Update: Sonder Shares Double on Licensing Accord With Marriott, Liquidity Boost

01:42 PM EDT, 08/19/2024 (MT Newswires) -- (Updates with stock moves in the headline and first two paragraphs and adds liquidity deals.)

Sonder Holdings (SOND) shares doubled in recent Monday trading after the company secured a long-term licensing agreement with Marriott International (MAR) and boosted its balanced sheet.

Marriott shares rose 1.9%.

Sonder, which operates small boutique hotels and short-term rentals, agreed to integrate 9,000 units into Marriott's portfolio this year and 1,500 afterward, the companies said.

Under the deal, Marriott will receive royalty fees based on Sonder's room revenues.

Sonder's mostly urban, apartment-style accommodations in North America, Europe, and the Middle East are to be included in Marriott's reservation system under the brand "Sonder by Marriott Bonvoy."

Sonder also said it raised $146 million in additional funds to support its long-term growth and integration plans in the deal with Marriott.

The extra liquidity includes a commitment from a consortium of investors to buy $43 million of a newly designated series of convertible preferred equity of Sonder, along with $83 million in additional financing from existing noteholders. Sonders said it expects to raise $20 million from other unspecified sources.

Price: 5.27, Change: +2.65, Percent Change: +101.15