SAN FRANCISCO: 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 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.