Sonder appoints independent board chair as challenges continue

Sonder Holdings Inc., a hospitality company that blends elements of hotels and short-term rentals, announced the appointment of Janice Sears as independent board chair, effective immediately, as reported by Skift. Sears, who has served on Sonder's board since 2016, replaces cofounder and CEO Francis Davidson in the role. Davidson will continue to serve as CEO and remain a member of the board.

Sears brings a wealth of experience to her new position. In addition to her previous role at Banc of America Securities, she has held senior positions at real estate investment firms, including CBRE Global Investors and LaSalle Investment Management.

Sonder has faced significant headwinds since going public via a SPAC merger in January 2022. The company's valuation has plummeted from $1.9 billion pre-IPO to a current market cap of approximately $39.3 million. This decline is attributed to a combination of factors, including increasing competition in the short-term rental market, rising interest rates, and concerns about the company's profitability. Sonder has also received a notice from Nasdaq warning of potential delisting due to delays in filing its quarterly reports. Sonder has stated that these delays were caused by the need to restate previous financial statements due to errors related to the accounting for certain lease agreements and warrant liabilities.

In a move to expand its reach and diversify its offerings, Sonder entered into a 20-year licensing agreement with Marriott International in 2022. This strategic partnership, expected to be fully operational in 2025, will allow Sonder to distribute its properties through Marriott's channels, giving Marriott Bonvoy loyalty members access to Sonder's unique blend of hotel and short-term rental accommodations.

To further strengthen its leadership team, Sonder also appointed Erin Wallace to its board of directors. Wallace brings over two decades of experience in the hospitality industry, having held executive positions at Disney Parks, Experiences and Products, and Great Wolf Resorts. Her expertise in operations and customer experience aligns with Sonder's ongoing efforts to optimize its business model and enhance guest satisfaction.