Hospitality company Sonder will list on the NASDAQ tomorrow January 19 via a special purpose acquisition company (SPAC) created through a business
combination with Gores Metropoulos II.
San Francisco-based Sonder, founded in 2014, was valued at $1.9 billion as of October 2021. Its common stock will list with the ticker symbol SOND.
The SPAC
deal brings in approximately $310 million in PIPE (private investment in
public equity) capital from investors including Gores Metropoulos II, Fidelity
Management & Research LLC, funds and accounts managed by subsidiaries of
BlackRock, Atreides Management and Senator Investment Group. Sonder says it
will also draw on $165 million of delayed draw notes, and it will have up to
$450 million in cash in Gores Metropoulus II’s trust account.
In the third quarter of 2021, Sonder reported
revenue of $67.5 million, $126 of RevPAR and raised its outlook for total 2021
revenue to from $200 to 205 million.
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“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. We
delivered record quarterly revenue in both Q2 and Q3 and we remain aggressively
optimistic on the future of travel,” says Francis Davidson, Sonder co-founder
and CEO.
“Today is a historic moment for
the entire Sonder team and a testament to how we’ve revolutionized the
hospitality industry by reimagining and delivering what the modern traveler
demands. We are really proud of what we’ve achieved to date and want to
recognize the dedication of all Sonderites. We have an exceptional team in
place to drive the next chapters of growth for our organization.”
Sonder’s more than 16,000 accommodations, ranging
from rooms to fully equipped suites and apartments, are located in more than 35
markets across 10 countries. The company added more than 25 new buildings
across the United States in the second half of 2021.
Davidson, one of PhocusWire’s
Travel Movers and Shakers for 2022, founded Sonder while in college in
Montreal. In its investor presentation, the company says it plans to grow to
77,000 units and more than 30% property level profit margin by 2025.