Sonder Becomes Travel’s Newest Billion-Dollar Brand After Raising $225 Million For Its Airbnb-Style Hospitality Business

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Sonder is travel’s newest billion-dollar brand after raising $225 million for its Airbnb-style hospitality business by bizcarson

—were doing $1 million in revenue. Five years later, Davidson says he expects his company to generate $200 million in revenue in 2019 and finish the year on a $400 million revenue run rate.

"We're paying back our investments in new properties now in 12 months," down from around 30 months in early 2018, Davidson says. Investors took that as a good sign.Dana Lerner had booked a Sonder for her daughter and friends to stay in during a trip to Rome through a third-party site called the PlumGuide.

Her daughter's group left the rental to check into a hotel, but Lerner says Sonder made it hard to get help. Ultimately, her original booking site offered her a refund. Beyond quality challenges, Sonder will also have to carefully navigate zoning laws to avoid the Airbnb-style backlash that comes with renting out"apartments." In New York City, for example, it's gotten around strict short-term rental laws by taking over properties zoned for hotel use and. In San Francisco, it only operates monthly rentals to comply with the city's regulations.

 

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