Sonder, one of the many new technology-enabled, apartment-style accommodations providers, has leased from Merchants Hospitality all 100 rooms of the Z NYC Hotel, located in Long Island City in Queens, the New York Post reported. Since its founding in 2014, Sonder has raised a total of nearly $400 million, with its latest round bringing in $225 million last July, according to the company.
With the new lease, Sonder now has more than 1,000 signed units in New York City, mostly in Manhattan, and will have 971 live by this summer, a company spokesperson told BTN. This is the company's first property in Queens. Sonder plans to make changes to the 100 rooms but would not elaborate further, other than that the units should be available sometime in spring 2020.
About one-third of Sonder guests are corporate travelers, according to the spokesperson, and the company recently hired a new head of business travel, who the spokesperson didn't identify and who has not yet started work. "We're actively seeking to attract more corporate clients through a variety of channels," said the spokesperson. Sonder units currently can be booked directly through the company's website or through online travel agencies. The average cost for a Sonder unit in New York City is $129 per night across the portfolio, according to the company.
[Clarification, Feb. 14: A previous version of this report indicated Sonder has raised a total of $360 million; the company subsequently clarified that figure.]