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Sonder is now operating hotels. Do third-party managers have anything to fear?

Sonder, the tech-enabled short-term rental company, has launched its first-ever hotel collection — Powered by Sonder. The collection reportedly consists of 23 properties operated by Sonder in 13 markets.

What sets the collection apart from other hotels and multi-unit apartments is all these properties are boutique hotel-oriented and feature a distinctive design and amenities, like F&B options. All hotels have their own unique, which is different from Sonder’s core aesthetic. All of these properties, however, will offer the same guest experience, including mobile check-in and service.

All these properties are hotels, not just apartment-style properties, the report mentioned. While Sonder plans to add more hotel collections going forward, the company does not plan on adding multiple collections or brands, the report added.

Among these 23 properties is Atala in Paris. With art-deco-inspired exteriors and dark marble flooring in the interiors, the hotel is close to the Arc de Triomphe and many more main tourist attractions. Powered by Sonder also includes the Yelo Jean Medecin in Nice. The hotel offers tech-enabled rooms with a connected tablet.

Beverly Terrace in Beverly Hills, Calif.

In the U.S., some properties in the Powered by Sonder collection include Chambers in New York City and the 3-star Beverly Terrace in Beverly Hills, Calif.

According to reports, all these properties can be booked from leading booking platforms.

Besides launching its own collection of hotels, Sonder announced it has partnered with Kalimian Equities to manage and operate a recently-built hotel in New York, The Orchard. Located on the corner of Orchard and Allen Streets, the new 98-key hotel includes a rooftop terrace, fitness center, dining venues and a guest lounge.

Founded in Montreal, Sonder has been expanding its presence in the U.S. and internationally. Earlier this month, Sonder grew its presence in Europe with the addition of five new properties in France, Italy and Spain. These properties joined the group’s existing 54-hotel portfolio in the EMEA region. In June, Sonder expanded its presence in Florida and launched four new properties across the state, bringing its total footprint to 930 live units across hotel, resort and multi-unit serviced apartment properties. These four properties more than doubled Sonder’s live units in Florida, joining the existing eight properties.

Currently, Sonder operates 18,200 live and contracted units in over 40 markets across 10 countries. In Q1 2023, Sonder posted 50% YOY revenue growth.

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