SOND - Earnings call transcript Q4 2021

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Operator

Thank you for standing by and welcome to Sonder Fourth Quarter and full-year 2021 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the call over to Nicolas Chammas, VP of Strategic Finance and Investment Analysis.

Nicolas Chammas

Thank you, Operator. gentlemen. and ladies morning, Good Thank you and Sonder's Quarter to joining XXXX financial us full-year discuss results. Fourth for

Joining website me quarter found and Relations on and the available can results call today are be commentary management XXXX at Officer Full of of are Sanjay section shareholder and Officer. which additional Chief our Francis Investor and Banker, full-year Financial on President fourth investors.Sonder.com. the Chief in details our our and Executive Davidson, Co-Founder letter,

you the remind operating Q&A opportunities here. discussed to differ the to like following end uncertainties the I'd start, financial results we market and that session and to risks materially contain that discussion Before from and Sonder involve future and forward-looking not may those the that results at cause statements, including limited actual

the your forward-looking and factors any implied or otherwise, law. discussion current could responses non Sonder's result of new assumes - or periodic financial SEC that And those call, Sonder conference actual and as be in cause required risks in from differ including results found as statements information other Additional update discussion expectations obligation The following about them, of Are of to on in expressed to to today. no a or measures. developments as Also, revise based the by this except forward-looking can questions. statements whether our filings. GAAP contains

Relations GAAP, financial see website. - Investor to and comparable non a most posted GAAP in measure measures presented letter to our reconciliation please these of with For calculated financial the shareholder our accordance directly

CEO. Francis to call Now, I turn the Davidson Solder's will Co-founder and over

Francis Davidson

ended be in for call. pleased us you I'm became company for Good We strong full-year XXXX Nick. and to afternoon January. our inaugural with great earnings and Thanks, a listed on and momentum results. today Nasdaq fourth-quarter our XXXX very joining everyone reporting thank

us year will disruptive for balance the to on a opportunities We up excited another and entering with and Despite row, the challenging XXXX year. capitalize QX growing from accelerated that we milestone with sector, QX finished really sheet our the XXX% we travel are QX revenue in in a quarters recovery versus model. to revenues very this allow hospitality strong growth XXX% the lean and for year three in opens about the reaching XXX% year-over-year it into prior

in flow addition, burn from improved progress by year-over-year XXXX XXX% our We're the encouraged our on as QX a to continue made in cash we've revenue profitability. free of we QX, meaningfully In to path XX% revenue XXXX. of here

world to powered and believe accommodations our Our in growth $X by a to in operations shareholders. high-quality, in our mission focusing this the we Millennial's tech-enabled We is experience. drive for better, efficient and which strategy instill revolution paired affordable with we nearly believe pursued industry. trillion way win on ambitious technology key proprietary value levers, Throughout five modern, long-term more will while Gen that guest a the and experience guest more is design our love forward particular of and consistent hospitality. Z, Travelers, XXXX,

Our incredible first an lever experience. is delivering guest

including bookings single sonder.com We guest our exceptional through for our global deliver continues consistently rapidly We direct scale experience, bookings to channel even minimal XXXX, the service, we have quality. out our metric focus largest as our inspiring tracking and automated on despite satisfaction the great rolling for the costs, for enabled us consistent improving Sonder. bookings we customer bookings experience made modern on and an as brand the guest and request, higher an rolled bookings and track we spend cash XXXX. internally in guest believe strides well for relentless delivering such flows as messaging proxy Technology of our improved XX% value, guests, improved design, resulting footprint. a sonder.com, One will communication of as experience to in-app in encouraged enable late new higher metrics We direct and features the total with lifetime also loyalties, out strength early guest checkout check-in and and better lower by total and guest’s marketing as we to of are and successfully seamless early more Sonder acquisition in increased RevPars, in to XX% translate QX accounted customer be results. loyalty, app

securing at properties attractive is high-quality economics. lever second Our

locations and our of over properties major more is unit XXXX, superior growth One source, City. XX and our than open York in added destinations, Dubai, to unit City, U.S. our desirable and with economics. Miami, the of In top international new New live to portfolio Mexico Nashville, including hotels apartments top-line drivers we markets and high-quality tourist across ability sign, and XX

