Company registration number 12331815 (England and Wales)
SONDER HOSPITALITY UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SONDER HOSPITALITY UK LTD
COMPANY INFORMATION
Directors
K Potter
(Appointed 9 January 2024)
A Bowen
(Appointed 12 April 2024)
Secretary
Intertrust (UK) Limited
Company number
12331815
Registered office
1 Bartholomew Lane
London
United Kingdom
EC2N 2AX
Auditor
PKF Littlejohn LLP
15 Westferry Circus
London
E14 4HD
Bankers
Barclays Bank Plc
1 Churchill Place
London
E14 5 HP
SONDER HOSPITALITY UK LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 27
SONDER HOSPITALITY UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Principal activities

The company was incorporated on 25 November 2019 by Sonder Europe Ltd (together with the other subsidiaries of Sonder Holdings Inc. “the Group”, which is headquartered in San Francisco, California). The Group provides short and long-term accommodation rentals in various cities across North America, Europe, and the Middle East. The Company’s shareholding was transferred to Sonder International Holdings Limited on 18 June 2020.

 

As part of a reorganisation as at the 1st January 2021, the Company received the trade and assets of the real estate operations from Sonder Europe, a company under common control. This allowed Sonder Europe to focus on developing real-estate technology and brand for Sonder Holdings’ EMEA operations.

The services offered by the Group bring together the authenticity of peer-to-peer home rental, plus the consistency of a traditional hotel. The Group offers modern and furnished accommodations in central, desirable neighbourhoods in each of its operating cities.

Review of the business

The profit for the year has been included in these Accounts for £147,206 (2021: profit of £10,017).

 

Sonder Hospitality UK is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. The Company provides a variety of accommodation options — from spacious rooms to fully-equipped suites and apartments. Revenues grew from £20,016,504 in 2021 to £28,450,774 in 2022, a 42% increase.

Principal risks and uncertainties

Business risk

The Group’s business is particularly sensitive to trends in the travel, hospitality, and real estate markets, and trends in the general economy, which are unpredictable. Travel, including demand for accommodations, is highly dependent on discretionary spending levels. As a result, hospitality sales tend to decline during general economic downturns and recessions, and times of political or economic uncertainty, as consumers engage in less discretionary spending, are concerned about unemployment or inflation, have reduced access to credit or experience other concerns or effects that reduce their ability or willingness to travel. Leisure travel, which accounted for a substantial majority of Sonder’s pre-COVID-19 pandemic traveller demographic, is dependent on discretionary consumer spending levels. Downturns in worldwide or regional economic conditions, such as the current downturn resulting from the COVID-19 pandemic, have led to a general decrease in leisure travel and travel spending, and similar downturns in the future may materially adversely impact demand for the Group’s accommodations. Such a shift in consumer behaviour could materially and adversely affect the Group’s business, results of operations, and financial condition.

Financial risk management objectives and policies

The Company’s objective in managing risk is the creation and protection of shareholder value. Risk is inherent in the Company’s activities, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The process of risk management is critical to the Company’s continuing success.

The Board of Directors supervises and is ultimately responsible for the overall risk management of the Company. The Board’s considerations of key financial risks impacting the business is set out below.

 

 

 

 

SONDER HOSPITALITY UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Liquidity risk management

Liquidity risk is the potential that, although remaining solvent, the Company does not have sufficient liquid financial resources to enable it to meet its obligations as they fall due, or can secure them only at excessive cost.

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Company is dependent on its parent, Sonder Holdings, which provides ongoing support both directly, in the form of making available cash funding, and indirectly through settling certain liabilities directly on behalf of the Company. The company has received confirmation from Sonder Holdings that it will ensure that the Company has access to sufficient resources to enable it to settle its liabilities as they fall due for a period of at least one year from the date of approval of these financial statements.

Credit risk management

The Company’s credit risk is primarily attributable to its receivables and cash balances. The amounts presented in the Balance Sheets are presented net of allowances for doubtful receivables where required. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flow; however, no material allowance for impairment was required at 31 December 2022.

