Sonder (company) explained

Sonder Holdings Inc.
Type:Public
Traded As:NASDAQ:
Industry:Hospitality
Hq Location:San Francisco, California
Founded:, in Montreal, Quebec, Canada
Founder:Francis Davidson
Lucas Pellan
Martin Picard
Key People:Francis Davidson (CEO)
Revenue: [1]
Area Served:North America
Europe
Dubai

Sonder Holdings Inc. manages short-term rentals, such as apartment hotels, in North America, Europe, and Dubai.[2] [3] It was founded in Montreal, Canada in 2014 and since 2016 has been based in San Francisco, California.[4] [5]

Sonder manages over 9,000 units in over 40 cities in 10 countries and has served over 1 million guests.[6] It is the largest host on Airbnb.[7] Although it competes with Airbnb,[8] Sonder leases and manages its own rentals.[9] It targets travelers who prefer larger accommodations than a hotel room but want a more predictable experience than renting from an amateur host.[10] [11] [12] [13] Guests use a mobile app to check in and get customer support. The company outsources maintenance and housekeeping services.[14] [15]

History

In 2012, to earn extra money, Francis Davidson, a student at McGill University, began subletting his own apartment and managing apartments of out-of-town students in the summers.[16]

In 2014, Davidson and Lucas Pellan founded Flatbook, later renamed Sonder, and brought the company to FounderFuel, a startup accelerator in Montreal.[16]

In 2019, Sonder announced projects in Dallas,[17] Denver,[18] Miami,[19] New York City,[20] and Philadelphia.[21]

In March 2020, Sonder laid off 400 employees, one-third of its staff, due to the COVID-19 pandemic.[22] Later that year, the company rehired some people who had been laid off.[16] By June 2020, the company had raised over $550 million and was valued at $1.3 billion.[23]

In January 2021, the company announced a planned expansion in Quebec, including hiring 700 employees there over the next five years. Sanjay Banker was named president of Sonder, in addition to his role of CFO, and Satyen Pandya was named CTO.[24] In April 2021, Sonder reopened the Flatiron Hotel in Manhattan in April 2021, after signing a lease for the property in 2019.[25]

In January 2022, the company became a public company via a merger with a special-purpose acquisition company.[26] [27] Also in January 2022, the company signed agreements to operate three properties in Washington, D.C.[28] In June 2022, it was announced that the company would eliminate 21% of corporate roles and seven percent of frontline roles.[29] Among those laid off was the company's CTO.[30]

In August 2024, Marriott International announced a long-term licensing agreement with Sonder, adding 10,500 rooms to Marriott's portfolio and allowing customers to earn or redeem Marriott Bonvoy points starting in late 2024. [31]

Controversies

Fines by Boston

The city of Boston fined Sonder $11,700 in December 2019 under a new law banning absentee landlords from short-term rentals. Sonder, which accounted for 39 of the 288 such fines in the city, appealed.[32]

Neighbor opposition in Minneapolis

In 2019, the developer Sherman Associates agreed to reduce the number of units leased to Sonder in Minneapolis, Minnesota, after complaints from the neighbors regarding proliferation of short-term rental units.[33]

