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. Wilson Sonsini Goodrich & Rosati, P.C. Investing involves risk and possible loss of principal capital. The You can read more of our analysis on Sonder's strategic position vs. hotels in this post. OR GORES HOLDINGS IX, INC. Gores Holdings IX, Gores fourteenth special purpose acquisition company, completes $525 Million IPO. Description. 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. Morgan Stanley & Co. LLC served as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup served as capital markets advisors to GM II. WebReports & Presentations. For full disclosures, please go to our Terms & Conditions page. 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). These amendments and associated incremental investments by leading institutional investors to adapt to current market conditions strongly position Sonder for long-term growth, and underscore Sonders and Gores Metropoulos IIs collective commitment to driving long-term value creation for all stockholders. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. Brokerage giant Realogy struck a massive deal with MoxiWorks, a real estate software startup. 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. Finsbury Glover Hering For full disclosures, please go to our Terms & Conditions page. 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. Download the Sonder app on Apple or Google Play. 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. 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. Last year, OpenSpaces maps more than came in handy. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. After the tough year that we've been through, there's one approach, which is stepping back and saying, "Hey, this is rough. For The Gores Group and affiliates: 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 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. The Hail Mary at the time was identifying other use cases. Sonder expects to hit $4 billion of revenue in 2025 and touts its technology-driven service model can reduce operating costs compared with traditional hotels. All references to available cash are subject to any redemptions by the public stockholders of GM II and payment of transaction expenses. 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. All Rights Reserved. Volt does not purport to provide any legal, tax, or accounting advice. The company will also have access to up to $450 million in cash through Gore Metropoulos IIs trust account. This comes as the travel and short-term-rental industries are set to rebound after pandemic lows. And in those cases, it's commonplace in the hospitality industry to have a reserve for capital improvements. We delivered record quarterly revenue in both Q2 and Q3 and we remain aggressively optimistic on the future of travel, said Francis Davidson, Co-Founder and Chief Executive Officer of Sonder. Can you talk me through your decision to go public? 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. Finsbury Glover Hering Weil, Gotshal & Manges LLP served as legal advisor to GM II. SPACs are shell companies that raise funds to take a private company public through a merger at a later date. Your goal is to grow quite rapidly and become a leading force in hospitality. Sonder recently took over the Flatiron Hotel in New York City as part of its model to lease, refurbish and rent short- and medium-stay rooms. As part of the proposed business combination, the Company will receive approximately $110 million in incremental capital from affiliates of Gores Metropoulos II and other leading investors including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, and Senator Investment Group pursuant to the New PIPEs, in addition to the $200 million Existing PIPE, which continues to be led by affiliates of Gores Metropoulos II, with participation from top-tier institutional investors including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, funds and accounts managed by Principal Global Investors, LLC, and Senator Investment Group. A year ago, Redfin CEO Glenn Kelman said he would forgo a salary after the tech brokerage had to furlough 40 percent of agents and staff. Oops! Starting from right to left: Usually a lodging provider would need to make a trade-off in terms of these 3 dimensions of price, design, quality consistency. 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. Josh Scott is a BetaKit reporter focused on breaking news and telling in-depth Canadian tech stories. The landlord is funding it. Company Profile. See here for a complete list of exchanges and delays. 2021. 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. The combined company will operate as Sonder Holdings Inc. and will commence trading its common stock and publicly traded warrants on the Nasdaq Global Select Market (Nasdaq) tomorrow under the ticker symbols SOND and SONDW, respectively. And this is really the purpose that the technology serves. Get the latest news about hotels and short-term rentals delivered to your inbox once a week. Hospitality startup will reap $650 million, notches $2.2 billion valuation, Sonder co-founder Francis Davidson (Sonder, iStock). 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. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the Existing PIPE. 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. The two clear takeaways are: (1) travel is rebounding and (2) Gores and Metropoulos arent worried about the impending regulatory crackdown on SPACs. The amended terms revise the combined companys pro forma enterprise value to $1.925 billion. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. Seller Rollover Equity, US$ 2,177 million. 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. I sign off in DocuSign on a summary of all the deals. The business combination was approved at a special meeting of Gores Metropoulos II stockholders on January 14, 2022. We're not acquiring these assets, but we're running a process that's just as thorough. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Get research, business strategy, and tech analysis delivered to your inbox, Peter Thiel on Identifying Disruptive Companies: 10x Better than Competitors. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. It claims the platform also placed $7.7 billion in title insurance and $1.4 billion in homeowners insurance. 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. 2021, Volt Equity (Volt). 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. 2008-2023 Sovereign Wealth Fund Institute. 2012-2023 BetaKit Incorporated. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. Investing involves risk and possible loss of principal capital. His coverage is more complete than his moustache. Jennifer Kwon Chou One is the fact that our guests are much more leisure-oriented: 80% of our guests were leisure. 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. 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 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. 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. 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. Launched by Davidson and cofounder Lucas Pellan in 2012 as a way to rent vacant college apartments, Sonder's portfolio has grown to a massive size. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. 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. Chris Mammone, The Blueshirt Group Thats relatively flat year over year and up $36 million from Q4 2020. 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. We should be conservative.". Thank you! 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. The content should not be considered investment advice and is for educational purposes only. How? 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). Additional risks and uncertainties are identified and discussed in Sonders reports filed and to be filed with the SEC and available at the SECs website at www.sec.gov. Stanza Living, an India-based co-living company, raised a $102M Series B. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. After a record 109 SPAC deals in March, the market cooled with just 10 deals in April, according to SPAC Research. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. An additional $200 million is expected from private investors including BlackRock, Fidelity Management & Research and Senator Investment Group. 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. 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. Our Standards: The Thomson Reuters Trust Principles. 310-209-3010 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. The company scored a valuation of $2.2 billion in the deal and expects to reap $650 million in the offering, Reuters reported.