Something went wrong while submitting the form. SPACs are shell companies that raise funds to take a private company public through a merger at a later date. Sonder the lodging startup known for turning properties into short-term rental buildings is going public via a special acquisition company (SPAC), Gores Corporate Demand Guided Expansion Strategy Mr. Davidson will continue to serve as Co-Founder and CEO and Mr. Banker will continue to serve as President and CFO. GORES HOLDINGS IX, INC. Gores Holdings IX, Gores fourteenth special purpose acquisition company, completes $525 Million IPO. And it's typical for the landlord to fund it. 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. Tomorrow, GMII Gores Metropoulos II shareholders vote on their deal with Sonder (hear the podcast and see our report here). Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. We provide modern service through the phone, and we bring quality and standards to the industry. These forward-looking statements are based on Gores Metropoulos IIs or Sonders managements current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. All Rights Reserved. Why are you in such a good position to go public now when it's been a challenge across the board for your competitors? 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. Sonder currently operates more than 300 properties across 35 markets in eight countries. Get research, business strategy, and tech analysis delivered to your inbox. The idea is that Sonder is not a short-term-rental company. Additional information about the proposed Business Combination, including a copy of Amendment No. The way Sonder achieves this is through cutting out the fat in the hospitality industry through technology. The SPAC attack is back for a San Francisco-based hospitality startup. The landlord is funding it. For more information, please visit www.gores.com. We plan to have a multi-part series diving into Sonder's competition, strategy, leadership, and more. 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. We should be conservative.". A key takeaway from todays news is that our ambitious growth and expansion strategy remains unchanged and should be fully-funded. We are happy to share any additional information with you on request. 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. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. The deal will give Sonder $650 million in cash to scale up. This communication is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities pursuant to the proposed Business Combination or otherwise, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. One is the fact that our guests are much more leisure-oriented: 80% of our guests were leisure. 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. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. The San-Francisco-based company was in talks with Gores about going public in ir@sonder.com, For The Gores Group and affiliates: Were excited to watch them continue to expand and reshape guest stays at a global level.. Something went wrong while submitting the form. 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. Sonder reported $116 million in revenue last year, a 19% drop year-over-year. Please contact our IR department. The business combination was approved at a special meeting of Gores Metropoulos II stockholders on January 14, 2022. We reported company-record quarterly revenue in Q2 and are eager to pursue continued growth, said Francis Davidson, Co-Founder and CEO of Sonder. 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. 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. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. 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. Sonder announced that it's going public via a SPAC deal that values the company at $2.2 billion. We're not cutting a check 90% of the time now when a property opens. Cosmo Specialty Fibers Sonder Hospitality - SPAC - Current. We appear to be moving pastthe pandemic disruption. 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. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. We improved unit economics by having landlords funding all of the investments required for a company to become a Sonder. Get the latest news about hotels and short-term rentals delivered to your inbox once a week. Opendoor Eric Wus total compensation was $370.2 million, with a base salary of $325,000. There's no Sonder city where there's no Sonder employees, so we do provide meaningful employment. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. The It's going to be really interesting to see how we might be able to capture some of that demand. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. 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 $220 million to fund operations and support new and existing growth initiatives. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. Click here to join the thousands of knowledgeable readers who subscribe to Future City. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. And this is really the purpose that the technology serves. Additionally, the parties agreed to extend the Merger Agreement end date from October 28, 2021 to January 31, 2022 after which Gores Metropoulos II and Sonder would have the right to terminate the Merger Agreement if the proposed business combination has not been consummated by January 31, 2022. These two things have meant that we've gone from funding 84% of the capital expenditure of the deals we did in 2019 to now funding 10%. The announcement follows a grueling year for hospitality. The results presented should not be viewed as indicative of the adviser skill and do not reflect the performance results that were achieved by any particular client. The hospitality startup, which leases apartments and turns them into furnished, short-term rentals, announced plans to merge with a blank-check firm backed by SPAC pioneers Alec Gores and Dean Metropoulos. New PIPE Investment, US$ 200 million Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity !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. 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 You can read more of our analysis on Sonder's strategic position vs. hotels in this post. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. We really skew toward Gen Z and millennials, where there's an expectation that these categories will come back. Placer is based in California with an engineering team in Israel. 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. Our Standards: The Thomson Reuters Trust Principles. WebInvestor Presentation (March 2023)21.8 MB 3Q22 Shareholder Letter5.8 MB 2Q22 Shareholder Letter6.5 MB Cash Flow Positive Plan Presentation1.4 MB 1Q22 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. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. 