XXXX prospects we portfolio of and the representing our of as units total Our by Through X,XXX grew Owners, new the their grow systems unique of in Estate supply proposition XX% and improve continues also beyond. and XX,XXX capture better have a enable to XXXX, And deals with processes ended over to pipeline value even year year-over-year growth. result assets. to size our who with units, Real Team of us put scaled us to and our we've faster clip monetize and partner Real place Estate in to

upgrades major growth lags generate runway tailwinds, -pandemic still exciting According monetizing we revenue enhance monetization. levels. to of to and research, And XX% of ahead is the on improved broader include RevPar given Meanwhile, of fourth growth -pandemic demand one by performance the to near-term, milestone the since tracked benchmarks night. guest This opportunities RevPar demand pandemic. benefit is quarter, strong distribution our market was levels new as will first tactics, Even time for [Indiscernible] XXXX travel capabilities, as any onset innovative reached travel to dynamic with $XXX year-over-year our In own the We growth, our market per the well in to capacity a unique of success as and the into us recovered our RevPars a surpassed RevPars. stronger achieved key a the we pre still initiatives more These pursuits Our pools like XXXX travel, cleanings. pre of ciliary generation the unit and combined our interstate RevPars as leisure XX% market travel. RevPar management third U.S. expansion our corporate out-performance of upper and from XXXX. we upscale RevPar revenue this our lever initiatives improvement value recovery in attribute for such proposition hotels of XX% only RevPars. XXXX

ever fuel growth STR in as during grow sequential to expect RevPar comparable and macro to has project acknowledge Importantly, demand that uneven. growth corresponding and the potential travel we XX% our recovery by the trajectory overall hotels we the make Despite environment to strong XXXX. RevPar overall our momentum changing the travel XXXX, market quarter-over-quarter recovery

beginning pre we from a Omicron late and QX effects booking -Omicron example, dampening XXXX, For been experienced into encouraged year. resurgence however, this by in of November, patterns. of recently, we've More

lever is to continue driving efficiencies. fourth Our operating

property several or operations. Our efficiency. core us cut initiatives cost service philosophy increase to structure. improving In we goal has introduced sufficiency boost our always XXXX, which cost been levels to to reduce level with the The our of directly RevPar, use inefficiencies allows mindset technology from

we've turnover of to piloted a re-architecture example, our operations back-of-house improve For productivity. our room

additional support connected and Sonder to efficiencies. adoption functions improved our mobile features of also Internet by has of we increased app our utilization rollout guest our shifted The various expanded and which thermostats has further rollout lower-cost geographies. on self-service app also guests service We

we that our firmly our lever Our and The and fifth final the back believe XXXX. pandemic in set work for and Sonder execution. at we but defines tone the people impressively bounced is how our the onset that culture results, team of the our who work and people tested innovation culture

to team We among about Our to exceptional uniquely as the key front-line retain nomadic our very serve. experiences engaged One world. to also to call model better our no suited selves our talent means which our a survey employees. engagement of move to And best enable in care XXXX. allow anywhere we and explore teams. the is those model. the recent pool that to front-line and broadens our XXXX, trend believe additional work work work what constrained, believe our trust most what's results we internal about guest they that meet their notable spaces, in allows delivering choice committed team demand It the strategy to our pent-up successful from at team capital Plus, work change and non And from our do to around At best is will end Sonder. a reveal we for longer we retention will team that our geographically our ready our day, highly choose. human work bring recruiting initiatives choice support was them, excited employees Sonder is work. formal to and to for us historic we're turn, attract directly of opportunity the markets and We're our

