Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. Managing Director The father and son were also co-founders of BlueTail, a social media marketing startup acquired by Salesforce in 2012. 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. On top of that, I think the benefit of our technology here is that it allows us to provide a really elevated stay at a much more affordable price point. Javascript is required for this site to display correctly. 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. It proved to be really successful: We managed to bring occupancy rates back to pre-pandemic levels quite rapidly. Sonder. SPACs can then merge with private companies, taking them public in the process. For more information, please visit www.gores.com. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Takeaway: Sonder is expecting insane levels of growth, and despite being in a capital-intensive business, sees a rapid path to profitability. 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. Two is that the vast majority of our travelers are domestic, not international. It projected $4 billion in revenues in 2025, and 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. Placer operates on a subscription model, and Ben-Zvi said it tripled its revenue in 2020 as customers sought data to guide decisions during the pandemic. We are happy to share any additional information with you on request. Volt does not purport to provide any legal, tax, or accounting advice. Special purpose acquisition companies are shells that raise funds through an IPO without underlying assets. For The Gores Group and affiliates: Before, we had to make the pitch that the lobby should be on your phone and you should be able to do everything there. 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 & However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. 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. 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. Get research, business strategy, and tech analysis delivered to your inbox. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. I think it's really important to underscore that we are a technology meets operations company. 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. GMII dropped 5.5% today and closed at $8.86. Sonder works directly with real estate developers and property owners to lease, manage and operate spaces, providing guests with exceptionally designed accommodations at affordable prices on a nightly, weekly or monthly basis. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the PIPE. 2019, US$ 142.908 million 310-209-3010 What does that mean for hospitality jobs? Volt does not purport to provide any legal, tax, or accounting advice. 1)) and the proposed Business Combination contemplated thereby; (b) the inability to complete the proposed Business Combination due to the failure to obtain approval of the stockholders of Gores Metropoulos II or other conditions to closing in the Merger Agreement (as amended by Amendment No. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup, and Deutsche Bank Securities Inc. served as joint lead placement agents on the PIPE. Morgan Stanley & Co. LLC served as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup served as capital markets advisors to GM II. The SPAC attack is back for a San Francisco-based hospitality startup. Moelis & Company LLC acted as additional financial advisor to GM II. We hire and we invest heavily into the communities in which we operate. All pictures below are taken from Sonder's investor presentation, the entirety of which can be downloaded from Sonder's investor relations page. 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 $2.2 billion, Sonder announced Friday.. SPAC Cash in Trust, US$ 450 million Content is subject to change without notice. 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. 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. In conjunction with the round, Guesty said it acquired rival Your Porter just a month after buying MyVR. Sonder's pre-SPAC merger investor presentation outlined the narrative and future of Sonder with surprising transparency. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. He brings nearly two is serving as legal advisor to Sonder. 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. 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. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. The now United States-based company has strong Canadian roots. And in those cases, it's commonplace in the hospitality industry to have a reserve for capital improvements. The company previously raised more than $560 million and is backed by investors For more information, please visit www.gores.com. u2014 CoStar CEO Andy Florance. Official notification to shareholders of matters to be brought to a vote ("Proxy") DEF 14A. This interview has been edited for length and clarity. Sonder revenues are rising while its losses are widening, even as SPAC deals are coming under additional pressure. Download the Sonder app on Apple or Google Play. But Sonder is able to score well on all 3 dimensions. The way Sonder achieves this is through cutting out the fat in the hospitality industry through technology. There's nothing like it. 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. The startups early investors include BDC Capital, Spark Capital, Thayer Ventures, ScaleUP Ventures, and Real Ventures. One is the fact that our guests are much more leisure-oriented: 80% of our guests were leisure. There are a lot of organizations that put out forecasts, like Smith Travel Research and CBRE. Managing Director Second-home startup Pacaso hired as head of industry relations. 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. As previously announced on April 30, 2021, Sonder entered into an agreement to combine with GMII. Sonder projected it will have 77,000 units within five years. Its analytics can be used to ensure workers comply with safety standards; managers can use it to benchmark performance. 333-251663), which was declared effective by the SEC on January 19, 2021. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. 