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. It also gave a peek at its pipeline of units. Two is that the vast majority of our travelers are domestic, not international. Gores Metropoulos II is a SPAC sponsored by an affiliate of The Gores Group, a Beverly Hills-based global investment firm. 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. The SPAC that Sonder will merge with, Gores Metropoulos II, raised $450 million in its initial public offering in January. April 19, 2023. The Registration Statement is not yet effective. Oops! Goldman Sachs serves as the financial advisor to Sonder, while Morgan Stanley is the lead financial advisor to Gores Metropoulos. Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) is 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 Metropoulos & Co. whose Principals are Dean, Evan and Daren Metropoulos. 2021. "If travel demand dries up, let's find traveling nurses. Content is subject to change without notice. The brand generates $10 million per quarter, CoStar said. 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. Description. 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. OpenSpace, founded in 2017, uses AI and cameras affixed to workers hardhats, to provide 360-degree images of job sites. Managing Director On the supply side, the new deals that we struck with real-estate owners meaningfully improved. How? See here for a complete list of exchanges and delays. Moelis & Company LLC acted as additional financial advisor to GM II. The goal has always been to go public as part of the path of achieving our overall goal: the mission of the business. We don't think it makes sense to spend several hundred dollars a night for a place to stay. So now it's about 50% of our business. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) 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 real estate owners and developers, guests and suppliers and retain its management and key employees; (b) changes in applicable laws or regulations, including legal or regulatory developments (such as changes in local laws affecting hotels, apartments and other accommodation and regulatory developments related to special purpose acquisition companies); (c) the possibility that Sonder may be adversely affected by other economic, business and/or competitive factors; (d) risks related to the impact of the COVID-19 pandemic, including the Omicron and other variants and potential governmental and other restrictions (including travel restrictions) resulting therefrom; and (e) other risks and uncertainties described in the final proxy statement/prospectus/consent solicitation statement, including those under the heading Risk Factors therein, and other documents filed by the Company from time to time with the SEC. Plus, a startup that tracks our cell phones raised $50M. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. 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 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. Revenue tripled, the company said. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. An additional $200 million is expected from private investors including BlackRock, Fidelity Management & Research and Senator Investment Group. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Your goal is to grow quite rapidly and become a leading force in hospitality. is serving as legal advisor to Sonder. Team: CEO Noam Ben-Zvi co-founded Placer with Zohar Bar-Yehuda, Oded Fossfeld, Ofir Lemel and Koby Ben-Zvi, Noams father. Sonder's CEO called the listing a historic moment for the company. He brings nearly two Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the PIPE. So we think there's actually been a leapfrogging of behavior that maps really closely to the way that we've been operating our business. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. Existing Sonder stockholders will retain 74% ownership in the pro forma company. SPAC Cash in Trust, US$ 450 million 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. The startups software lets hosts manage listings, communicate with tenants, process payments and send push notifications. WebCombination with Gores Metropoulos II . The hospitality business is expected to have a pro forma enterprise value of $2.2 billion and over $700 million of net cash at closing. 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. 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. 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. Takeaway: Sonder is expecting insane levels of growth, and despite being in a capital-intensive business, sees a rapid path to profitability. Oops! For The Gores Group and affiliates: 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. The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. Global Wealth Conferences - SWFI Event Series, Money Losing, Short Term Rental Platform Sonder Gets Saved by Gores SPAC. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 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. press@sonder.com, Investor Contacts Below are the highlights from the presentation. 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. It claims the platform also placed $7.7 billion in title insurance and $1.4 billion in homeowners insurance. WebExpedia Investor Presentation Deck. I think it's really important to underscore that we are a technology meets operations company. Sonder was last valued at $1.3 billion, after raising $170 million in June. Finsbury Glover Hering In this space you will find all of our financial reports, presentations, webcasts and relevant video material. Chris Mammone, The Blueshirt Group 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. Volt does not purport to provide any legal, tax, or accounting advice. 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 company currently operates in 70 countries, and CEO Amiad Soto said the funding will go toward market and tech expansion. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. There are a lot of organizations that put out forecasts, like Smith Travel Research and CBRE. Two years later, the firm moved its headquarters to San Francisco and incorporated in the US, in pursuit of international investors. 2021. Morgan Stanley & Co. LLC is serving as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup are serving as capital markets advisors to Gores Metropoulos II. Sonder forecasts their 2025 GAAP revenue to grow to a whopping $4B at a 103% CAGR (2020-2025). The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. It's a really robust process to ensure that we're covered on the downside and that we only take on properties that are going to be really, really profitable and valued by our guests. Get research, business strategy, and tech analysis delivered to your inbox, Peter Thiel on Identifying Disruptive Companies: 10x Better than Competitors. Moelis & Company LLC acted as additional financial advisor to Gores Metropoulos II. We have a lot of processes that are frankly akin to an investment committee at a private-equity firm. 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.
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