business. steps addition XXXX formerly We generation also with to provide and Weston phenomenal Bank us our public make board further strengthen that's turn over and financial with our to more And highly hospitality and supply industry we accomplished at and as named will our leaders global to on in our have Both Spears, to are Sanjay group took bring success. a And call what Merrill chair. depth in XXXX. our this a XXXX America CFO, In key recent that of year great committee entered of really that important appointed on Banker Technology these performance who we We're a President our engine director and to Perez-Alvarado allows experience update capabilities to in an against and benchmarks. to audit levers, We proud coming. knockout hotel also to Lynch, Janet our our women to outlook. I ready beat executing with of region Hilda the growth we details the you governance. five managing our JLL, engaged that, growth team, Board. consistently Demand relevant to experience CEO operate efficiently company head

Sanjay Banker

record to XXth. fresh Sonder in January balance Francis. in welcome All quarter Sonder you, on our event you. us capital I'd public like and look place secured now of approximately both revolutionize full-year fourth and an tirelessly that of to hospitality. the as $XXX XXXX. million plans our milestone to Thank forward took the public all ambitious important which journey, And funding we was This with sheet, for the results to our working working enabling you which I major so enter while company, to strengthen to proud a pursue also markets, in

There quarter the increased quarters. revenue fourth million, metrics, XXXX. our RevPar. to operating in consecutive increase XXXX, prior are bookable Improved In slide $XX for to prior offering, units, operational isn't XXX% nights, XXXX XX% of quarter technology we year-over-year our revenue, testament occupied full-year to and the key including an total year quarter Xrd a and with fourth more our proprietary Turning differentiated XXXX portfolio, doubled and year-over-year and excellence. meaningfully our results full-year than revenues nights, the representing record versus versus delivered an $XXX total million versus

growth addition, ongoing fueled growth a increase XXXX, the our Global Travel in travel QX, improved unit XXX% loss margin from nights EBITDA corporate large driving from a bookable XX% year-over-year by mid-XXXX as to loss in XXXX. launch, Our Leisure our improvement in In initiatives rebounding QX early traction various RevPars such was adjusted strong and live

total our side XX% side view to supply considered and most year-over-year portfolio supply growth the contracted it portfolio total On supply. year-end of metric provides be XX% XXXX We and important grew best live units forward-looking future respectively. our the by as

units years. of XX,XXX live believe we which XXst, next total Our growth to as grew strong unit two will December the drive portfolio over

directly XXXX Mobile guests Sonder addition, which OTA can partners on sites. App or live book increasingly an on In website do we over or ended units, X,XXX with an the our

unit XXXX. million As a in and two nights result increased bookable our to QX bookable of at by growth, contributed over live nights year-over-year XXXX XX%

basis full-year XXXX, demand saw a we in and a XX% XXX XX% QX point rates XXXX. representing the improvement for occupancy from full-year On strong of side,

daily our and prior ADRs or QX year. average rates $XXX, In increase versus addition, XX% the were

representing strong led rate XX% and of year-over-year. increase Our an to XXXX, of occupancy ADRs in QX RevPar $XXX

versus of QX our seeing levels our market with reached by the outperformance RevPar we're and XXXX Importantly, initiatives. market, improvement XXX% recovery, RevPar QX fueled was traction and the our

Lastly, XX% full RevPar year to our increased year-over-year XXXX $XXX.

played XXXX measurable was a that while maintained our restrictions, travel. line some the of evident suggesting we new see late travel As both Francis the average travel to very this and QX cases we We year unwillingness mentioned, fourth we ADR pent-up affected XXXX. The New with RevPar, length last performance a did into in Omicron larger of the consumer’s Omicron ADR inability delivered doubled the quarter year. Year's and eve business RevPar greater of in day December, impacts exceeded and travel to in the XXXX. in Omicron impact surge in our role were geographies and nearly Despite by demand in which on on in same was in five-night levels stay in

our addition, London, bookings In offset markets and Minneapolis, and plus Houston. slower Dubai, seasonality XX-day travel recovery Boston, like helped typical Chicago, extended leisure stay us New in York,

the $X $XX In fourth improved million. terms loss our a profitability, million year by versus quarter of level of loss property prior to

of loss adjusted Our $XX million by EBITDA $X million. a to fourth loss improved quarter approximately year-over-year

