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. Download the Sonder app on Apple or Google Play. 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. 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. In 2020, Sonder says they have 4,565 units. WebSonder Holdings, Inc., a leading next-generation hospitality company, and Gores Metropoulos II, Inc. announce closing of business combination. Jennifer Kwon Chou Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 333-251663), which was declared effective by the SEC on January 19, 2021. 310-209-3010 We are happy to share any additional information with you on request. 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. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. press@sonder.com, Investor Contacts Web10. 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. Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. Money Losing, Short Term Rental Platform Sonder Gets Saved Your submission has been received! Sonder's evolving narrative (2019 Series D pitch deck vs. 2021 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. 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 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. The content should not be considered investment advice and is for educational purposes only. SPACs can then merge with private companies, taking them public in the process. 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. 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. The SPAC that Sonder will merge with, Gores Metropoulos II, raised $450 million in its initial public offering in January. Wilson Sonsini Goodrich & Rosati, P.C. Takeaway: Sonder is expecting insane levels of growth, and despite being in a capital-intensive business, sees a rapid path to profitability. Official notification to shareholders of matters to be brought to a vote ("Proxy") DEF 14A. EBITDA margin going from (181%) in 2020 to 16% in 2025. The hospitality startup, which leases apartments and turns them into furnished, short-term rentals, announced plans to merge with a blank-check firm backed by SPAC pioneers Alec Gores and Dean Metropoulos. The balance of the $450 million in cash is held in GM IIs trust account, in addition to $165 million raised as part of a March 2021 convertible notes offering led by Moore Strategic Ventures, the privately held investment company for Louis M. Bacon, Founder and CEO of Moore Capital Management, LP, together with the approximately $200 million in PIPE proceeds, excluding transaction expenses, will be used to fund operations and support new and existing growth initiatives. Last week, the startup raised $55 million from investors, led by Alkeon Capital Management, with participation from Penny Pritzkers PSP Partners and others. 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. 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. 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. But even outside of the stay, Sonder leverages home-grown technology to optimize backend operations (e.g. We don't think it makes sense to spend several hundred dollars a night for a place to stay. Volt does not purport to provide any legal, tax, or accounting advice. GM II raised $450 million through an initial public offering in January. From an overhead view, how has the pandemic changed things for the business? 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. 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. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. Sonder CEO Explains the $2.2 Billion Company's SPAC Deal Francis Davidson co-founded the company in 2014 while managing several apartments in Montreal as a university student. Sonders SPAC deal was first announced in April 2021. We've always built a really financially diligent company, but we took this to the next level. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. 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. After a record 109 SPAC deals in March, the market cooled with just 10 deals in April, according to SPAC Research. 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. Were excited to watch them continue to expand and reshape guest stays at a global level.. 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. Rental Startup Sonder Agrees to Go Public in $2.2B SPAC Merger ir@sonder.com, For The Gores Group and affiliates: Sonder revenues are rising while its losses are widening, even as SPAC deals are coming under additional pressure. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. On the other side is our expansion into the hotel business. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. With property level profit margins going from (54%) in 2020 to 32% in 2025. 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. 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. The Gores Group The Gores Group 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. As a part of its push into the residential sector, CoStar recently acquired Homesnap for $250 million. Get research, business strategy, and tech analysis delivered to your inbox. 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. Please contact our IR department. Exclusive news, data and analytics for financial market professionals. And improving their Revenue per Available Room (RevPAR) from $74 to $165. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. 99.2 The landlord is funding it. A key takeaway from todays news is that our ambitious growth and expansion strategy remains unchanged and should be fully-funded. Weil, Gotshal & Manges LLP is serving as legal advisor to Gores Metropoulos II. 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. 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. Volt does not purport to provide any legal, tax, or accounting advice. Sonder makes Nasdaq debut following close of SPAC deal 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 2008-2023 Sovereign Wealth Fund Institute. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. WebReports & Presentations. SEC Filings | Sonder Holdings Inc. San Francisco-based Sonder Holdings Inc. (Sonder) officially launched in 2014 and was co-founded by Francis Davidson, Chief Executive Officer, and Martin Picard, Global Head of Real Estate. Shares of Gores Metropoulos II rose 0.5% in afternoon trading on Friday. 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. But in the end, the pandemic didnt cause a housing meltdown or a meaningful deterioration in CEO pay. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. 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. ir@sonder.com 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. 2021, Volt Equity (Volt). He brings nearly two For more information, please visit www.gores.com. And in those cases, it's commonplace in the hospitality industry to have a reserve for capital improvements. 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. British Land, the U.K.s largest REIT, sold its property management platform to Australia-based Equiem. Tomorrow, GMII Gores Metropoulos II shareholders vote on their deal with Sonder (hear the podcast and see our report here). WebExpedia Investor Presentation Deck. 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. 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. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. 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. I sign off in DocuSign on a summary of all the deals. Your goal is to grow quite rapidly and become a leading force in hospitality. 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. The opportunity in residential is so large and our assets have so much potential, CEO Andy Florance said during an earnings call. 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. Leading next 2021, Volt Equity (Volt). It has also pushed back the completion of its reverse merger deal with Gores Metropoulos II, the black check company backed by the Gores Group that is taking it public, from the earlier anticipated close October 28 this year to January 31, 2022, though the two insist they will close the deal by the end of the 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. Content is subject to change without notice. The announcement follows a grueling year for hospitality. The two clear takeaways are: (1) travel is rebounding and (2) Gores and Metropoulos arent worried about the impending regulatory crackdown on SPACs. In conjunction with the round, Guesty said it acquired rival Your Porter just a month after buying MyVR. All Rights Reserved. We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. 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 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. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup, and Deutsche Bank Securities Inc. served as joint lead placement agents on the PIPE. 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. As a company that came to prominence with short-term rentals, can you tell me more about your hotel business? Sonder's TAM, the global lodging market, was $809B in 2019. CEO Francis Davidson co-founded Sonder as a college student in Montreal in 2014. Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. Gores SPACs High Redemptions Signal Worsening Sector Two is that the vast majority of our travelers are domestic, not international. Sonder Investor Presentation (Nov 2021) - All Key Slides 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. Get research, business strategy, and tech analysis delivered to your inbox, Peter Thiel on Identifying Disruptive Companies: 10x Better than Competitors. is serving as legal advisor to Sonder. 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. Investor Presentation Something went wrong while submitting the form. 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. 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. WebReports & Presentations. These margins being driven by post-COVID recovery, better lease agreements, and RevPAR and Property Level Cost initiatives. Funding: Placer.ai, a location-data startup, raised $50 million from Josh Buckley, CEO of Product Hunt; angel investor Todd Goldberg and Rahul Vohra, CEO of Superhuman, an AI-focused email startup. It currently operates more than 300 properties in 35 markets. jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder.