Sonder Holdings Inc. Announces Strategic Licensing Agreement with Marriott International
Sonder Holdings Inc. (NASDAQ: SOND) has announced a strategic licensing agreement with Marriott International (NASDAQ: MAR). Key points include:
1. Over 9,000 Sonder units to join Marriott's portfolio by end of 2024
2. Sonder properties to be integrated with Marriott's distribution channels and Bonvoy program
3. Expected significant revenue opportunities and cost efficiencies for Sonder
4. Sonder secures ~$146 million in additional liquidity, including ~$43 million convertible preferred equity investment
5. Amendments to existing Note Purchase Agreement, including maturity extension and covenant holiday
The agreement aims to boost Sonder's revenue through increased distribution and deliver cost savings through synergies and scale.
Sonder Holdings Inc. (NASDAQ: SOND) ha annunciato un accordo di licenza strategica con Marriott International (NASDAQ: MAR). I punti chiave includono:
1. Oltre 9.000 unità Sonder entreranno a far parte del portafoglio di Marriott entro la fine del 2024
2. Le proprietà Sonder saranno integrate con i canali di distribuzione e il programma Bonvoy di Marriott
3. Anticipate significative opportunità di ricavo e efficienza dei costi per Sonder
4. Sonder assicura circa 146 milioni di dollari in liquidità aggiuntiva, inclusi circa 43 milioni di dollari di investimento in azioni privilegiate convertibili
5. Emendamenti all'Accordo di Acquisto di Note esistente, inclusa l'estensione della scadenza e la pausa da alcune clausole
L'accordo mira a incrementare i ricavi di Sonder attraverso una maggiore distribuzione e a fornire risparmi sui costi grazie a sinergie e scala.
Sonder Holdings Inc. (NASDAQ: SOND) ha anunciado un acuerdo de licencia estratégica con Marriott International (NASDAQ: MAR). Los puntos clave incluyen:
1. Más de 9.000 unidades Sonder se unirán al portafolio de Marriott para finales de 2024
2. Las propiedades Sonder se integrarán con los canales de distribución y el programa Bonvoy de Marriott
3. Se esperan oportunidades significativas de ingresos y eficiencias de costos para Sonder
4. Sonder asegura aproximadamente 146 millones de dólares en liquidez adicional, incluyendo aproximadamente 43 millones de dólares de inversión en acciones preferentes convertibles
5. Enmiendas al Acuerdo de Compra de Notas existente, incluyendo la extensión del vencimiento y la suspensión de ciertos convenios
El acuerdo tiene como objetivo aumentar los ingresos de Sonder a través de una mayor distribución y proporcionar ahorros de costos a través de sinergias y economías de escala.
Sonder Holdings Inc. (NASDAQ: SOND)가 Marriott International (NASDAQ: MAR)과 전략적 라이선스 계약을 체결했다고 발표했습니다. 주요 사항은 다음과 같습니다:
1. 2024년 말까지 9,000개 이상의 Sonder 유닛이 Marriott의 포트폴리오에 합류합니다.
2. Sonder 자산은 Marriott의 유통 채널 및 Bonvoy 프로그램과 통합됩니다.
3. Sonder에 대한 상당한 수익 기회와 비용 효율성이 예상됩니다.
4. Sonder는 약 1억 4600만 달러의 추가 유동성을 확보하며, 이 중 약 4300만 달러는 전환 가능한 우선주 투자입니다.
5. 기존 노트 매입 계약의 수정 사항으로는 만기 연장 및 일부 계약 조항의 일시 중지가 포함됩니다.
이번 계약은 Sonder의 배급 증가를 통해 수익을 높이고, 시너지 및 규모를 통해 비용 절감을 달성하는 것을 목표로 합니다.
