Sonder Holdings Inc. Reports Record Revenue for Q2 and Raises FY 2021 Revenue Outlook
Record Q2 2021 Revenue of $47.3M, Up 151% YoY
$100 Revenue per Available Room, Up 112% YoY and 30% vs. Q1 2021
Raises Outlook for FY 2021 Total Revenue to $180M - $190M vs. Initial Outlook of $173M
August 10, 2021 04:01 PM Eastern Daylight Time
SAN FRANCISCO--(BUSINESS WIRE)--Sonder Holdings Inc. (“Sonder” or the “Company”), a leading next-generation hospitality company that is redefining the guest experience through technology and design, today announced financial results for the three months ended June 30, 2021. Sonder delivered its strongest quarterly revenue in the Company’s history, driven by a robust recovery of leisure travel demand and the continued rapid expansion of its Live Unit portfolio.
“Q2 was an outstanding quarter for Sonder. We delivered our highest single quarter revenue in the Company’s history and more than doubled RevPAR year-over-year,” said Francis Davidson, Co-Founder and Chief Executive Officer of Sonder. “Our stellar results are a testament to our ability to attract and delight guests, as traveler preferences have evolved to seek out modern, tech-enabled spaces that fit a variety of needs and lifestyles. The inspired, tech-enabled design, consistent quality and compelling value that are hallmarks of the Sonder brand also position us to serve emerging travel trends such as long-term stays and digital nomadism.” Davidson continued, “We continue to outperform traditional hotel RevPAR during the pandemic – by at least 40% in each of the past two quarters. Our Total Portfolio continues to expand rapidly and we’re on track to surpass 18,000 units by end of year, which gives us confidence in our ability to hit the aggressive growth targets we’ve set for 2022 and beyond.”
“Given the strong RevPAR outperformance through the first half of the year, and the rapid addition of new units to our portfolio, we are raising our outlook for 2021 Total Revenue,” said Sanjay Banker, President and Chief Financial Officer of Sonder. “This increase from our initial outlook reflects Sonder’s belief that the recent surge in leisure travel recovery is sustainable and our proven ability to capitalize on this demand for better stays at an exceptional value.” The rebound in travel demand was underscored in a recent sonder report, conducted in partnership with Ipsos, indicating that a majority of U.S. adults have plans for personal travel in the coming months. In the nationwide survey of U.S. adults 18 years or older, roughly two-thirds (62%) of survey respondents indicated they will travel for personal reasons before the end of 2021. Another six-in-ten (59%) Americans were interested in being a “digital nomad” – or working remotely on a long-term trip – with interest higher among younger adults aged 18-34 (74%), followed closely by those planning to travel with kids (69%).
Second Quarter 2021 Financial Results and Corporate Highlights
- Total Revenue of $47.3 million, a 151% year-over-year increase and a 50% increase over Q1 2021
- $100 Revenue per Available Room (“RevPAR”), a 112% year-over-year increase and a 30% increase over Q1 2021
- 40% RevPAR outperformance versus traditional hotels (upper upscale hotels in cities where Sonder operates), up from a 10% discount to traditional hotels in Q2 2019 (normalized for pre-pandemic)
- Strong Occupancy Rate of 68%, up from 57% in Q2 2020 and 66% in Q1 2021
- Total Portfolio of approximately 5,500 Live Units and approximately 15,000 total Live and Contracted Units as of June 30, 2021
- Expansion into Amsterdam, Sonder’s seventh city in Europe, with the opening of a historic property built in 1860 overlooking the famous Vondelpark in the center of the city
- Announced corporate travel offering with launch on the Global Distribution System (GDS) and partnerships with a number of top travel management companies and consortia. Companies can now use Sonder for their business travel bookings, unlocking a significant new market opportunity for Sonder.
Combination with Gores Metropoulos II
As previously announced on April 30, 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. 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 sophisticated 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.
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 nine countries and three continents. 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.