The amended terms revise the combined companys pro forma enterprise value to $1.925 billion. Sonder's TAM, the global lodging market, was $809B in 2019. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act. None of Volts proprietary content may be reproduced or referenced, in full or in part, in any other publication without the expressed written consent of Volt. We should be conservative.". According to Sonders calculations, the company would need to have 34,889 live units with to have a positive adjusted EBITDA of US$ 24,201,000. 2022. press@sonder.com Sonder CEO Explains the $2.2 Billion Company's SPAC Deal 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. For more information, please visit www.gores.com. Let's find people who are in need of temporary housing, or who don't want to live with their roommates during a pandemic." Sonder's CEO called the listing a historic moment for the company. The Gores Group For The Gores Group and affiliates: Overview | Sonder Holdings Inc. 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. Obviously, tech and automation are part of why you have better profit margins compared to hotels. Sonder forecasts their 2025 GAAP revenue to grow to a whopping $4B at a 103% CAGR (2020-2025). Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. San Francisco-based Sonder Holdings Inc. (Sonder) officially launched in 2014 and was co-founded by Francis Davidson, Chief Executive Officer, and Martin Sonder revenues are rising while its losses are widening, even as SPAC deals are coming under additional pressure. Morgan Stanley & Co. LLC is serving as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup are serving as capital markets advisors to GM II. 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 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. Except as required by law, Sonder does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this report. Stanza Living, an India-based co-living company, raised a $102M Series B. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. Thats relatively flat year over year and up $36 million from Q4 2020. However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. Download the Sonder app on Apple or Google Play. We appear to be moving pastthe pandemic disruption. 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. 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. 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. Sonder began trading on the Nasdaq this morning, after completing its previously announced business combination with Gores Metropoulos II, a California-based special purpose acquisition company (SPAC). EBITDA margin going from (181%) in 2020 to 16% in 2025. All pictures below are taken from Sonder's investor presentation, the entirety of which can be downloaded from Sonder's investor relations page. Hospitality - SPAC - Current. SPAC makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. Sard Verbinnen & Co Thank you! And their expected growth rate is also head and shoulders above the median of each of those industries. 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. I noticed in the investor presentation that they were mentioned, and I also know that you yourself have spent some time living as a digital nomad. The landlord is funding it. We're not cutting a check 90% of the time now when a property opens. "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. How? 2021, Volt Equity (Volt). For proof that travel is back, look no further than Sonders $2.2 billion SPAC deal. Opendoor Eric Wus total compensation was $370.2 million, with a base salary of $325,000. 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. 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. Investors This comes as the travel and short-term-rental industries are set to rebound after pandemic lows. Wilson Sonsini Goodrich & Rosati, P.C. Download the Sonder app on Apple or Google Play. After a record 109 SPAC deals in March, the market cooled with just 10 deals in April, according to SPAC Research. 2008-2023 Sovereign Wealth Fund Institute. In 2020, Sonder had 5,000 units (with contracts for another 7,000). 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 most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Get research, business strategy, and tech analysis delivered to your inbox. 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. 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. Stay up to date with what you want to know. Can you talk me through your decision to go public? 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. 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. Two years later, the firm moved its headquarters to San Francisco and incorporated in the US, in pursuit of international investors. Media Contacts WebReports & Presentations. Our view was that we wanted to lean into the recovery. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. Sonder Leading next And it's typical for the landlord to fund it. The company currently operates in 70 countries, and CEO Amiad Soto said the funding will go toward market and tech expansion. 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. Now, roughly 50% of our growth is conversion of independent hotels into Sonder hotels. 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. Plus, a startup that tracks our cell phones raised $50M. We are really proud of what weve achieved to date and want to recognize the dedication of all Sonderites. The company previously raised more than $560 million and is backed by investors One is the fact that our guests are much more leisure-oriented: 80% of our guests were leisure. And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. 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 will merge with SPAC to go public - The Real 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.". For more investment insights, sign up for our email list below and subscribe to our YouTube channel. 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. The hospitality business is expected to have a pro forma enterprise value of $2.2 billion and over $700 million of net cash at closing. Gores Taking Sonder Public + Hidden SPAC Volatility Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Metropoulos & Co. whose Principals are Dean, Evan and Daren Metropoulos. With property level profit margins going from (54%) in 2020 to 32% in 2025. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. In response to evolving market dynamics, we are also amending the terms of our merger agreement, reflecting our commitment to driving long-term value creation, transparency and stockholder alignment in this high-performing and innovative business., We continue to see a rebound in leisure travel, and we are aggressively pursuing our expansion plans and capturing significant consumer demand. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. New PIPE Investment, US$ 200 million jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi The Registration Statement is not yet effective. 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. But even outside of the stay, Sonder leverages home-grown technology to optimize backend operations (e.g. 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. 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. 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. 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. Our Standards: The Thomson Reuters Trust Principles. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. Volt does not purport to provide any legal, tax, or accounting advice. It's joining others in the real-estate tech world, such as WeWork, iBuyer Opendoor, and property-management technology company SmartRent. Sonder In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. The industry leader for online information for tax, accounting and finance professionals. The vast majority, around 80%, of our guests are less than 50 years old. 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 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. Sonder was last valued at $1.3 billion, after raising $170 million in June. In the last year, I spent nine out of last 12 months in Sonders across 20 plus of our markets, driving from place to place and working from them. So now it's about 50% of our business. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity We're talking about a cost structure that's roughly, on an operating-cost basis, up to 50% lower than traditional. He brings nearly two For full disclosures, please go to our Terms & Conditions page. We are happy to share any additional information with you on request. GM II raised $450 million through an initial public offering in January. Their view is that we'll see a full recovery of revenue per available room by 2023 or 2024, depending on the market. 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. Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. WebHis areas of focus include defining Sonders overall product strategy, maximizing the impact of tech investments and leading the delivery of product roadmaps. 2012-2023 BetaKit Incorporated. Other CEOs followed suit. 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. 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.
Narne Srinivasa Rao Biography,
What Time Does Royal Caribbean Disembark,
Manny's Seafood Tower,
Jesse Labreck Wedding,
Articles S