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.”