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. The Registration Statement is not yet effective. Hospitality startup will reap $650 million, notches $2.2 billion valuation, Sonder co-founder Francis Davidson (Sonder, iStock). Filing date. Launched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments found in over 35 markets spanning ten countries and three continents. OpenSpace, founded in 2017, uses AI and cameras affixed to workers hardhats, to provide 360-degree images of job sites. Form. The landlord is funding it. !function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"])for(var e in a.data["datawrapper-height"]){var t=document.getElementById("datawrapper-chart-"+e)||document.querySelector("iframe[src*='"+e+"']");t&&(t.style.height=a.data["datawrapper-height"][e]+"px")}}))}(); We appear to be moving pastthe pandemic disruption. 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. Click here to join the thousands of knowledgeable readers who subscribe to Future City. His coverage is more complete than his moustache. Wu only took $189,584, however, voluntarily donating the rest to a company relief fund for affected employees. 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. "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. WebThe Investor Relations website contains information about Sonder Holdings Inc.'s business for stockholders, potential investors, and financial analysts. And improving their Revenue per Available Room (RevPAR) from $74 to $165. Kindred Group plc reports in accordance with IFRS and has calendar year as financial year. The high redemption rate for the Sonder deal stands out for SPACs led by buyout Oops! 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. Our view was that we wanted to lean into the recovery. Investing involves risk and possible loss of principal capital. See here for a complete list of exchanges and delays. We can show the value proposition on a spreadsheet. press@sonder.com, Investor Contacts John Christiansen/Cassandra Bujarski Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. 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). Inspirato is the innovative luxury hospitality brand that provides affluent travelers access to a managed and controlled portfolio of hand-selected vacation options, delivered through a subscription model to ensure the service and certainty that affluent customers demand. In the short-run, were focused on rapidly growing, improving our technology, guest experience and operational efficiency, wrote Davidson in a LinkedIn post about the companys journey to becoming publicly-traded. 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. 2021. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. Placer is based in California with an engineering team in Israel. Fifth Wall Ventures, JBV Capital and Aleph VC also participated. The company projects GAAP revenue, a standardized accounting measure, to increase from $116 million last year to almost $4 billion in 2025. 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. 310-209-3010 Forward-looking statements include information concerning Gores Metropoulos IIs or Sonders possible or assumed future results of operations, business strategies, debt levels, competitive position, industry environment, potential growth opportunities and the effects of regulation, including whether this proposed Business Combination will generate returns for stockholders. The brand generates $10 million per quarter, CoStar said. 2019, US$ 178.767 million (LOSS). And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. The Gores Group 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 provide modern service through the phone, and we bring quality and standards to the industry. 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. On the supply side, the new deals that we struck with real-estate owners meaningfully improved. The 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. We plan to have a multi-part series diving into Sonder's competition, strategy, leadership, and more. Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. In 2020, Sonder says they have 4,565 units. We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. Corporate Demand Guided Expansion Strategy 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. UPDATE: SONDER. Josh Scott is a BetaKit reporter focused on breaking news and telling in-depth Canadian tech stories. 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. When used in this press release, the words estimates, projected, expects, anticipates, forecasts, plans, intends, believes, seeks, may, will, should, future, propose and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Finsbury Glover Hering The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. 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. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Compass acquired digital closing startup Glide for an undisclosed sum. Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Sonder. Sonder forecasts their 2025 GAAP revenue to grow to a whopping $4B at a 103% CAGR (2020-2025). For proof that travel is back, look no further than Sonders $2.2 billion SPAC deal. What are you expecting to see in hospitality this year? Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The Sonder app gives guests full control over their stay. WebExpedia Investor Presentation Deck. 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. These margins being driven by post-COVID recovery, better lease agreements, and RevPAR and Property Level Cost initiatives. Moelis & Company LLC acted as additional financial advisor to Gores Metropoulos II. Sonder was founded in Montral in 2012 by Martin Pecard, Lucas Pellan, and Davidson under the name Flatbook. Shares of Gores Metropoulos II rose 0.5% in afternoon trading on Friday. Their view is that we'll see a full recovery of revenue per available room by 2023 or 2024, depending on the market. With a differentiated, tech-driven platform and unique value proposition, were confident that becoming a public company will enable Sonder to solidify its leading position as the hospitality brand of tomorrow., Justin Wilson, Senior Managing Director at The Gores Group, added, "Sonder is a true disruptor in the travel space, with a proven ability to execute and deliver despite a very challenging period for the hospitality industry as a whole. 