QX of revenue were primarily meaningfully RevPar growth with to recovery in XX% strong improved revenue fueled and year-over-year in QX, by addition, operational cash XXXX. percentage XXX% flow improved In free from These a as improvements efficiency. XXXX burn combined our

For by XX% a full-year loss driven primarily improvement. property level XXXX, to loss $XX improved by RevPar of million

full-year Our levels. -pandemic pre a XX% was meaningfully XXXX, that's RevPar still XXXX improvement below $XXX, versus for

EBITDA which adjusted of costs loss XXXX in increase live compared to despite XXXX, loss X% portfolio. represented decline of unit a expansion an $XXX -opening rapid Our our was pre million, with associated a

quarter. the required year-over-year as research to million Additional expense development by were Sonder guest and QX, and primarily costs a Total app for on compensation stock-based and costs company. increased of expenses investments, driven and by focused a inclusive incremental in of million investments $XXX expenses the the additional guests. public our experience enhancing in $X.X in Total to XX% XXXX, operate cost

the travel our and related in A Additional G investments to and our ongoing company prepare needs increased out corporate unit growth build XX% related portfolio. expected and of the expenses as sales expansion almost and portfolio costs count beyond. operations large to XXXX in our public to employees year-over-year marketing for we of capabilities, rapid Moreover, our support unit our rapid live and of global the head XXXX growth our to

$XXX XXst cash with raised In to December year-end. XXXX, restricted in taking the we of company approximately As million January, $XX we of cash conjunction in public proceeds. million and subsequent had net

of cash us gives shareholders. the invest consistently generating while sheet the for to high confidence our improving balance continue current Our the growing technology experience guest free to through in flow prudently with goal

the versus and first anticipate year than first XXX% $XX due growth, more entered we in Turning in XXXX. of of about our this market units, us. to In as our million of million, outlook, growth improved live a we night well large with in are ahead opportunity the revenue as quarter optimistic strong and quarter trajectory year-over-year RevPar. momentum the of bookable we representing Primarily $XX to XXXX,

temporary the start further in to slowdown Omicron our concerns seasonality the leisure In quarter we weakest related a Moreover, terms of is RevPar year. less restrictions. travel due due by typically to expect at of travel the first to be year and impacted first the of this quarter bookings

late wasn't to began in saw impact are we forward a we some from months. impact until January which XXXX, on The November felt experience and seasonal revenue, bookings. weakest typically Specifically, in our where slowdown February, however, Omicron

As meaningfully we QX improve expect decline RevPar year-over-year XXXX, XXXX. a QX QX result, versus XXXX still but versus to

operations QX margin improvement QX adjusted in XXXX. an million our portfolio XX this recovery to XXXX a QX of expected from portfolio to support continue adjusted unit EBITDA our XXX% therefore expect This also expand to in as approximately we as in our growth and scale functions a in loss to EBITDA And mode. in our remains live G&A expected losses loss year. increase to We RevPar rapidly represents XXX%

EBITDA benefits of of lower upfront Therefore, of reminder, rents and than in initial operations. CapEx and and payments, received abatement FF&E our as be growth. EBITDA life benefits presentation received take a our allowances the we These funded the unit in GAAP owner owner calculating it presents straight-line management and form end we a allowance As team into of of periods closer the landlord payments believe the benefits adjustments, rent internal account back measure the where allowance our to adjusted rent with substantial cash GAAP. as by actually accordance adding for factors are during These periods the the period lease can abatement we adjustments. rent of in from result live the when accounted we GAAP realized adjusted to CapEx funded approximation year landlord over

a adjustments expect benefit positive from We in XXXX. quarter first these the of

positive the we're quarters. our to several encouraged Turning saw over we trends XXXX by the last outlook, full-year

on leisure of its travel rebound impact the and and ADR Specifically, RevPars.

