Skift Take
Sonder's hotel-style serviced apartments operate in that sweet spot between Airbnb homeshares and full-on hotels. There are, of course, plenty of rivals doing a similar thing, but this funding round will enable Sonder to expand its business and give it a competitive edge.
Boutique hotel-style accommodations business Sonder has raised $225 million as part of its latest funding round.
The total includes $210 million in Series D funding led by Valor Equity, Westcap, and Nicholas Pritzker, through Tao Capital Partners. An additional $15 million will come from developers who are partnering with Sonder on new deals in cities across the world.
“What impressed us was Sonder’s outstanding leadership team and its marriage of technology and design, which we see as the future of hospitality," said Pritzker, who was formerly chairman of the board and CEO of Hyatt Development Corporation.
This latest round will bring the total raised to $360 million. Sonder plans to use the funds to open a second headquarters in Canada and hire several hundred engineers, designers, and finance and operations experts through 2020.
Sonder, which has 8,500 spaces in 26 cities around the world, is expected to generate $400 million in revenue during 2019 — fo
