|
purchase agreement ( 21 months of which is at Sonder ’ s option ). Sonder also has other sources of liquidity totaling $ 20 million .
The deal is expected to deliver significant revenue opportunities and operating efficiencies for Sonder . In a release , Sonder ’ s Co-Founder and CEO Francis Davidson said the group will benefit from Marriott ’ s extensive distribution system , loyalty program and sales capabilities . “ We look forward to welcoming Marriott Bonvoy members to our approximately 200 properties worldwide , creating new
|
opportunities for guests to enjoy Marriott ’ s award-winning loyalty program . Thank you to all our employees , guests , partners and stakeholders as we launch this exciting new chapter .”
The agreement will help Sonder in the following ways :
• Increase revenue by integrating with Marriott ’ s commercial engines : Following the full integration with Marriott ’ s sales and marketing capabilities , these sources of enhanced demand will drive RevPAR over time .
• Deliver cost savings through synergies and scale : The full
|
Sonder Woods Cove in Laguna Beach , Calif .
integration will complement Sonder ’ s existing technology . Sonder expects to realize significant customer acquisition cost savings through improved distribution channel mix and preferred distribution channel rates .
• Fueling more growth : The association with Marriott will enhance Sonder ’ s value proposition to real estate owners who can expect to realize the combination of Sonder ’ s product and Marriott ’ s distribution .
Founded in 2014 , Sonder has a collection of apartmentstyle
|
accommodations and small boutique hotels in urban markets in North America , Europe and the Middle East . Popular among young travelers , the properties leverage a digital-first operating model and cater to longer stays .
“ Today ’ s announcement is the result of deliberate and thoughtful planning by the board and the management team to best position Sonder to deliver value for all stakeholders . Sonder has been relentlessly focused on operational efficiency to deliver long-term profitability and these actions are the next step in achieving that goal ,” said Janice Sears , lead independent director of the Sonder Board of Directors . “ With significantly improved financial flexibility from the support of our lenders and investors , Sonder now has a stronger balance sheet to fuel its value creation strategy as it embarks on its next chapter , including the strategic licensing agreement with Marriott .”
Moelis & Company LLC served as financial advisor to Sonder and Kirkland & Ellis LLP served as legal counsel .
Francis Davidson , co-Founder and CEO , Sonder
|
|||
September 2024 hotelsmag . com 83 |