Articles tagged “sonder”

Good morning from Skift. It's Thursday, January 20, in New York City. Here's what you need to know about the business of travel today.

Sonder's delayed stock market debut came to be, finally. Now with a $310 million injection of proceeds from private investors, and tapping into a $165 million credit line, the company can go about its business trying to build the next household name hospitality brand.

Airbnb has been a savvy public relations practitioner throughout the years, and the volume of press releases the company churns out annually is legion. Brian Chesky's yearlong digital nomad stint aligns with the company's brand narrative and marketing strategy.

Omicron cases are still surging around the world, but major brands like Marriott and Radisson and brands-on-the-rise like CitizenM are all signaling moves to accommodate travel demand and operations for the other side of this latest variant.

Stock markets, at their best, can be hype killers, and public investors shot down many inflated private company valuations in 2021. This may be a sobering development for IPO and SPAC wannabes in 2022.

Several travel-oriented, special purpose acquisition companies are out there that have not announced merger partners. A SPAC glut and the lackluster performance of several online travel or short-term rental companies that recently went public could have some of the hunters coming up empty.

Will Sonder be a household name brand in accommodations in five years? The company hopes its Nasdaq debut in January, and a nifty $310 million in proceeds, will be the next stage in that evolution.

The vacation rental market is surging ahead, but that doesn't automatically lead to a profitable business for those operating in the space. But Vacasa's most recent quarter should give prospective investors more confidence.

Sonder debuted in France in the third quarter and expanded its presence in Mexico, but these development will all take a back seat if the company can indeed see its ticker symbol trading before the end of the year.

Sonder revenues are rising while its losses are widening, even as SPAC deals are coming under additional pressure. The new funding raised will help continue to focus on building the company and hopefully keep the economics in check enough to complete the deal.