Notes and References

  1. Web site: Sonder Holdings Inc. Delays Fourth Quarter and Full Year 2023 Financial Results Announcement, and Shares Fourth Quarter and Full Year 2023 Preliminary Highlights . 2024-03-31.
  2. News: This Dallas Apartment Building's Sole Tenant Is a New Lodging Company . Morris . Keiko . . October 15, 2019 . subscription.
  3. Web site: Sonder Corp . Bloomberg L.P..
  4. News: Sonder Becomes Travel's Newest Billion-Dollar Brand After Raising $225 Million For Its Airbnb-Style Hospitality Business . Carson . Biz . . July 11, 2019 . limited.
  5. News: Montreal-founded Sonder raises $225-million in financing, plans to open second headquarters in Canada . STEFANIE . MAROTTA . . July 11, 2019.
  6. Web site: About Sonder . Sonder.
  7. News: Airbnb Arbitrage: How Professional Hosts Are Filling The Unicorn's Call For Quality Rentals . Sharf . Samantha . . September 27, 2019.
  8. News: Sonder Poised to Become Airbnb's Billion-Dollar Competitor . Roof . Katie . . April 25, 2019 . subscription.
  9. News: I spent a night in a swanky hotel-apartment hybrid rented out by Sonder, the $1 billion startup disrupting the hospitality industry. Here are 6 ways it was different from a typical Airbnb stay. . Katie . Warren . . December 17, 2019.
  10. News: In the Airbnb Era, Apartment Landlords Are the New Hoteliers . Putzier . Konrad . . December 10, 2019 . subscription.
  11. News: The 10 Best Alternatives to Airbnb . Megan . Barber . . September 24, 2020 . limited.
  12. News: How Companies Like Sonder & AirBNB are Changing the Way We Travel . Gina . Linder . . December 15, 2022 . limited.
  13. News: Part apartment, part hotel, Sonder moves into Seattle with its tech-enabled hospitality option . KURT . SCHLOSSER . . August 27, 2020.
  14. News: Why Sonder—a boutique hotel chain that operates like Airbnb—is a growing threat to the hospitality industry . AMY . FARLEY . . February 19, 2019.
  15. News: A Hospitality Brand for the Post-Pandemic Future . NATE . STOREY . . July 15, 2020.
  16. News: This 28-year-old turned his college side hustle into a $1.3 billion start-up backed by Jeff Bezos . Tom . Huddleston Jr. . . February 20, 2021.
  17. News: Planned Uptown Dallas tower would start as short stay rentals then switch to condos . Steve . Brown . . October 15, 2019.
  18. News: 10 major hotel projects expected to break ground in Denver in 2020 . BusinessDen . January 6, 2020.
  19. News: Sonder inks lease for flagship Wynwood hotel . Katherine . Kallergis . . December 2, 2019.
  20. News: New Renderings Revealed for 23-20 Jackson Avenue in Long Island City, Queens . Morris . Sebastian . New York YIMBY . October 21, 2019.
  21. News: Renters are being forced out of Old City apartments to make way for Philly visitors . Adelman . Jacob . Oppenheim . Oren . . August 21, 2019.
  22. News: Hospitality startup Sonder slashes workforce . . March 24, 2020.
  23. News: Hospitality Startup Sonder Raises $170 Million At A $1.3 Billion Valuation During Covid-19 Travel Collapse . Steven . Bertoni . . June 24, 2020 . limited.
  24. News: VC-backed Sonder beefs up executive suite . E.B. . Solomont . . January 12, 2021.
  25. News: Sonder to open in Flatiron Hotel next month . Orion . Jones . . March 16, 2021 . limited.
  26. News: Sonder Underwhelms in Public Debut . Dennis . Schaal . . January 19, 2022.
  27. News: SPAC sees stock drop after merger with S.F.-based Sonder . Alex . Barreira . . January 18, 2022 . subscription.
  28. News: Hospitality Startup Sonder Opening 3 New D.C. Locations . Jacob . Wallace . . January 12, 2022.
  29. Web site: Bote . Joshua . 2022-06-10 . SF startup once valued at $2B lays off a fifth of employees . 2022-06-11 . SFGATE . en-US.
  30. Web site: 2022-06-10 . Sonder Slashes Workforce by More Than 20 Percent, Including Top Tech Exec . 2022-06-11 . Skift . en-US.
  31. Web site: Marriott International Announces Long-Term Licensing Agreement with Sonder, Expected to Add Over 10,500 Rooms to Marriott's Open and Pipeline Portfolio . PR Newswire . Marriott International . 19 August 2024.
  32. News: Short-term rental companies, facing fines, fight Boston enforcement . SEAN PHILIP . COTTER . . December 22, 2019.
  33. News: Developer agrees to scale back short-term rentals at Minneapolis complex . Jim . Buchta . . July 16, 2019.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Sonder (company)".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.