Short-term accommodation provider Sonder Holdings in the second quarter continued to rapidly grow its corporate travel offering, increasing active accounts to 400 from 250 in the first quarter, the company announced late Wednesday.
“While we are still in the early stages of our corporate travel offering, we have continued to gain traction every quarter since its launch and are extremely excited about this as an opportunity to grow revenue” per available room , Sonder co founder and CEO Francis Davidson said during a conference call Wednesday with analysts.
The company’s push for corporate travel is one of a number of measures it is taking to boost frequency and RevPAR as it pushes ahead with a restructuring plan and development strategy aimed at boosting its cash flow.
Sonder’s occupancy rate for the second quarter was 82 percent, up from 68 percent a year ago, and its RevPAR rose 67 percent year-over-year to $167. Sonder’s average daily rate for the second quarter was $203, up from $147 in the second quarter of 2021.
Sonder executives suggested that “robust” second-quarter demand did not rule out further strengthening. Davidson said he expected additional growth in corporate demand in 2023, and Sonder president and CFO Sanjay Banker said the overall recovery should continue.
“We are nowhere near fully recovered to travel,” Banker said. “We believe that looking into 2023, there is significant room in terms of market recovery even compared to the second quarter of 2022.”
Sonder Q2 performance
Sonder’s second-quarter revenue rose 157 percent year over year to $121.3 million. The company’s net loss for the second quarter was $43.8 million, compared to a net loss of $73.9 million a year ago.
Sonder at the end of June had 8,400 direct units in its portfolio, down from 7,700 at the end of the first quarter and from 5,500 at the end of the second quarter of 2021. Including contracted units, its total portfolio fell to 18,700 units from 19,300 at the end of the first quarter. Part of the company’s revised growth strategy, announced in June, was to limit growth to signings that include what it calls “equity-light deals.” Sonder said in a letter to shareholders that it had “exited several contracted units that did not meet the objectives of our Positive Cash Flow Plan.”
Sonder Q1 performance