remains quarters expect to cautiously macro between However, compared uncertainties. our optimistic will to continue. that we COVID, revenue forecasting units bookable growth full-year out visibility and full-year on several in night, with by We're given XXX% increase continued trends to combined related live challenging favorable XXXX. And XXX% as

we're a revenue XXXX. of terms improvement In new EBITDA, number and cost in initiatives adjusted of implementing

will efforts magnitude uncertain on the to EBITDA sufficient XXXX of higher challenging So lower basis. full-year with XXXX therefore a XXXX forecast in a be we full-year part to on from EBITDA but Adjusted Is driven the basis pace of percentage the these dollar expect recovery. and That Adjusted of precision. revenue impact is losses by than said COVID

meaningfully We revenues unit cost expected mainly with units. live Landlords, XXXXX in and expect a GAAP higher to roughly revenue of versus both increases of is rent will property increase comprised basis. as to our which of directly line costs in dollar be growth, on level will cost related And

on benefit XXXX in to specifically, pre live will revenue to dollar our -opening to we generally leverage before albeit in percent units, -opening a revenue expenses, units, Francis as where are we costs a scale. open expect on questions. expect significant expected grow with in both increases new increase we basis. call expect opening operations line costs G&A I'll the in related lower pace slower include our be than mic which higher pre increase we other to economies at we a basis, from meaningfully More the back expected and operating which Finally, to operating of from meaningfully a now expenses, pass of benefit

Francis Davidson

Thank Sanjay. you,

our like the prepared our wanted single tirelessly properties. employees all my seamless thank every our across both We'd who stays ensure across also long-term day work concluding Sonder business for remarks, Before their to thank all I globe new public to historic who to as our company. us confidence trust a well to real estate partnered and support everywhere investors partners and our as in for have growth with as guests

positioned mission to innovating strongly amazing revolutionize we're but hospitality tech-enabled driving by inspire. experiences that through Our to is ambitious continue spaces guest

joining Sonder's have our value we shareholders to again Thank long-term the growth. forward in that, for this drive enter sustainable, of ability as answering your to our afternoon. you hospitality and we next of us future for we questions. look phase With our confidence every

Operator

Please As we reminder by Q&A stand a to compile roster. [Operator Instructions] while the

comes of Kelly line of question the from Oppenheimer. Jed first Our

line Your is open.

Jed Kelly

my earnings company first your Thanks becoming call. and great. your for Great, question Hey, on and congrats taking

well? you key you spoke noting So earlier that pandemic Can versus driven this largely level our RevPar through how margins was to the internal and and out initiatives. on implemented flows peers, speak growth the to occupancy by in property as RevPar the through initiatives call your your this performance

Francis Davidson

to market. profit outperform most couple done the is Thanks Jed. of lot Yes, RevPar mentioned, variable when over it your to potential years we've comes for business. important probably a And last the this as question, of absolutely. look to the much the at you so

the highlight want is I extended campaign. to stay our thing think first I

team. to methodology actually strong the landing part amazing the a launched is mid-March, a So and sales extended of pandemic, and really us page early able initiatives stay generate for our be in we In to on that something there's demand.

substantially there Given was demand XXXX short-term in less March that back the in market.

-pandemic initially to a of XX to but days we a really and capabilities that business our levels came afterwards us going to in demand didn't for to that the it pre much what of something could of properties. for our industry, are be thought, capability booster successful, was And a we is recovered allowed "Hey, fill the us So really realization difficulty that something important get that even plus back department. a occupancy stays but demand realize in time, beyond the very at fully generation moment goes this the source

to internships, So as are the or that an those of all we example, of are corporate capable housing to -- were prior what sources demand did relocations, have pandemic. doing

been to it's that standard for crucial that's piece, say So success. our first really

is piece second revenue The management.