Sonder Holdings Inc. (NASDAQ: SOND) a annoncé un accord de licence stratégique avec Marriott International (NASDAQ: MAR). Les points clés incluent :
1. Plus de 9 000 unités Sonder rejoindront le portefeuille de Marriott d'ici fin 2024
2. Les propriétés Sonder seront intégrées aux canaux de distribution et au programme Bonvoy de Marriott
3. Des opportunités de revenus significatives et des économies de coûts sont attendues pour Sonder
4. Sonder obtient environ 146 millions de dollars de liquidités supplémentaires, dont environ 43 millions de dollars d'investissement en actions privilégiées convertibles
5. Amendements à l'Accord d'Achat de Billets existant, y compris l'extension de l'échéance et une suspension de certaines clauses
L'accord vise à augmenter les revenus de Sonder grâce à une distribution accrue et à réaliser des économies de coûts grâce à des synergies et à des économies d'échelle.
Sonder Holdings Inc. (NASDAQ: SOND) hat eine strategische Lizenzvereinbarung mit Marriott International (NASDAQ: MAR) bekannt gegeben. Die wichtigsten Punkte sind:
1. Bis Ende 2024 werden über 9.000 Sonder-Einheiten zum Portfolio von Marriott gelangen.
2. Sonder-Immobilien werden in die Vertriebskanäle und das Bonvoy-Programm von Marriott integriert.
3. Erhebliche Einnahme- und Kosteneinsparungen werden für Sonder erwartet.
4. Sonder sichert sich etwa 146 Millionen US-Dollar an zusätzlicher Liquidität, einschließlich etwa 43 Millionen US-Dollar an wandelbarem Vorzugsaktieninvestitionen.
5. Änderungen an der bestehenden Note Purchase Agreement, einschließlich der Verlängerung der Fälligkeit und der Aussetzung bestimmter Vereinbarungen.
Das Ziel der Vereinbarung ist es, die Einnahmen von Sonder durch eine erhöhte Verteilung zu steigern und Kosteneinsparungen durch Synergien und Skaleneffekte zu erzielen.
- Strategic licensing agreement with Marriott International, potentially increasing revenue and distribution
- Integration with Marriott's extensive distribution channels and Bonvoy loyalty program
- Expected significant revenue opportunities and cost efficiencies
- Secured approximately $146 million in additional liquidity
- One-year maturity extension on existing Note Purchase Agreement to December 2027
- 30-month extension of paid-in-kind feature through end of 2026
- Covenant holiday related to Liquidity and Free Cash Flow through Q3 2025
- Sonder is not current on its overdue U.S. Securities and Exchange Commission reports
- Additional $28.6 million of Preferred Equity purchase is subject to becoming current on SEC reports
- Dilution of existing shareholders due to convertible preferred equity investment
The strategic licensing agreement between Sonder and Marriott is a game-changer for Sonder's business model. This deal is expected to significantly boost Sonder's revenue opportunities and cost efficiencies. By integrating with Marriott's distribution channels and Bonvoy program, Sonder could see a substantial uplift in RevPAR over time. The additional
This strategic agreement marks a significant shift in the hospitality landscape. Sonder's integration into Marriott's ecosystem offers a unique value proposition in the apartment-style accommodation sector. The deal allows Marriott to quickly expand its portfolio in the growing extended-stay market without significant capital investment. For Sonder, access to Marriott's 210 million Bonvoy members and global sales organization is invaluable. This partnership could potentially disrupt the traditional hotel model, blending Sonder's tech-forward approach with Marriott's established brand power. However, challenges may arise in maintaining Sonder's distinct identity within the Marriott system. The success of this venture will largely depend on seamless integration and effective cross-brand marketing. If executed well, this could set a new standard for hybrid hospitality models in the industry.
