Sonder

Sonder is a short-term rental startup that acquires and refurbishes apartments in popular urban areas and offers them for rent through various channels, including Airbnb, Expedia, and its own website. The company typically enters into three- to five-year leases (including fixed leases and mixed leases) or revenue-sharing agreements with landlords to occupy entire floors of buildings. Sonder’s contracts include provisions that reduce rates during economic downturns, such as a clause that decreased rents by 8% during the pandemic. Unlike other home-sharing firms that have faced difficulties with local lodging regulations, Sonder either holds hotel licenses or operates in buildings that permit short-term rentals. 

Its apartments offer hotel amenities, such as professional cleaning services, fresh designs, and a concierge service accessible through an app. With the help of its app and digital door locks, guests can check in to their rooms without any face-to-face interactions. As a result, Sonder's offering was well-suited for maintaining social distance during the pandemic. Sonder aims to extend its reach by expanding to other regions, including Asia. Sonder is also planning to broaden its offerings to include properties such as resorts, villas, and residences. Moreover,  Sonder aims to establish a franchise model and sell its software solutions to outside operators. In July 2023 , Sonder launched its first hotel collection, ‘Powered by Sonder’, a collection of boutique hotels, each with its own distinctive design aesthetic, utilizing Sonder's technology and operated by the company.

As of January 2023, Sonder served more than one million guests in more than 9,000 live units, across more than 40 cities and 10 countries. It is expected to grow its portfolio to 56,000 units by 2024. 

Key customers and partnerships

In September 2022, Sonder partnered with RateGain Travel technologies to strengthen its presence on the GDS by introducing its own dedicated chain code titled SS. Previously, in October 2021, Sonder partnered with Hotel Engine, a lodging performance network, to offer its services to its network of over 550,000 business travelers.

Funding and financials

In January 2022, the company concluded its business combination with Gores Metropoulos II, Inc. to list on Nasdaq. In the process, Sonder obtained ~USD 310 million in funding. In FY2022, Sonder nearly doubled its YoY revenue to USD 462 million, although adjusted EBITDA was negative and worsened by 3% YoY to USD 217 million. The adjusted EBITDA loss was attributed to investments made in conjunction with its SPAC merger and expansions in its property portfolio.