the unit. technology that order be algorithmically to and our So the can maximize able yield we've available properties of to we in really generate built off impacted these price

we've trade-off a elasticity that bit revenue as how and in the tests can disproportionate by of stay. there's this of to understand subtlety to between pricing benefit this we've more a little rates, that rates, pricing on seeing price, differentially fully So run things other plans, such two, course management fully rate flexible, done is length comes non-refundable occupancy one get of refundable it and we when

[Indiscernible], So third us the of done there the great The a really piece corporate well. Sorry, occurred last years, we bear the series demand. ideas has be that quite of years travel innovation fruit see the is coming to mention make that the of that's that though about as lot couple I initiatives even could in that feel we've want

answer the at there's And invited auction change in like market systems. were incremental recovers. the looking launched add-on. to we've changes partners will So of and them Last ready to to that revenue, where uniquely rely the lot a an is corporate monetization on like more ourselves going travel thing folks workforce so be going all work There's program, is going want nimble as And forward speak. from be the really now and important to earlier, particularly changes more adapt office, Sanjay take of that sector to of tethered a supply, travel this mid-XXXX, to think the mentioned lot mention these corporate positioned our GDS advantage eyes and XXX in I we're and, a of people anywhere. to and all some if the to can post-pandemic, we isn't of

things early all service of quality to generate are enhancing the late first mid-state but while things that upgrades, and the we guest no require check-in So can like topline those experience. little revenue or expense cleanings, very day at monetizing the fruits checkouts, or that

For the to though, level your ties second of part to of question this down. property margins. profit hand the over into break and I'll it that Sanjay how kind

Sanjay Banker

for thanks the And Francis. question. Thanks,

part question So about PLP margins. for the second of how RevPar filters down to

ways As for And recovery Francis which pointed to driver market the rebound demonstrated cautiously in expected over is last the RevPar the long-term there RevPars our the Francis PLP outlined, market that out, us we've we given RevPar optimistic, potential several also to the many get obviously key full are within as XXXX. for we're But as outperform quarters. can margins. is travel biggest

occupancy is few drops which For has obviously costs. through it straight the through there's through mostly growth benefit And RevPar ADR. drop-through most to net there the marginal past PLP. come also direct quarters, growth of our But of

Given on new escalations. this future our as margin PLP minutes are rent margins. the straight as the us our ago impact on based our upfront well we evaluate so all mentioned leases evaluated reiterating can all of rent is a to abatements have annual impact, dynamic, their which basis worth just on their a are and based profitability benefits that impact. initiatives RevPar shown GAAP impact perspective, I few line that It's levers of potential also enhancing requires RevPar, of straight-line on RevPar what and on the not

our GAAP much cash for landlord back PLP add adjustment result, our and of As are cash a would rents a to lower accurate the payments. more reflection

Jed Kelly

November? then back how is wave? XQ And one, pipeline just we've talk the can RevPar then we gotten Got you it. And it how past back and your talk you can it, maybe XXXX to to Thanks. can outlook relative Omicron this tie how about for about property were about March in you thinking and maybe trending -- as

Francis Davidson

for follow-up. Thanks Yes, absolutely, Jed. the

So the QX explained being up mainly see a quarter-to-quarter, slow quarter we've one the and stays trend. hitting And February, seeing though really the so Right Omicron quarter-over-quarter platform of Omicron wave rapidly increased just in generally being booking down travel you rapidly our weaker And end as November, been mentioned our like in P&L that as but of where that Right. ADR secondly, patterns occur year-over-year, case start we surge the mentioned and down channels January the but is seasonal counts stronger us. meaningfully. that dynamics bookings, behavior, on the behavior by was to for on. just we and and decreased saw our effects March booking has

