Q1 2021 Revenue of $31.6M grew 11% compared to
Q4 2020
$77 Revenue per Available Room, Outperforming
Traditional Hotels by 2.1x
Reaffirms Outlook for FY 2021 Revenue Growth of
49%
Gores Metropoulos II, Inc. Files Form S-4 in
Connection with Previously Announced Business Combination
Sonder Holdings Inc. (“Sonder” or the “Company”), a leading
next-generation hospitality company that is redefining the guest
experience, today announced financial results for the quarter
ending March 31, 2021. Sonder delivered robust unit and revenue
growth, driven by strong indicators of a resurgence in travel
demand. The Company believes its results show the differentiated
value of its technology-enabled experience for both guests and real
estate owners. In April 2021, Sonder entered into an agreement to
combine with Gores Metropoulos II, Inc. (“GMII”) (Nasdaq: GMIIU,
GMII and GMIIW), a special purpose acquisition company sponsored by
affiliates of The Gores Group, LLC and Metropoulos & Co. In
connection with its previously announced proposed business
combination, GMII today announced the filing with the U.S.
Securities and Exchange Commission ("SEC") of a registration
statement on Form S-4 (the "Registration Statement"), which
contains a preliminary proxy statement/prospectus/consent
solicitation statement.
“We’re thrilled with our strong first quarter results, which
exceeded expectations across all key performance metrics. This
momentum has continued to intensify through April and May,
underscoring the start of what we expect to be a historic travel
and hospitality rebound,” said Francis Davidson, Co-Founder and
Chief Executive Officer of Sonder. “We anticipate demand will
continue increasing as more people feel safe to travel again,
creating significant and sustainable tailwinds for Sonder during
the traditional peak leisure summer season and beyond. We believe
that our tech-enabled, contactless experience provides reassurance
to travelers emerging from the pandemic, and that we are well
positioned to meet those needs with comfortable and inspiring
spaces across the globe.”
“We had an exceptionally strong Memorial Day Weekend this year,
with Average Daily Rates (“ADR”) achieving 95%+ of 2019 Memorial
Day Weekend levels, and we’re continuing to see this accelerating
ADR momentum into Q2 2021, highlighting the increase in travel
demand relative to the start of the pandemic,” said Sanjay Banker,
President and Chief Financial Officer of Sonder. “Given the strong
start to the year, we are re-affirming our outlook for 2021 full
year revenue growth of 49%, as well as our objective to grow our
Total Portfolio by over 6,000 units (over 50% growth) this
year.”
First Quarter 2021 Financial Results and Corporate
Highlights:
- Total Revenue of $31.6 million, an 11% increase compared to Q4
2020
- $77 Revenue per available room (“RevPAR”), representing 64% of
Q1 2019 (normalized pre-COVID-19 pandemic) levels, and 78% of Q1
2020
- RevPAR outperformance vs. Traditional Hotels (upper upscale
hotels in cities where Sonder operates) of approximately 2.1x, up
from 0.9x in Q1 2020
- 66% Occupancy Rate, up from 63% in Q1 2020, representing the
highest year-over-year improvement since Q2 2019
- Total Portfolio growth to approximately 5,000 Live Units and
over 13,000 total Live and Contracted Units as of May 31, 2021
- Expansion into Spain with the addition of live properties in
Barcelona and Madrid
Combination with Gores Metropoulos II
As previously announced on April 30, 2021, Sonder entered into
an agreement to combine with GMII. As part of the transaction,
Sonder and GMII raised a $200 million fully committed PIPE, led by
an affiliate of The Gores Group, with participation from top-tier
institutional investors, including Fidelity Management &
Research Company LLC, funds and accounts managed by BlackRock,
Atreides Management, LP, entities affiliated with Moore Capital
Management, Principal Global Investors, LLC, and Senator Investment
Group. The closing of the transaction and PIPE financing, which is
expected to occur in the second half of 2021, is subject to certain
customary closing conditions, including, among others, regulatory
review and approval by GMII’s stockholders.
“We are confident that entering the public markets through our
merger with Gores Metropoulos II will enable us to best capitalize
on this momentum and our significant, growing market opportunity,
further solidifying our position as the iconic 21st century brand
in hospitality," continued Davidson.
