Sonder Holdings Inc. (NASDAQ: SOND) had an incredible increase in the value of its shares today, with the most recent check seeing a 91.74% increase to $5.03. This notable increase comes after Sonder announced the signing of a crucial license deal with Marriott International, Inc., which was a game-changer for Sonder’s expansion plan.
Collaboration with Marriott International
Due to the long-term strategic license deal Sonder and Marriott have reached, by the end of 2024, approximately 9,000 active Sonder units will be part of Marriott’s vast portfolio. It is also anticipated that 1,500 additional contracted units would eventually be added to the Marriott system. Sonder, a company that specializes in offering boutique hotels and apartment-style lodging, is expanding significantly with this partnership.
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Sonder’s properties will be incorporated into Marriott’s global distribution channels, resulting in the launch of a new collection dubbed “Sonder by Marriott Bonvoy,” which will be accessible on Marriott.com and the Marriott Bonvoy mobile app.
Expected Growth in Revenue and Enhanced Operational Efficiency
By 2025, Sonder anticipates having fully integrated with Marriott’s digital platforms. In the interim, Marriott.com will feature links to Sonder’s digital platforms, allowing customers and Bonvoy members to shop, book, earn, and redeem points through Sonder’s services by the end of 2024.
The strategic agreement is projected to generate substantial revenue opportunities and operational efficiencies for Sonder. Leveraging Marriott’s extensive distribution, loyalty program, and sales capabilities, Sonder aims to prioritize its core value drivers, such as offering a unique guest experience, while unlocking significant opportunities for revenue growth and cost efficiency.
The full integration with Marriott is expected to significantly boost Sonder’s revenue per available room (RevPAR) over time, driven by improved demand through Marriott’s commercial engine. Additionally, Sonder anticipates considerable savings in customer acquisition costs due to enhanced distribution channel mix and preferred distribution channel rates.
The collaboration with Marriott is poised to strengthen Sonder’s value proposition to real estate owners by combining its innovative product offerings with Marriott’s robust distribution network. In a related development, Sonder has also bolstered its liquidity profile by approximately $146 million, positioning the company for sustained profitable growth and successful integration under the strategic agreement with Marriott.