This strategic move by Sonder addresses several key business challenges simultaneously. Firstly, it significantly enhances Sonder's distribution capabilities, potentially reducing customer acquisition costs. Secondly, the agreement provides Sonder with brand legitimacy by association with a hospitality giant, which could be important for attracting both customers and property owners. The additional liquidity of
Strategic agreement expected to deliver significant revenue opportunities and cost efficiencies
Sonder also secures approximately
SAN FRANCISCO, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Sonder Holdings Inc. (NASDAQ: SOND or “Sonder”), a leading global brand of premium, design-forward apartment-style accommodations serving the modern traveler, today announced that it has entered into a long-term strategic licensing agreement with Marriott International, Inc. (NASDAQ: MAR or “Marriott”). Through this strategic agreement, over 9,000 live Sonder units are expected to join the Marriott portfolio by the end of 2024, with approximately 1,500 additional contracted units anticipated to join the Marriott system at later dates. Sonder’s properties, which consist of apartment-style accommodations and intimate boutique hotels, are expected to be fully integrated with Marriott’s extensive distribution channels, and be available for booking on Marriott.com and the Marriott Bonvoy mobile app as a new collection called Sonder by Marriott Bonvoy. Sonder’s properties are also expected to participate in the highly regarded Marriott Bonvoy travel program with over 210 million members, and gain access to Marriott’s global sales organization. Sonder anticipates that full integration with Marriott's digital channels and platform will occur in 2025; however, Sonder expects that Marriott.com will include link-offs to Sonder's digital platforms to support shop, book, earn and redeem by Marriott Bonvoy members and customers before the end of 2024. Sonder expects the strategic agreement to deliver significant revenue opportunities and operating efficiencies for Sonder.
“We're delighted about our strategic agreement with Marriott. Benefitting from the extensive distribution, loyalty program and sales capabilities of a global hospitality leader will help us to prioritize our core value drivers, including our unique guest experience, while unlocking significant opportunities for increased revenue and cost efficiency,” said Francis Davidson, Co-Founder and CEO of Sonder. “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.”
“We are excited about this new agreement, which is set to expand our portfolio of longer-stay accommodations in key markets around the world,” said Tim Grisius, Global Officer, M&A, Business Development and Real Estate, Marriott International. “Marriott has long believed in providing the right product at the right price point for all trip purposes and generations of travelers. With the planned addition of Sonder by Marriott Bonvoy, we will be able to provide guests seeking apartment-style urban accommodations with even more options in the Marriott Bonvoy portfolio.”
Compelling Benefits of Marriott Strategic Licensing Agreement
- Increasing revenue by integrating with Marriott’s commercial engine: Following full integration with Marriott’s extensive global sales and marketing capabilities, as well as with Marriott’s loyalty platform and distribution and booking channels, Sonder expects these sources of new and improved demand to drive substantial uplift in revenue per available room (“RevPAR”) over time.
- Delivering cost savings through synergies and scale: The full integration is expected to complement Sonder’s existing technology which powers end-to-end digital guest journeys and operating efficiencies. Sonder expects to realize substantial customer acquisition cost savings through improved distribution channel mix and preferred distribution channel rates.
- Powering future growth: Sonder believes that the strategic agreement with Marriott will enhance Sonder’s value proposition to real estate owners who can expect to realize the unique combination of Sonder’s product and Marriott’s distribution.
Strengthened Balance Sheet
Sonder also announced that it has enhanced its liquidity profile by approximately
- A consortium of investors (the “Investor Consortium”) has committed to purchase approximately
$43 million of a newly designated series of convertible preferred equity (the “Preferred Equity”) of Sonder. - Sonder’s existing noteholders have provided a total of approximately
$83 million in additional liquidity, including$4 million in financing funded on August 13, 2024, and approximately$79 million in the form of a 30-month extension (through the end of 2026) of the paid-in-kind feature of the Note Purchase Agreement (21 months of which is at Sonder’s option). - Other sources of liquidity totaling
$20 million .
The above is in addition to the previously announced
Janice Sears, Lead Independent Director of the Sonder Board of Directors, said, “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. 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.”
Terms of the Convertible Preferred Equity Transaction
Under the terms of the agreements with the Investor Consortium and Sonder’s existing noteholders, the Investor Consortium and Sonder’s existing noteholders purchased an aggregate of approximately
Holders of over
Additional information regarding the terms of the Preferred Equity will be provided in a Current Report on Form 8-K to be filed with the SEC.
Amendments to Note Purchase Agreement with Sonder’s Existing Noteholders
Sonder has entered into further amendments of its existing Note Purchase Agreement with a syndicate of Sonder’s existing noteholders, providing for (i) a one year maturity extension to December 2027, (ii) a 30-month extension of the paid-in-kind feature of the Note Purchase Agreement through the end of 2026 (21 months of which is at Sonder’s option), and (iii) a covenant holiday related to Liquidity and Free Cash Flow through the third quarter of 2025.
Additional information regarding these amendments will be provided in a Form 8-K to be filed with the SEC.
Advisors
Moelis & Company LLC is serving as financial advisor to Sonder and Kirkland & Ellis LLP is serving as legal counsel.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” or “will” or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements regarding improvements in liquidity and profitability; the anticipated benefits and synergies from the strategic licensing agreement with Marriott, including, but not limited to, the timing, scope and impact of Sonder’s participation in the Marriott Bonvoy loyalty program and Marriott’s distribution and booking channels and systems, including the anticipated integration period, initial link-off to Sonder’s digital platforms, and number of properties; statements about potential revenue opportunities, improved demand and RevPAR, operating efficiencies and cost savings, synergies and scale from the strategic licensing agreement with Marriott; anticipated enhancement of Sonder’s value proposition to real estate owners and potential growth; statements about the timing and amount of anticipated preferred equity funding and other sources of liquidity; statements about improving Sonder’s balance sheet and long-term profitable growth; and other information concerning Sonder’s financial and operating goals and estimated, possible or assumed future financial or operating results and measures, cash flow, or liquidity.
These forward-looking statements are based on management’s current expectations, estimates, and beliefs, as well as a number of assumptions concerning future events. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including but not limited to: the risk that the strategic licensing agreement with Marriott will not provide the anticipated benefits, including operating efficiencies and higher RevPAR over time; risks and uncertainties associated with the strategic licensing agreement with Marriott, including uncertainties related to the timing and extent of benefits, synergies, cost savings, and future revenue opportunities; uncertainties associated with the integration of Sonder’s portfolio with Marriott’s platforms, distribution channels, sales capabilities, and systems, including the risk of delays or unanticipated disruptions or complications; uncertainties concerning Sonder’s previously announced financial restatement process, including the possibility that additional accounting errors or corrections will be identified and the possibility of additional delays in Sonder’s SEC filings; uncertainties associated with Sonder’s liquidity, debt, and capital resources, including uncertainties associated with the satisfaction of conditions for and timing of the preferred equity financing and other sources of liquidity, and the risk that Sonder’s efforts to conserve cash will be unsuccessful and that additional funding or other sources of liquidity will not be available on acceptable terms or at all; the risk that Sonder will be unsuccessful in achieving positive free cash flow; and the other risks and uncertainties described in Sonder’s SEC reports, including its Current Report on Form 8-K dated as of the date hereof, and under the heading “Risk Factors” in its most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained herein speak only as of the date of this press release. Except as required by law, Sonder does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.
About Sonder
Sonder (NASDAQ: SOND) is a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Launched in 2014, Sonder offers inspiring, thoughtfully designed accommodations and innovative, tech-enabled service combined into one seamless experience. Sonder properties are found in prime locations in over 40 markets, spanning ten countries and three continents. The Sonder app gives guests full control over their stay. Complete with self-service features, simple check-in and 24/7 on-the-ground support, amenities and services at Sonder are just a tap away, making a world of better stays open to all.
To learn more, visit www.sonder.com or follow Sonder on Instagram, LinkedIn or X.
Download the Sonder app on Apple or Google Play.
Investor Relations:
Media:
Dan Moore / Tali Epstein
Collected Strategies
Sonder-CS@collectedstrategies.com
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