On the property on second the pipeline. question

So yes, portfolio, pipeline. our expansion managed our The we've of reason contracted the strong really we why saw grow units our XXXX. a total is to this by such meaningful in amount

pipeline. few in growth our the results things of a that so there's the And

supply then there's as the financial the across the the the go as Estate Sonder that have convince case the improvements a of and the show we can our business, set call course, and is make to Real like is then with handle Team. use XXXX really And that Real a The it to that straightforward us. to stronger, the deliver for ground, the improvements the is to our and more and that balance growing guests for, to sheet the property part another generating on is, Having growth working productive. the flywheel have asset. with have, owner out financial the we the our to more that the Team supply they we just highest what of more more are, boots turns side, easier best and of and studies into the ensuring these folks second for it larger on able lot is be and the more case performance experience we tour of effect for estate, us then to we the for work properties it more we'll street us in First that than so guest the of remain of properties lot easier adding stronger recovery assets, driver is Estate real we

optimism really comes these our so a of two lot capacity give it to And when to high-quality us things combined keep supply to adding our portfolio.

Jed Kelly

be more. guess how guided XXX% I then a back to for the Investor your And at for thinking saw you you we five-year guess, I it. or change Day growth revenue one change. XXXX. in should outlook Got XXX, mean, fall the Any I I about provided Any just it?

Sanjay Banker

question. Thank Jed, for that

terms better confident, outlook longer-term So that book this I'd we're I'd levers optimistic. year and beyond. market continued than the that -- to market we say pulling The add in outlook, our recovery our both the of and of do obviously growth years XXXX provided all signed, properties to going we're of XXXX yet in beyond provide excited us yet. and deep live properties about will not make as deliver the very outlook prospects, of pipeline future future for prospective year not XXXX that and and but course remain

Jed Kelly

you. Thank

Operator

Thank you.

of from Our question next Andrew Boon JMP Securities. comes

open. is line Your

Andrew Boone

Hi, taking go want XXXX the I revenue questions. good my to thanks to afternoon for guys. back And guide.

talk units pipeline? so much. just Thank Just bridge. just coming initiatives really to new because new between us there what and contracted of and just of changed a Is Omicron any bridge during help investors RevPar slipping now? is about units, terms guys revenue. with get You to then of the to weaker XXXX units, in conservatism? in Can helpful that and you you Is provided November update its unit online? that the just RevPar change November Or

Sanjay Banker

fact it is to Thanks expected the The we back will the and Omicron timing RevPar had of directionally plus impact of your expected QX recover change question, of forthcoming the the the for due Yes. The similar. is to on. to to majority take that bridge trajectory time that buildings be on Andrew. of delivery planned

So it factors. combination is those the two of

volume On revenue have labor the what plus that our very calendars those the and former, live, forecast. a issue. underscore year-on-year which Nonetheless, go of of those revenue chain one it's still help are with about properties I'd those target but will shortage all slowed due drive annual well-documented and is being expect to the still the to the proud schedule partly to live to teams we schedules growth, that and really that go a deliveries live go in we're which but but that evolves remarkable still led buildings We supply XXX% growth changes to have they we're timing deliver. building excited signed incredibly changes issues

Andrew Boone

ability And environment. But think with makes given those related. and to a sense. Sonder? we as That interest a then well rising macro that's developers me work try rental kind very within apartments, about question their of market How rate strong let impacting things as do different

Francis Davidson

what's across and property Yes. operating considered meaningfully are And understand Sonder. the in. And for asset economic value to here the also our net the Thanks income for developers is to choose with us how they us. new holds our is with benefit so deliver work calculation it's strong lower structures The level. for the of work specifically still of board operate much cost that whether the the a make worth that buildings really to hotel capacity proposition to at really right and model jumping important that independent owners building both really

the really for work And to extremely owner so this and in manual impressive revenue. with kind also that right? the outperform we've at attractive to an to there important makes understand as doesn't strong is market where market see back? technology has are think is come that lockstep, really as that of we've And growth, streamline, fact this that capacity, so I the which even our able are demand been It's the moving strong the total right? us, built, labor the In that for of and combination to so, compromise these we've markets of That RevPar, it comes right? capturing there you capable translated is, we've shown growth. And us rent question strong RevPar, we the portfolio managed is really

that months. a as Even dynamics those it's for you been play mentioned last the several

