Awaiting SPAC Merger, Sonder Outlines 2021 Growth
Tech-enabled hospitality provider Sonder added more than 25 new buildings across the U.S. to its portfolio in the second half of 2021, the company revealed last week. It included buildings in Boston, Miami, New York City, Philadelphia and Washington D.C. in the East; Atlanta, Dallas, Nashville, New Orleans and San Antonio in the central and mid-south regions; and Los Angeles, Palm Springs, San Francisco and Seattle in the western region. In addition to newly opened buildings, Sonder also contracted with a number of hotel and apartment style spaces across the country in the back half of 2021, the company said.
SPAC Deal Awaiting Approval
The announcement came a day ahead of special purpose acquisition company Gores Metropoulos II, Inc. holding a special meeting of its stockholders to finalize its proposed business combination with Sonder Holdings that would take the hospitality company public. Plans for the tie-up were announced last spring. GMII board of directors recommended that all stockholders vote for approval; however, the result of Friday’s vote is not yet known.
Should stockholders approve the move, Sonder’s common stock and public warrants are expected to be listed on Nasdaq under the ticker symbols “SOND” and “SONDW,” respectively. Sonder also expects to have approximately $310 million in private investment in public equity (PIPe) proceeds, up to $450 million in cash in Gores Metropoulos II’s trust account and $165 million of delayed draw notes to fund operations and support new and existing growth initiatives.
Corporate Demand Guided Expansion Strategy
Sonder announced earlier this month it had added over 100 new corporate travel accounts over the last year. Nearly half of Sonder’s corporate booked revenue was driven by corporate housing demand, particularly in the relocation niche. However, increased corporate travel demand from the technology, hospitality, retail, entertainment and healthcare industries influenced the company to expand into popular markets for corporate and group bookings like New York City, Philadelphia, London, Dublin, New Orleans, and Palm Springs.
“We’re incredibly pleased with the traction we’ve seen among this important travel segment since launching a dedicated team focused on this customer base just last year,” shared sales VP Kristen Richter. “Our continued growth and working with over 100 corporate clients has proven that there’s a significant need for thoughtfully designed, tech-enabled accommodations among these agencies and travelers.”
Terri Hardin www.businesstravelnews.com