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. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act. It's joining others in the real-estate tech world, such as WeWork, iBuyer Opendoor, and property-management technology company SmartRent. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. Three is demographics. Let's find people who need to relocate. CEO Francis Davidson co-founded Sonder as a college student in Montreal in 2014. The US$ 200 million PIPE investment is led by an affiliate of The Gores Group, with participation from top-tier institutional investors, including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, entities affiliated with Moore Capital Management, Principal Global Investors, LLC, and Senator Investment Group. We're not acquiring these assets, but we're running a process that's just as thorough. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. Instantly search thousands of Decks by world-leading companies on Slidebook SPAC December 2016 Despegar Mergers and Acquisitions Sonder Start Up January 2019 Related decks Tripadvisor Investor That said there are some positives in the newly restructured deal between the two parties: Sonder will get an $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Management and others, in addition to the $200 million previously announced PIPE. Join the Industrys Brightest Minds in New York City, Business Travelers: A Multi-Country Survey Report, Hotel Tech Benchmark: Booking Engines, Website Builders, and Direct Booking Tools 2023. 2018, US$ 68 million, Net Income In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.While an option overlay is intended to improve performance, there is no guarantee that it will do so. Sonder recently announced its entry into France with the opening of a property in Paris near the iconic Champs-lyses, as well as large expansions of its operations in the Middle East and Mexico. As a company that came to prominence with short-term rentals, can you tell me more about your hotel business? 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? We appear to be moving pastthe pandemic disruption. 0001819395-23-000056.pdf. We sat down with Francis Davidson, Sonder's cofounder and CEO who founded the company by renting out his college apartment to discuss the deal and the future of travel. The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. 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. We don't think it makes sense to spend several hundred dollars a night for a place to stay. After four consecutive quarters in which its profits sagged, the real estate data giant generated $74 million in net income during the first quarter. 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. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. 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 Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. |, 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. In 2020, CoStars Andy Florance was compensated $21.3 million, according to the companys recently filed proxy statement. Leading up to Sonder's SPAC merger with Gores Metropoulos II, Sonder gave an investor presentation in November 2021 laying out the narrative and future of their company with amazing clarity and transparency. 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. We think the current online players are overly focused on capturing agents fees.. 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. Get the latest news about hotels and short-term rentals delivered to your inbox once a week. 2023. For full disclosures, please go to our Terms & Conditions page. 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. Gores is taking Sonder public. Sonders common shares are currently trading on the Nasdaq under the symbol SOND, at a price of $8.61 USD. While the travel industry has faced headwinds with the ongoing pandemic, Sonder has continued to grow at a rapid clip, proving the resiliency of our business model and demonstrating our ability to pivot quickly to address emerging trends and traveler needs. Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder. Seller Rollover Equity, US$ 2,177 million. 2022. So now it's about 50% of our business. Francis Davidson co-founded the company in 2014 while managing several apartments in Montreal as a university student. We've always built a really financially diligent company, but we took this to the next level. 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. 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. jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi Media Contacts WebCombination with Gores Metropoulos II . However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. 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, said Banker. Sonders SPAC deal was first announced in April 2021. And their expected growth rate is also head and shoulders above the median of each of those industries. Reporting by Sohini Podder in Bengaluru; Editing by Ramakrishnan M. Law firms and corporate law departments find strategic partners in ALSPs, US regulation after SVBs collapse: What regulators can do and where Congress needs to act, Ransomware & crypto: The growing compliance challenge, Insights in Action: Corporate law departments find their outside firms innovation lagging, but there may be little incentive to change, Regulators seize First Republic Bank, sell assets to JPMorgan, American Airlines pilots authorize a strike mandate, Factbox: JPMorgan's deal for collapsed First Republic explained, Exclusive: Subway comes up with debt plan to clinch $10 billion-plus sale. Chris Mammone, The Blueshirt Group You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Our Standards: The Thomson Reuters Trust Principles. As part of the deal, Sonder will secure approximately $310 million USD in private investment in public equity (PIPE) capital and $165 million in delayed draw notes to support its new and existing growth initiatives. Please contact our IR department. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Download the Sonder app on Apple or Google Play. 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.
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