Your submission has been received! It's joining others in the real-estate tech world, such as WeWork, iBuyer Opendoor, and property-management technology company SmartRent. Last year, OpenSpaces maps more than came in handy. Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. Goldman Sachs serves as the financial advisor to Sonder, while Morgan Stanley is the lead financial advisor to Gores Metropoulos. Sonder announced that it's going public via a SPAC deal that values the company at $2.2 billion. It currently operates 8,000 (with contracts for 10,000 more). 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. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. Investing involves risk and possible loss of principal capital. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. 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. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. All quotes delayed a minimum of 15 minutes. 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. Your submission has been received! It also gave a peek at its pipeline of units. 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. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. Gores Metropoulos II, Sonder and their respective directors and officers may be deemed participants in the solicitation of proxies of Company stockholders in connection with the proposed Business Combination. The content should not be considered investment advice and is for educational purposes only. 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. Francis Davidson, Sonders co-founder and CEO, called the listing a historic moment for the company, adding that it is a testament to how weve revolutionized the hospitality industry by reimagining and delivering what the modern traveler demands.. 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. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the PIPE. Description. Get research, business strategy, and tech analysis delivered to your inbox. 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.. Below are the highlights from the presentation. WebLatest Presentation For optimal viewing of the presentation, please open the PDF in a new window by clicking the Download PDF button below. Please contact our IR department. 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. However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. 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. 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. 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. And their 2021 SPAC merger investor presentation here. Earlier this month, the firm said it would buy Homes.com for $156 million. 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. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. You can read more of our analysis on Sonder's strategic position vs. hotels in this post. 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. 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. Revenue tripled, the company said. Now, roughly 50% of our growth is conversion of independent hotels into Sonder hotels. 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. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Gores Metropoulos II stockholders in connection with the proposed Business Combination and other matters to be voted upon at the Special Meeting will be set forth in the Registration Statement for the proposed Business Combination when available. The CEOs of Opendoor and Porch saw hefty stock and options in a year when both companies went public. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. Volt does not purport to provide any legal, tax, or accounting advice. Access exclusive travel research, data insights, and surveys. Your goal is to grow quite rapidly and become a leading force in hospitality. See here for a complete list of exchanges and delays. We are happy to share any additional information with you on request. 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. WebReports & Presentations. Arguably, business is going to take longer to recover. Except as required by law, neither Gores Metropoulos II nor Sonder undertakes any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this release. 2022. Sonder will be scheduling a bell ringing ceremony with Nasdaq at a later date to formally celebrate its public listing. CoStars profit machine is back in action. 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 company scored a valuation of $2.2 billion in the deal and expects to reap $650 million in the offering, Reuters reported. 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, 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 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. "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. SPACs are shell companies that raise funds to take a private company public through a merger at a later date. The two clear takeaways are: (1) travel is rebounding and (2) Gores and Metropoulos arent worried about the impending regulatory crackdown on SPACs. In 2020, CoStars Andy Florance was compensated $21.3 million, according to the companys recently filed proxy statement. Something went wrong while submitting the form. No affiliation or endorsement, express or implied, is provided by their use. 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. 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. 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. GAAP Revenue Oops! Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Were excited to watch them continue to expand and reshape guest stays at a global level.. But even outside of the stay, Sonder leverages home-grown technology to optimize backend operations (e.g. It currently operates more than 300 properties in 35 markets. San Francisco-based Sonder Holdings Inc. (Sonder) officially launched in 2014 and was co-founded by Francis Davidson, Chief Executive Officer, and Martin New PIPE Investment, US$ 200 million 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. CEO Francis Davidson co-founded Sonder as a college student in Montreal in 2014. 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. This press release contains a number of forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. OR And Adj. 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. The full filing with the amended merger agreement is here. 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. WebInvestor presentation The Gores SPAC franchise has a stellar track record Proven SPAC track record Alignment with key stakeholders An attractive opportunity for prospective targets Note: An investment in Gores Guggenheim or Polestar is not an investment in any other current or previous special purpose acquisition company sponsored by affiliates of Our view was that we wanted to lean into the recovery. Shares of Gores Metropoulos II rose 0.5% in afternoon trading on Friday. Sonder's CEO called the listing a historic moment for the company. 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. 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.. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. Sign up to our email list so you don't miss a thing. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. 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. ir@sonder.com 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. And it's typical for the landlord to fund it. The deal will give Sonder $650 million in cash to scale up. Download the Sonder app on Apple or Google Play. Why are landlords willing to fund that much capital expenditure? Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. Gores Metropoulos II stockholders and other interested persons are advised to read, when available, the Registration Statement and the proxy statement/consent solicitation statement/prospectus, as well as any amendments or supplements thereto, because they will contain important information about the proposed Business Combination. SPACs can then merge with private companies, taking them public in the process. 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. Brokerage giant Realogy struck a massive deal with MoxiWorks, a real estate software startup. The Series D was led by Apax Digital Fund and brings Guestys total funding to more than $110 million. served as legal advisor to Sonder. It projected $4 billion in revenues in 2025, and The company projects GAAP revenue, a standardized accounting measure, to increase from $116 million last year to almost $4 billion in 2025. 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 Kindred Group plc reports in accordance with IFRS and has calendar year as financial year. 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. And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. 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. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. 2019, US$ 142.908 million His coverage is more complete than his moustache. 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. After the tough year that we've been through, there's one approach, which is stepping back and saying, "Hey, this is rough. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. There are some luxury hotels that do a great job, but it would be way better if those kinds of experiences were accessible to the many. ir@sonder.com, For The Gores Group and affiliates: Sanford also took a smaller salary $656,480 instead of $1.5 million. 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%. There might not be a better time, in the history of hospitality, to bring our revolutionary concept to the forefront. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Sonder was last valued at $1.3 billion, after raising $170 million in June. Second-home startup Pacaso hired as head of industry relations. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Sonder's TAM, the global lodging market, was $809B in 2019. 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). 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. Moreover, Sonder has signed a non-binding term sheet for Delayed Draw Notes of $220 million with existing PIPE investors, to be available following the closing of the proposed business combination, which enables the Company to fund its growth over the next several years. 2021. SPAC Cash in Trust, US$ 450 million We're a design company. 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. 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. Yet, their recent historical growth rate has been MUCH higher than the median of each of those industries. View. 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. Compass acquired digital closing startup Glide for an undisclosed sum. All Rights Reserved. The company previously raised more than $560 million and is backed by investors Sonder's pre-SPAC merger investor presentation outlined the narrative and future of Sonder with surprising transparency. 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. SAN FRANCISCO & LOS ANGELES-- ( BUSINESS WIRE )--Sonder Holdings Inc. (Sonder'' or the Company), a leading next-generation hospitality All this allows them to cut down on operating costs by as much as ~50%. It projected $4 billion in revenues in 2025, and profitability in 2023 when it forecast $24.2 million in EBITDA. We should be conservative.". The SPAC that Sonder will merge with, Gores Metropoulos II, raised $450 million in its initial public offering in January. Their view is that we'll see a full recovery of revenue per available room by 2023 or 2024, depending on the market. The father and son were also co-founders of BlueTail, a social media marketing startup acquired by Salesforce in 2012. The company says it has 500 customers, including JLL, retail center operators Brixmor and Taubman, along with Planet Fitness and Dollar General. We're not cutting a check 90% of the time now when a property opens. Wu only took $189,584, however, voluntarily donating the rest to a company relief fund for affected employees. We provide modern service through the phone, and we bring quality and standards to the industry. Gores Group, a prolific dealmaker in the space, has raised 13 special purpose acquisition companies (SPACs) so far. And improving their Revenue per Available Room (RevPAR) from $74 to $165. Sonder continues to generate impressive results amid the ongoing recovery of the travel industry and is well positioned for future growth given their unique value proposition. When the country went into lockdown last year, OpenSpace allowed construction bosses to monitor essential jobs remotely with its site-mapping tool. 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. We appear to be moving pastthe pandemic disruption. 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. The now United States-based company has strong Canadian roots. Finsbury Glover Hering The company currently operates in 70 countries, and CEO Amiad Soto said the funding will go toward market and tech expansion. 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. Also, Sonder has access to $220 million debt facility with existing PIPE investors, to be available following the closing of the merger, which Sonder says will be enough to fund its growth over the next several years. 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. As part of the amended terms of the transaction, the combined companys implied pro forma enterprise value will be $1.925 billion. In 2020, Sonder had 5,000 units (with contracts for another 7,000). Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder. Zonda acquired BuzzBuzzHome, a new development listing site, for an undisclosed sum. Weil, Gotshal & Manges LLP is serving as legal advisor to GM II. Sonder illustrates the downfall of 3 different product offerings in the lodging and travel space today. 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. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. Sonder also expects to have approximately $310 million in private investment in public equity (PIPe) proceeds, up to $450 million in cash in Gores Metropoulos II's trust account and $165 million of delayed draw notes to fund operations and support new and existing growth initiatives. GM II raised $450 million through an initial public offering in January. 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. We don't think it makes sense to spend several hundred dollars a night for a place to stay. The idea is that Sonder is not a short-term-rental company. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Francis Davidson co-founded the company in 2014 while managing several apartments in Montreal as a university student. 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. Goldman Sachs is advising Sonder, and Morgan Stanley is the leading adviser to Gores Metropoulos II. Moelis & Company LLC acted as additional financial advisor to GM II. WebSonder Holdings, Inc., a leading next-generation hospitality company, and Gores Metropoulos II, Inc. announce closing of business combination. For Sonder: WebCombination with Gores Metropoulos II . 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.
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