This week we have seen a few interesting short term rental movements and newsworthy items. A couple of well known companies who have decent portfolios and well funded are now are struggling and being forced to move away from their original game plans. We also have a couple of relatively newco's on the market, both at the top end of where real estate meets rental world, curated and managed by very proficient individuals.
1. Struggling Sonder Receives Delisting Notice from Nasdaq, Faces Challenge to Regain Compliance
As a result of its failure to meet Nasdaq's minimum bid price listing rule, Sonder, a property management company that went public through a SPAC merger, has been delisted. If the company does not regain compliance with the minimum bid price requirement within 180 days, it will be forced to transfer to the Nasdaq Capital Market. In addition to its struggles with profitability and workforce cuts, Sonder has failed to provide guidance to shareholders beyond the first quarter of 2023. Despite trying to achieve positive free cash flow in 2023, the company still faces challenges due to inflation, interest rate increases, and a potentially impending recession. Check the Shareprice here alog with Vacasa and Inspirator which appear to be in similar situations
2. Next Capital to Take Australian Short-Term Rental Operator Alloggio Private in $40M Deal. Is Private Equity the Savior for Capital-Starved Companies
It is expected that Next Capital will take Australia's Alloggio short-term rental company private in a deal worth around $40 million if shareholders approve it in July. With its public offering last year, the company raised AUD16.5m ($11m) and expanded its property management and mid-market hotel divisions. According to experts, the move shows how private equity firms can help out capital-starved companies. According to some analysts, short-term rental companies went public too soon given the costs involved in scaling up.
3. Ancestry meets unique and luxury with history! The Storied Collection
Storied is a soft brand collection exclusively for historic castles, estates, and chateaux hotels across United Kingdom & Ireland. Becoming an accommodation member of Storied provides quintessential historic accommodations for a globally recognized soft brand, enhancing marketing power, providing education and support, and allowing its members to remain independent. Read more here
4. How to market high end properties successfully? Sirreti is the answer!
One of the biggest challenges to any top-end property portfolio is targeting that rarified atmosphere of "well-heeled" or "High Net Worth". Few people can afford the prices that the world's top accommodation costs, and how to reach them is challenging without the contacts, expertise, and knowledge. Read more about Siretti and its service here.
Have a great weekend.