Further information about Sonder and its full first quarter
fiscal year 2021 results can be found in the registration statement
on Form S-4 and preliminary proxy statement/prospectus/consent
solicitation statement contained therein that has been filed by
GMII with the SEC.
While the registration statement has not yet become effective
and the information contained therein is subject to change, it
provides important information about Sonder and GMII, as well as
the proposed business combination.
About Sonder
Sonder is revolutionizing hospitality through innovative,
tech-powered service and inspiring, thoughtfully designed
accommodations combined into one seamlessly managed experience.
Officially launched in 2014 and headquartered in San Francisco,
Sonder is making a world of better stays open to all with a variety
of accommodation options — from rooms to suites and apartments —
with Live Units in 35 markets spanning eight countries and three
continents (as of May 31, 2021). Sonder’s innovative app empowers
guests by making self-service features and 24/7 on-the-ground
support just a tap away. From simple self check-in to boutique
bathroom amenities, we bring the best of a hotel without any of the
formality.
To learn more, visit www.sonder.com or follow Sonder on
Facebook, Twitter or Instagram. Download the Sonder app on Apple or
Google Play.
About Gores Metropoulos II, Inc.
Gores Metropoulos II, Inc. (“GMII”) (Nasdaq: GMIIU, GMII and
GMIIW) 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. GMII 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. Mr. Gores
and Mr. Metropoulos together have more than 65 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.
Over the course of their careers, Mr. Gores and Mr. Metropoulos and
their respective teams have invested in more than 180 portfolio
companies through varying macroeconomic environments with a
consistent, operationally-oriented investment strategy. For more
information, please visit www.gores.com.
Sonder’s Use of Non-GAAP Financial Measures
Sonder supplements its consolidated financial statements
presented in accordance with generally accepted accounting
principles in the United States (“GAAP”), by providing additional
financial measures that are not prepared in accordance with GAAP,
including Adjusted Gross Profit, Property Level Costs, Property
Level Profit and Adjusted EBITDA. Sonder believes that the
disclosure of these non-GAAP financial measures provides investors
with additional information that reflects the amounts and financial
basis upon which Sonder’s management assesses and operates its
business. Sonder’s definition may differ from the definitions used
by other companies and therefore comparability may be limited. In
addition, other companies may not publish these or similar metrics.
These non-GAAP financial measures should not be viewed in isolation
or as a substitute for, or superior to, measures prepared in
accordance with GAAP.
Key Terms
Sonder’s Total Portfolio represents Live Units plus
Contracted Units. This includes any unit that has a signed real
estate contract, regardless of whether or not the unit is available
for guests to book. This excludes any units that have been dropped
(i.e., the lease was terminated or allowed to expire). Live
Units are defined as units which are available for guest
bookings on Sonder.com, the Sonder app and other channels. Sonder
pays rent (or utilizes pre-negotiated abatement) and is able to
generate revenue from these units. Contracted Units are
units for which Sonder has signed real estate contracts, but are
not yet available for guests to book. Sonder is not yet able to
generate revenue from these units.
Sonder defines Occupancy Rate (“OR”) as Occupied Nights
divided by Bookable Nights, expressed as a percentage. Bookable
Nights represent the total number of nights available for stays
across all Live Units. This excludes nights lost to full building
closures of greater than 30 nights. Occupied Nights
represents the total number of nights occupied across all Live
Units.
Revenue Per Available Room (“RevPAR”) represents the
average revenue earned per available night, and is calculated by
dividing revenue by Bookable Nights. Average Daily Rate
(“ADR”) represents the average revenue earned per night occupied
and is calculated as revenue divided by Occupied Nights.
Additional Information and Where to Find It
Additional information about the proposed business combination,
including a copy of the Merger Agreement provided in a Current
Report on Form 8-K filed by GMII with the SEC on April 30, 2021,
and a copy of an updated investor presentation provided in a
Current Report on Form 8-K filed by GMII with the SEC on July 7,
2021, is available at www.sec.gov. In connection with the proposed
business combination, GMII has filed a registration statement on
Form S-4 (the “Registration Statement”) that includes a preliminary
proxy statement, prospectus and consent solicitation statement with
respect to GMII’s securities to be issued in connection with the
proposed business combination. The Registration Statement is not
yet effective. The Registration Statement, including the proxy
statement/prospectus/consent solicitation statement contained
therein, when it is declared effective by the SEC, will contain
important information about the proposed business combination and
the other matters to be voted upon at a meeting of GMII’s
stockholders to be held to approve the proposed business
combination and other matters (the “Special Meeting”) and is not
intended to provide the basis for any investment decision or any
other decision in respect of such matters. GMII may also file other
documents regarding the proposed business combination with the SEC.
