Sonder Holdings Inc. and Gores Metropoulos II Announce Investing involves risk and possible loss of principal capital. 2012-2023 BetaKit Incorporated. The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. And improving their Revenue per Available Room (RevPAR) from $74 to $165. 2022. WebSonder Holdings, Inc., a leading next-generation hospitality company, and Gores Metropoulos II, Inc. announce closing of business combination. Their view is that we'll see a full recovery of revenue per available room by 2023 or 2024, depending on the market. In terms of real estate supply availability, Sonder has just scratched the surface with only 0.8% of new apartment units to be contracted in their current US markets, and only 1.8% of global hotel units to be contracted. 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. You can read more of our analysis on Sonder's strategic position vs. hotels in this post. Filing date. 2023. Can you talk me through your decision to go public? SWFI is a minority-owned organization. All references to available cash are subject to any redemptions by the public stockholders of GM II and payment of transaction expenses. is serving as legal advisor to Sonder. 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. Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. It currently operates 8,000 (with contracts for 10,000 more). We have built technology that our guests can benefit from, like the mobile app where you can manage your entire stay. Exclusive news, data and analytics for financial market professionals. Chris Mammone, The Blueshirt 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. 2008-2023 Sovereign Wealth Fund Institute. We could partner with independent hotel owners and figure out a way to say, "Hey, let's put our design capabilities in here to uplift the aesthetics of the property to attract our modern travelers. 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. 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. WebReports & Presentations. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Management & Research LLC, funds and accounts managed by BlackRock, Atreides Management, LP, and Senator Investment Group (the New PIPEs), in addition to the $200 million previously announced PIPE (the Existing PIPE). However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. Web10. Click here to join the thousands of knowledgeable readers who subscribe to Future City. Gores Metropoulos II raised $450 million in a January IPO, and raised an additional $200 million from PIPE investors, including BlackRock, Fidelity and Senator Investment Group. Takeaway: Given industry multiples and Sonder's growth rate, Sonder's valuation seems like the deal of a lifetime. The announcement follows a grueling year for hospitality. The Hail Mary at the time was identifying other use cases. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. The deal with Gores Metropoulos II (GMII.O)will give the hospitality startup $650 million of cash proceeds, including a private placement of $200 million from investors such as Fidelity Management & Research Company LLC and BlackRock Inc (BLK.N). 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. He brings nearly two 310-209-3010 All Rights Reserved. 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. Special purpose acquisition companies are shells that raise funds through an IPO without underlying assets. Rental Startup Sonder Agrees to Morgan Stanley & Co. LLC served as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup served as capital markets advisors to GM II. Takeaway: Sonder is expecting insane levels of growth, and despite being in a capital-intensive business, sees a rapid path to profitability. 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. Form. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 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. Sonder the lodging startup known for turning properties into short-term rental buildings is going public via a special acquisition company (SPAC), Gores The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup, and Deutsche Bank Securities Inc. served as joint lead placement agents on the PIPE. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi We spoke with Sonder's Francis Davidson about the deal and his outlook on the hospitality industry. And it's typical for the landlord to fund it. Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. An additional $200 million is expected from private investors including BlackRock, Fidelity Management & Research and Senator Investment Group. 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 Opendoor Eric Wus total compensation was $370.2 million, with a base salary of $325,000. Over the course of their careers, Messrs. Gores and Metropoulos and their respective teams have invested in more than 180 portfolio companies through varying macroeconomic environments with a consistent, operationally-oriented investment strategy. 2019, US$ 142.908 million Gores and Metropoulos facilitated an IPO for lidar sensor maker Luminar Technologies last August in a nearly $2.9 billion merger with a different SPAC. Get research, business strategy, and tech analysis delivered to your inbox. 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. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. 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. Mr. Davidson will continue to serve as Co-Founder and CEO and Mr. Banker will continue to serve as President and CFO. 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. Now, roughly 50% of our growth is conversion of independent hotels into Sonder hotels. This comes as the travel and short-term-rental industries are set to rebound after pandemic lows. The vast majority, around 80%, of our guests are less than 50 years old. 2021, Volt Equity (Volt). 2021. Many services like the front desk, concierge, customer service, cleaning are replaced with their app. Driven in part by increasing supply from 12k total units (live + contracted) in 2020 to 102k total units in 2025. 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. 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. Revenue tripled, the company said. Hospitality - SPAC - Current. 