Your submission has been received! Weil, Gotshal & Manges LLP is serving as legal advisor to GM II. Get research, business strategy, and tech analysis delivered to your inbox. Official notification to shareholders of matters to be brought to a vote ("Proxy") DEF 14A. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. WebSonder Holdings, Inc., a leading next-generation hospitality company, and Gores Metropoulos II, Inc. announce closing of business combination. 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. Corporate Demand Guided Expansion Strategy 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. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. With property level profit margins going from (54%) in 2020 to 32% in 2025. 2023. There's nothing like it. Download the Sonder app on Apple or Google Play. SWFI is a minority-owned organization. 0001819395-23-000056.pdf. However, over the last couple of years, Sonder has begun to expand its presence in Montral once more. 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 Gores Group We are happy to share any additional information with you on request. WebCombination with Gores Metropoulos II . Our Standards: The Thomson Reuters Trust Principles. The SPAC attack is back for a San Francisco-based hospitality startup. We can show the value proposition on a spreadsheet. Moelis & Company LLC acted as additional financial advisor to GM II. 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. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. The SPACs investors include affiliates of Gores Metropoulos II, Fidelity Management & Research, funds and accounts managed by BlackRock Subsidiaries, Atreides Management, and Senator Investment Group. Thats relatively flat year over year and up $36 million from Q4 2020. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. We are happy to share any additional information with you on request. British Land, the U.K.s largest REIT, sold its property management platform to Australia-based Equiem. UPDATE: SONDER. Obviously, tech and automation are part of why you have better profit margins compared to hotels. It's like a hybrid of Airbnb and Hilton, turning apartments into hotel suites. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. For full disclosures, please go to our Terms & Conditions page. Managing Director Leading up to Sonder's SPAC merger with Gores Metropoulos II, Sonder gave an investor presentation in November 2021 laying out the narrative and future of their company with amazing clarity and transparency. 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. 2008-2023 Sovereign Wealth Fund Institute. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. For more investment insights, sign up for our email list below and subscribe to our YouTube channel. We strongly believe that Sonder is the hospitality brand of tomorrow and have high conviction that the company will continue to grow, which is why we are increasing our initial investment, said Alec Gores, Chairman and CEO of The Gores Group and CEO of Gores Metropoulos II. The landlord is funding it. 310-209-3010 On the supply side, the new deals that we struck with real-estate owners meaningfully improved. We have built technology that our guests can benefit from, like the mobile app where you can manage your entire stay. Wilson Sonsini Goodrich & Rosati, P.C. For proof that travel is back, look no further than Sonders $2.2 billion SPAC deal. Concurrently with the consummation of the transaction, additional investors have committed to participate in the proposed business combination by purchasing shares of common stock of GM II in a private placement (the PIPE). Gores Metropoulos II was formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. 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. Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. 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. Highlights from the presentation are below. Exclusive news, data and analytics for financial market professionals. 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). Sonder was founded in Montral in 2012 by Martin Pecard, Lucas Pellan, and Davidson under the name Flatbook. Your submission has been received! The father and son were also co-founders of BlueTail, a social media marketing startup acquired by Salesforce in 2012. CEO Francis Davidson co-founded Sonder as a college student in Montreal in 2014. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. 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. The Sonder app gives guests full control over their stay. Why are landlords willing to fund that much capital expenditure? Investing involves risk and possible loss of principal capital. Leading next 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. Something went wrong while submitting the form. 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. Earlier this month, the firm said it would buy Homes.com for $156 million. See here for a complete list of exchanges and delays. Morgan Stanley & Co. LLC served as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup served as capital markets advisors to GM II. Javascript is required for this site to display correctly. Terms werent disclosed. 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. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. ir@sonder.com Jennifer Kwon Chou 1, will be provided in a Current Report on Form 8-K which will be filed by Gores Metropoulos II with the SEC and will also be available at www.sec.gov. The new funding raised will help continue to focus on building the company and hopefully keep the economics in check enough to complete the deal. Filing date. 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. It also gave a peek at its pipeline of units. There's no product out there that is as high quality, consistent, affordable, and perfectly well set up to work while you're on the road. We believe the addition of this incremental funding brings stability and security, enabling Sonder to be appropriately capitalized to fund our continued growth over the next several years. When the country went into lockdown last year, OpenSpace allowed construction bosses to monitor essential jobs remotely with its site-mapping tool. All references to available cash are subject to any redemptions by the public stockholders of GM II and payment of transaction expenses. We bring beautiful spaces to life. 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. Get research, business strategy, and tech analysis delivered to your inbox, Peter Thiel on Identifying Disruptive Companies: 10x Better than Competitors. Second-home startup Pacaso hired as head of industry relations. Sonders common stock to commence trading on the Nasdaq under ticker SOND on January 19, Approximately $310 million PIPE capital from leading investors including affiliates of Gores Metropoulos II, Fidelity Management & Research LLC, funds and accounts managed by subsidiaries of BlackRock, Inc., Atreides Management, LP, and Senator Investment Group, Sonder to draw on $165 million in principal amount of Delayed Draw Notes following the closing of the business combination. 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. For The Gores Group and affiliates: The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. 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. Revenue tripled, the company said. 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 When available, the definitive proxy statement/consent solicitation statement/prospectus will be mailed to Gores Metropoulos II stockholders as of a record date to be established for voting on the proposed Business Combination and the other matters to be voted upon at the Special Meeting. 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. Sonders SPAC deal was first announced in April 2021. We have a lot of processes that are frankly akin to an investment committee at a private-equity firm. Takeaway: Sonder is expecting insane levels of growth, and despite being in a capital-intensive business, sees a rapid path to profitability. Team: CEO Noam Ben-Zvi co-founded Placer with Zohar Bar-Yehuda, Oded Fossfeld, Ofir Lemel and Koby Ben-Zvi, Noams father. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. Yet, their recent historical growth rate has been MUCH higher than the median of each of those industries. Additional Information and Where to Find It. WebReports & Presentations. Special purpose acquisition companies are shells that raise funds through an IPO without underlying assets. 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. 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 For Sonder: You can read more of our analysis on Sonder's strategic position vs. hotels in this post. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. But Sonder is able to score well on all 3 dimensions. Goldman Sachs is advising Sonder, and Morgan Stanley is the leading adviser to Gores Metropoulos II. 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. The high redemption rate for the Sonder deal stands out for SPACs led by buyout He brings nearly two Weil, Gotshal & Manges LLP served as legal advisor to GM II. Access exclusive travel research, data insights, and surveys. We spoke with Sonder's Francis Davidson about the deal and his outlook on the hospitality industry. We reported company-record quarterly revenue in Q2 and are eager to pursue continued growth, said Francis Davidson, Co-Founder and CEO of Sonder. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Our mission is really one of democratization here. !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. What we know is that we have a lot of favorable characteristics that would allow us to recover faster. 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.". Founded in 2014, the Israel-based company has been in growth mode. jchou@gores.com 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. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 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. 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. Last year, OpenSpaces maps more than came in handy. Proptech was no exception, with 15 new SPACs in February followed by 16 in March and just one so far in April, according to TRDs SPAC tracker. The combined company will operate as Sonder Holdings, while Sonders common stock and publicly traded warrants will trade on the Nasdaq Global Select Market today under the ticker symbols SOND and SONDW, respectively. The amended terms revise the combined companys pro forma enterprise value to $1.925 billion. San Franciscos short-term rental startupSonder has lowered its going-public-through-SPAC valuation down to $1.925 billion from the earlier planned $2.2 billion, as market conditions change and SPACs face more headwind. Wilson Sonsini Goodrich & Rosati, P.C. Cosmo Specialty Fibers Sonder Hospitality - SPAC - Current. 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. Sonder will be scheduling a bell ringing ceremony with Nasdaq at a later date to formally celebrate its public listing. The deal will give Sonder $650 million in cash to scale up. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. We think the current online players are overly focused on capturing agents fees.. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. OR Content is subject to change without notice. The company says it has 500 customers, including JLL, retail center operators Brixmor and Taubman, along with Planet Fitness and Dollar General. Other CEOs followed suit. 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. Sonder expects to hit $4 billion of revenue in 2025 and touts its technology-driven service model can reduce operating costs compared with traditional hotels. In 2020, Sonder had 5,000 units (with contracts for another 7,000). New PIPE Investment, US$ 200 million His coverage is more complete than his moustache. 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. "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. The business was heavily impacted when the global pandemic brought the travel industry to a halt last year, but has rebounded as it targets millennial leisure travelers, said Chief Executive and co-founder Francis Davidson. The CEOs of Opendoor and Porch saw hefty stock and options in a year when both companies went public. WebLatest Presentation For optimal viewing of the presentation, please open the PDF in a new window by clicking the Download PDF button below. 2020, US$ 116.153 million Latham & Watkins LLP is serving as legal advisor to the co-placement agents. Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. According to Sonders presentation, the company had 2,000 live units in 2018, 5,000 live units in 2019, and 4,565 live units in 2020. Thats due to the leadership and staff who built a flexible model thats been proven at scale, Roberts told BetaKit. 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. 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. 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. Stanza Living, an India-based co-living company, raised a $102M Series B. The company previously raised more than $560 million and is backed by investors For full disclosures, please go to our Terms & Conditions page. 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. So now it's about 50% of our business. In conjunction with the round, Guesty said it acquired rival Your Porter just a month after buying MyVR. Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Sonder. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. But in the end, the pandemic didnt cause a housing meltdown or a meaningful deterioration in CEO pay. Placers data helped them understand and navigate the change.. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. WebLaunched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments The SPAC that Sonder will merge with, Gores Metropoulos II, raised $450 million in its initial public offering in January. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. In 2020, CoStars Andy Florance was compensated $21.3 million, according to the companys recently filed proxy statement. Oops! For more information, please visit www.gores.com. Last year, Sonder reached a valuation of $1.3 billion after a funding round. 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. The company scored a valuation of $2.2 billion in the deal and expects to reap $650 million in the offering, Reuters reported. Also, Sonder has access to $220 million debt facility with existing PIPE investors, to be available following the closing of the merger, which Sonder says will be enough to fund its growth over the next several years. 2021, Volt Equity (Volt). Takeaway: Regarding the 3 dimensions of price, design, and quality consistency, Sonder introduces technology to drive down the price dimension, so that it can score top marks on all 3. Volt does not purport to provide any legal, tax, or accounting advice. The pandemic was such a black-swan event that now we are even more robust when it comes to down-side investment. Takeaway: Given industry multiples and Sonder's growth rate, Sonder's valuation seems like the deal of a lifetime. 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. 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. 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 company currently operates in 70 countries, and CEO Amiad Soto said the funding will go toward market and tech expansion. In 2020, Sonder says they have 4,565 units. Media Contacts Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 2023. GORES HOLDINGS IX, INC. Gores Holdings IX, Gores fourteenth special purpose acquisition company, completes $525 Million IPO. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Sonders managements control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. served as legal advisor to Sonder. Media Contacts The And improving their Revenue per Available Room (RevPAR) from $74 to $165. WebSeptember 27, 2007 - The Gores Group, LLC and Investors Complete Purchase of Compudyne Corporation; August 7, 2007 - Compudyne Corporation Agrees to be Acquired by Investor Group for $7.00 Per Share in Cash .

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