Andrew Boone

much so guys. Thanks

Operator

Sachs. question of from next Our comes Goldman Grambling Stephen

please. question, Your

Stephen Grambling

questions think growth impact in as rooms underwritten core on markets the about in the XXXX. and the the taking how mix the contracted RevPar the you for compared Thanks to does

Francis Davidson

for points the just we on your you right here. that to much on the the want touched so mix repeat make to maybe core. the in Thanks sure question ask I'll I question

Stephen Grambling

Yes.

or are to a As it follow-up, you existing markets headwind being as contracted or deals a and it those think for tailwind the the compare, about be And a related comparable contrast could what's these from similar signed. structure so the think about be that rooms, generally contracts. is RevPar in the are did core maybe how as we of the should RevPar

asked CapEx other versus [Indiscernible]. Specifically, or abatements history RevPar being

Sanjay Banker

highlight landing tailwind more moving counterparty mix. of thank A are closing are on more effects, better internally and getting become what call effective higher also, mix the sophisticated tailwind North is great mix Generally call speaking, and That better big markets our about as as strategy markets what and and Europe, also move first counterparty, vary, we terms those towards average our that, Meaning there increase mix a got market as it's in us a is increasingly couple to quarter-to-quarter, is it mixes markets really market Stephen, not And mix The one, also which capitalized the in portfolio. in which speaking. effects RevPars. it's while of market a Yeah. think No, you well as favor. we a as we're we so weighted in we call attractive market we to deals you American concerted towards we for and one generally the a RevPar market them, can we'll different makes of a mix as are question.

a driver of to they markets. RevPar towards unit. the than They be balanced tend other effect. we better And to the in mix like-for-like have while The versus hotels, lower also markets. RevPar market higher hotels. comparable is balancing tend The multi-family as multi-family

sense, drivers better. push. building it's getting And last then so that and the say And year that a I'd every is And better quality.

we're quality can higher which generate better RevPar. deals signing so And

our And say RevPar. of reasons, so be over three improving to a all tailwind mix for is should I'd time those

property the has studies itself quality. We're case earlier deals. partners question perspective proven part helping deal transaction -- us our seeing -- to of your The is ability second our track is mentioned get to record owner This show better more Francis as we're that's to the side and seeing us and period-to-period, deals, transparency, what so to better get create company, as but visibility, emphasize allows in quarter-to-quarter, the effect. confidence described may us flywheel Francis the more a tailwind allowed broad market different which things,

Stephen Grambling

And maybe one clarification. other

of impacting just On terms things or FF&E, issues rooms of that the delays also is that there in seeing units, other contracted you're the is because of getting that primarily that? are procurement new-builds or contracted or

Sanjay Banker

good renovation of is. a heavy a and there probably spectrum a distinctual stock can It's terms but that be newbuild issue. renovations this then spectrum, definitely over newbuilds, the a towards question. as assets the more Yes. renovations We And but less It's an obviously skews happens, the FF&E maybe a are -- And it take things we where light that supplied. difference less of more in point. keep of much are or as heavy

main that around be It's so than would materials building delay. construction And shouldn't be the more it and FF&E. much around

Stephen Grambling

Got it. you. Thank

Sanjay Banker

question. the for you Thank

Operator

over sir? to turn back would Francis At the to like for I closing this remarks, time, call Davidson

Francis Davidson

really to off on our to business so working to this huge I engagement, revolutionize you that's thanks just alongside the and appreciate for to-date, earnings the with want be our close Well, I to today call make be hospitality. you as a a team thank tuning a to much, public company. tirelessly success question. couldn't worked inaugural everyone in happier

and much everyone for taking all on our so for of for great. thanks employees called So who this in

Operator

call participating conference and may for now today's you disconnect. concludes you thank This

Sonder (SOND) 10 Mar 222021 Q4 Earnings call transcript