even more robust when it comes to down-side investment. The opportunity in residential is so large and our assets have so much potential, CEO Andy Florance said during an earnings call. But Sonder is able to score well on all 3 dimensions. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) 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 real estate owners and developers, guests and suppliers and retain its management and key employees; (b) changes in applicable laws or regulations, including legal or regulatory developments (such as changes in local laws affecting hotels, apartments and other accommodation and regulatory developments related to special purpose acquisition companies); (c) the possibility that Sonder may be adversely affected by other economic, business and/or competitive factors; (d) risks related to the impact of the COVID-19 pandemic, including the Omicron and other variants and potential governmental and other restrictions (including travel restrictions) resulting therefrom; and (e) other risks and uncertainties described in the final proxy statement/prospectus/consent solicitation statement, including those under the heading Risk Factors therein, and other documents filed by the Company from time to time with the SEC. 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. 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. Sign up to our email list so you don't miss a thing. 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 Gores Metropoulos IIs or Sonders managements control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. 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. 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. Sonder's CEO called the listing a historic moment for the company. The now United States-based company has strong Canadian roots. It currently operates 8,000 (with contracts for 10,000 more). The Sonder app gives guests full control over their stay. 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%. For proof that travel is back, look no further than Sonders $2.2 billion SPAC deal. Official notification to shareholders of matters to be brought to a vote ("Proxy") DEF 14A. WebSonder Holdings, Inc., a leading next-generation hospitality company, and Gores Metropoulos II, Inc. announce closing of business combination. 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.