GMII stockholders and other interested persons are advised to read,
when available, the Registration Statement and the proxy
statement/prospectus/consent solicitation statement, as well as any
amendments or supplements thereto, because they will contain
important information about the proposed business combination.
When available, the definitive proxy
statement/prospectus/consent solicitation statement will be mailed
to GMII 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. GMII investors and
securityholders will also be able to obtain copies of the
definitive proxy statement/prospectus/ consent solicitation
statement, without charge, once available, at the SEC’s website at
www.sec.gov or by directing a request to: 6260 Lookout Road,
Boulder, CO 80301, attention: Jennifer Kwon Chou, or by contacting
Morrow Sodali LLC, GMII’s proxy solicitor, for help, toll-free at
(800) 662-5200 (banks and brokers can call collect at (203)
658-9400).
Participants in Solicitation
GMII, Sonder and their respective directors and officers may be
deemed participants in the solicitation of proxies of GMII
stockholders in connection with the proposed business combination.
GMII stockholders and other interested persons may obtain, without
charge, more detailed information regarding the interests of those
persons and other persons who may be deemed participants in the
proposed business combination by reading GMII’s registration
statement on Form S-1 (File No. 333-251663), which was declared
effective by the SEC on January 19, 2021, and the proxy
statement/prospectus/consent solicitation statement regarding the
proposed business combination.
You may obtain free copies of these documents as described in
the preceding paragraph.
Forward-Looking Statements
This press release contains a number of “forward-looking
statements” as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not
limited to, statements about Sonder’s forecasted revenue growth,
Sonder’s growth in total unit portfolio, information concerning
GMII’s or Sonder’s possible or assumed future financial or
operating results and metrics, business strategies, debt levels,
competitive position, industry environment, potential growth
opportunities, future operations, products and services, planned
openings, expected unit contractings and the effects of regulation,
including whether the proposed business combination will generate
returns for stockholders. These forward-looking statements are
based on GMII’s or Sonder’s management’s current expectations,
estimates, projections and beliefs, as well as a number of
assumptions concerning future events. 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. 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
GMII’s or Sonder’s management’s control, that could cause actual
results to differ materially from the results discussed in the
forward-looking statements. 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 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 GMII or other
conditions to closing in the Merger Agreement; (c) the ability to
meet Nasdaq’s listing standards following the consummation of the
proposed business combination; (d) the inability to complete the
PIPE; (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 SEC’s statement on accounting and reporting considerations for
warrants in special purpose acquisition companies); (i) the
possibility that Sonder may be adversely affected by other
economic, business and/or competitive factors; (j) risks related to
the impact of the COVID-19 pandemic; and (k) 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 GMII from time to time with the SEC. You are cautioned not
to place undue reliance upon any forward-looking statements, which
speak only as of the date made. Except as required by law, neither
GMII nor Sonder undertakes any obligation to update or revise its
forward-looking statements to reflect events or circumstances after
the date of this release. Additional risks and uncertainties are
identified and discussed in GMII’s reports filed and to be filed
with the SEC and available at the SEC’s website at www.sec.gov.
No Offer or Solicitation
This communication relates to a proposed business combination
between GMII and Sonder. This document does not constitute an offer
to sell or exchange, or the solicitation of an offer to buy or
exchange, any securities, nor shall there be any sale of securities
in any jurisdiction in which such offer, sale or exchange would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210707005421/en/
For Sonder: Media Contacts Finsbury Glover Hering
press@sonder.com
Investor Contacts Chris Mammone, The Blueshirt Group
ir@sonder.com
For The Gores Group and affiliates: Jennifer Kwon Chou
Managing Director The Gores Group 310-209-3010 jchou@gores.com
OR
John Christiansen/Cassandra Bujarski/Danya Al-Qattan Sard
Verbinnen & Co GoresGroup-SVC@sardverb.com
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