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. The Registration Statement, including the proxy statement/consent solicitation statement/prospectus contained therein, when it is declared effective by the SEC, will contain important information about the proposed Business Combination and the other matters to be voted upon at a meeting of Gores Metropoulos IIs stockholders to be held to approve the proposed Business Combination and other matters (the Special Meeting) and is not intended to provide the basis for any investment decision or any other decision in respect of such matters. Sonder But even outside of the stay, Sonder leverages home-grown technology to optimize backend operations (e.g. GMII dropped 5.5% today and closed at $8.86. Any and all subjective claims and statements made on this site regarding companies or securities are strictly the beliefs and views held by Volt and are in no way meant to be an endorsement by Volt of any company or security and nor is it meant to be a recommendation by Volt to buy, sell, or hold any security.Past performance is no guarantee of future returns. In response to evolving market dynamics, we are also amending the terms of our merger agreement, reflecting our commitment to driving long-term value creation, transparency and stockholder alignment in this high-performing and innovative business., We continue to see a rebound in leisure travel, and we are aggressively pursuing our expansion plans and capturing significant consumer demand. 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 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. Sonder was founded in Montral in 2012 by Martin Pecard, Lucas Pellan, and Davidson under the name Flatbook. Thank you! The company says it has 500 customers, including JLL, retail center operators Brixmor and Taubman, along with Planet Fitness and Dollar General. There are a lot of organizations that put out forecasts, like Smith Travel Research and CBRE. The SPAC attack is back for a San Francisco-based hospitality startup. 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). We should be conservative.". The The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. Please contact our IR department. You can see their 2019 Series D investor pitch deck here. Corporate Demand Guided Expansion Strategy We have a lot of processes that are frankly akin to an investment committee at a private-equity firm. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. Sard Verbinnen & Co Sonder will merge with SPAC to go public - The Real WebCombination with Gores Metropoulos II . Sonder's CEO called the listing a historic moment for the company. Sonder announced that it's going public via a SPAC deal that values the company at $2.2 billion. The Gores Group Sonder's evolving narrative (2019 Series D pitch deck vs. 2021 The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. 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. Thats relatively flat year over year and up $36 million from Q4 2020. In the markets that we're in we're talking about substantial investments into those local economies either through our partners or with the employees that we have on the ground. The Gores Group The Gores Group We've never thought of positioning the business for a quick acquisition. One is the fact that our guests are much more leisure-oriented: 80% of our guests were leisure. The company scored a The Gores Group Sonder This press release contains a number of forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All this allows them to cut down on operating costs by as much as ~50%. So now it's about 50% of our business. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder. 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. Sonder's evolving narrative (2019 Series D pitch deck vs. 2021 investor presentation) It's interesting to see how Sonder's narrative has evolved from when they Plus, can SPAC investors take advantage of the big moves that are hidden in SPACs with announced deals? Something went wrong while submitting the form. ir@sonder.com, For The Gores Group and affiliates: We don't think it makes sense to spend several hundred dollars a night for a place to stay. Sonder will merge with SPAC to Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. Weil, Gotshal & Manges LLP is serving as legal advisor to Gores Metropoulos II. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. What are you expecting to see in hospitality this year? Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. In 2020, CoStars Andy Florance was compensated $21.3 million, according to the companys recently filed proxy statement. Access exclusive travel research, data insights, and surveys. Jennifer Kwon Chou Description. 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. 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. Hospitality startup will reap $650 million, notches $2.2 billion valuation, Sonder co-founder Francis Davidson (Sonder, iStock). You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. What we know is that we have a lot of favorable characteristics that would allow us to recover faster. GAAP Revenue Portfolio 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. 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. 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. UPDATE: SONDER. Investor 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. Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. Leading next The idea is that Sonder is not a short-term-rental company. 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. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. We bring beautiful spaces to life. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. Opendoor tapped Squares Mike Cieri as vice president of product for its buyer team. Lodging Firm Sonder Agrees to $2.2 Billion Gores SPAC Merger Let's also plug in our technology and modernize this hotel so that the customer experience can be improved and the cost structure can go down.". The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. The industry leader for online information for tax, accounting and finance professionals. Sonder Discovers Growth Comes at Goldman Sachs is advising Sonder, and Morgan Stanley is the leading adviser to Gores Metropoulos II. 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. It projected $4 billion in revenues in 2025, and profitability in 2023 when it forecast $24.2 million in EBITDA. Gores Metropoulos II stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of Gores Metropoulos II in Gores Metropoulos IIs registration statement on Form S-1 (File No. Sonder 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. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Stanza Living, an India-based co-living company, raised a $102M Series B. 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. Sonder Investor Presentation (Nov 2021) - All Key Slides After four consecutive quarters in which its profits sagged, the real estate data giant generated $74 million in net income during the first quarter. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. 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.
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