Sonder. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. 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. 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 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. 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. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. CEO Francis Davidson co-founded Sonder as a college student in Montreal in 2014. Special purpose acquisition companies are shells that raise funds through an IPO without underlying assets. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. All quotes delayed a minimum of 15 minutes. His coverage is more complete than his moustache. 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. We should be conservative.". Oops! Thats due to the leadership and staff who built a flexible model thats been proven at scale, Roberts told BetaKit. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. Additional Information and Where to Find It. After a record 109 SPAC deals in March, the market cooled with just 10 deals in April, according to SPAC Research. The company says it has 500 customers, including JLL, retail center operators Brixmor and Taubman, along with Planet Fitness and Dollar General. 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. As previously announced on April 30, 2021, Sonder entered into an agreement to combine with GMII. 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). Last week, the startup raised $55 million from investors, led by Alkeon Capital Management, with participation from Penny Pritzkers PSP Partners and others. Investor Contacts Thank you! 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. For full disclosures, please go to our Terms & Conditions page. 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. Why are landlords willing to fund that much capital expenditure? 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. Two years later, the firm moved its headquarters to San Francisco and incorporated in the US, in pursuit of international investors. These amendments and associated incremental investments by leading institutional investors to adapt to current market conditions strongly position Sonder for long-term growth, and underscore Sonders and Gores Metropoulos IIs collective commitment to driving long-term value creation for all stockholders. Gores Metropoulos II is a SPAC sponsored by an affiliate of The Gores Group, a Beverly Hills-based global investment firm. Existing Sonder stockholders will retain 74% ownership in the pro forma company. Forward-looking statements included in this document speak only as of the date of this document. 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 startups software lets hosts manage listings, communicate with tenants, process payments and send push notifications. 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. We don't think it makes sense to spend several hundred dollars a night for a place to stay. When available, the definitive proxy statement/consent solicitation statement/prospectus will be mailed to Gores Metropoulos II stockholders as of a record date to be established for voting on the proposed Business Combination and the other matters to be voted upon at the Special Meeting. The landlord is funding it. 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. For more information, please visit www.gores.com. 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. 1, will be provided in a Current Report on Form 8-K which will be filed by Gores Metropoulos II with the SEC and will also be available at www.sec.gov. Many services like the front desk, concierge, customer service, cleaning are replaced with their app. 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. Get the latest news about hotels and short-term rentals delivered to your inbox once a week. All Rights Reserved. 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. 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. Hospitality startup will reap $650 million, notches $2.2 billion valuation, Sonder co-founder Francis Davidson (Sonder, iStock). 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. Earlier this month, the firm said it would buy Homes.com for $156 million. 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. EBITDA margin going from (181%) in 2020 to 16% in 2025. In 2020, Sonder had 5,000 units (with contracts for another 7,000). One is the fact that our guests are much more leisure-oriented: 80% of our guests were leisure. What we know is that we have a lot of favorable characteristics that would allow us to recover faster. 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. Filing date. served as legal advisor to Sonder. 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. 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). Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder. 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 One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In connection with the proposed Business Combination, Gores Metropoulos II has filed a registration statement on Form S-4 (the Registration Statement) that includes a preliminary proxy statement, consent solicitation statement and prospectus with respect to Gores Metropoulos IIs securities to be issued in connection with the proposed Business Combination that also constitutes a preliminary prospectus of Gores Metropoulos II and will mail a definitive proxy statement/consent solicitation statement/prospectus and other relevant documents to its stockholders. There are a lot of organizations that put out forecasts, like Smith Travel Research and CBRE. We bring beautiful spaces to life. Leading next Sonder's CEO called the listing a historic moment for the company. It currently operates 8,000 (with contracts for 10,000 more). Chris Mammone, The Blueshirt Group 2021, Volt Equity (Volt). The past 2 years have been a hard journey for the hospitality industry and Sonder not only survivedthey thrived, said ScaleUP Ventures Partner Matt Roberts, an early investor in Sonder through both BDC and later, ScaleUP. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. The company currently operates in 70 countries, and CEO Amiad Soto said the funding will go toward market and tech expansion. 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. 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. 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.. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. Seller Rollover Equity, US$ 2,177 million. We reported company-record quarterly revenue in Q2 and are eager to pursue continued growth, said Francis Davidson, Co-Founder and CEO of Sonder. Can you talk me through your decision to go public? jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi Additional information about the proposed Business Combination, including a copy of Amendment No. Wilson Sonsini Goodrich & Rosati, P.C. 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. Javascript is required for this site to display correctly. Sign up to our email list so you don't miss a thing. Sonder projected it will have 77,000 units within five years. 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. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The now United States-based company has strong Canadian roots. As a company that came to prominence with short-term rentals, can you tell me more about your hotel business? Last year, OpenSpaces maps more than came in handy. Gores Group, a prolific dealmaker in the space, has raised 13 special purpose acquisition companies (SPACs) so far. real estate targeting, warehouse and inventory management, logistics planning, etc.). Sonders SPAC deal was first announced in April 2021. Your submission has been received! 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. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. All material subject to strictly enforced copyright laws. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. 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. 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. 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. After the tough year that we've been through, there's one approach, which is stepping back and saying, "Hey, this is rough. The vast majority, around 80%, of our guests are less than 50 years old. Form. Jennifer Kwon Chou View. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Our view was that we wanted to lean into the recovery. 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. We think the current online players are overly focused on capturing agents fees.. WebSeptember 27, 2007 - The Gores Group, LLC and Investors Complete Purchase of Compudyne Corporation; August 7, 2007 - Compudyne Corporation Agrees to be Acquired by Investor Group for $7.00 Per Share in Cash . WebSonder Holdings, Inc., a leading next-generation hospitality company, and Gores Metropoulos II, Inc. announce closing of business combination. 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. 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. 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 What does that mean for hospitality jobs? It proved to be really successful: We managed to bring occupancy rates back to pre-pandemic levels quite rapidly. 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.
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