Sonder is upping its revenue guidance in the wake of its rapidly expanding portfolio growth and rebound in travel demand.
The hospitality start-up, which is in the process of going public via a merger with a special purpose acquisition company, raised its outlook for 2021 total revenue to $180 million - $190 million up from an initial outlook of $173 million.
In the second quarter, Sonder reported revenue of $47.3 million, a 151% year-over-year increase and a 50% increase over its previous quarter. Revenue per available room (RevPAR) was $100.
Net losses, however, widened from by 21.6% to $73.9 million.
“We continue to outperform traditional hotel RevPAR during the pandemic – by at least 40% in each of the past two quarters. Our Total Portfolio continues to expand rapidly and we’re on track to surpass 18,000 units by end of year, which gives us confidence in our ability to hit the aggressive growth targets we’ve set for 2022 and beyond,” CEO and co-founder Francis Davidson said.
Sonder’s business model sees working with real estate developers and property owners to lease, manage and operate spaces, which are then designed to give them a distinctive look.
The company operates across the world and has recently expanded into Amsterdam, its seventh European city. Sonder also recently announced its own corporate travel offering, launching on the Global Distribution System (GDS) and partnering with a number of travel management companies and consortia.