In the case of trade receivables, the Company manages credit risk through requiring payment for its services either in advance or through credit cards provided by reputable international providers of high credit standing. In the case of intercompany trade receivables, the Directors have assessed the credit worthiness of its affiliates, and management expects all Group companies to be fully funded and meeting their financial obligations. In the case of other counterparties, the Company manages its credit risk through credit checks of those counterparties. In the case of its cash balances, the Company believes that its credit risk is limited because it uses banks with high credit ratings as assigned by international credit rating agencies.

The Company does not have additional exposure to credit risk beyond what is recognised on its balance sheet.

Other risk management

The Company undertakes a limited number of transactions denominated in foreign currencies; consequently, the impact of exposure to exchange rate fluctuations is immaterial. The Company is exposed to interest rate risk because the Company’s cash balances earn interest at variable interest rates, but the impact of interest rate changes is immaterial. The Company is exposed to interest rate risk because the Company’s cash balances earn interest at variable interest rates, but the impact of interest rate changes is immaterial. See going concern disclosures for further information.

Future Developments

Going forward, the Company will handle the real estate operations of Sonder in the United Kingdom. The company is expected to operate at a near breakeven level for the foreseeable future due to accommodation and market support agreements with other entities of the Group.

 

Section 172 (1) statement

Sonder Hospitality UK Ltd is a UK based subsidiary of Sonder Group BV (the "Group"). The company is a special purpose company created to hold the Group's investments in Europe and the Middle East. In identifying key stakeholders and ensuring that their needs are considered in decision-making, the Company follows the policies, procedures and governance arrangements of the Group.

In performing their duties under section 172, the directors of the Company have had regard

to the matters set out in section 172(1) as follows:

 

Shareholder

The directors of the Company are officers of the Group and ensure that any long-term decisions are in line with the Group's long-term goals as set in the Group's plan.

SONDER HOSPITALITY UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Customers, suppliers and business contacts

The Company's suppliers are primarily the Company's landlords, with which it is in ongoing contact to understand their requirements and collaborate effectively.

 

Tax authorities and regulators

The directors understand the importance of compliance and seeks to ensure the Company develops and maintains transparent, collaborative and professional relationships with tax authorities and regulators. The Company expects the highest standards of integrity from its officers and service providers and seeks to comply with relevant tax legislation and regulations.

On behalf of the board

..............................
..............................
K Potter
A Bowen
Director
Director
Date: .............................................
Date: .............................................
SONDER HOSPITALITY UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Gardener
(Resigned 20 March 2024)
P Rothenberg
(Resigned 9 January 2024)
D Watt
(Resigned 12 April 2024)
K Potter
(Appointed 9 January 2024)
H Mehta
(Resigned 4 February 2022)
A Bowen
(Appointed 12 April 2024)
Auditor

The auditor, PKF Littlejohn LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

The Company has received confirmation of support from its ultimate parent undertaking, Sonder Holdings Inc, that it will ensure the Company has access to sufficient resources to enable it to settle its liabilities as they fall due for a period of at least one year from the date of approval of these financial statements. Sonder Holdings Inc has acknowledged that there may be a need to secure additional debt or equity financing in order to support the Company.

Sonder Holdings Inc has demonstrated the ability to successfully fundraise and, should the need arise, they are confident the funds can be raised as needed. However, the timing and success of those endeavors are inherently uncertain, giving rise to the material uncertainty in respect of going concern.

The directors conclude that there are material uncertainties about the ability of the Company to continue as a going concern after consideration of mitigating actions. Material uncertainties arise from the fact that while Sonder Holdings Inc has announced significant cash flow streams to support the group, those funds have not been received in their entirety.

The directors continue to adopt the going concern basis in preparing the financial statements. Further details regarding the going concern basis can be found in Note 1.2 to the financial statements.

On behalf of the board
..............................
..............................
K Potter
A Bowen
Director
Director
Date: .................................
2024-09-05
Date: .................................
2024-09-05
SONDER HOSPITALITY UK LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SONDER HOSPITALITY UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SONDER HOSPITALITY UK LTD
- 6 -
Opinion

We have audited the financial statements of Sonder Hospitality UK Ltd (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which indicates that the company’s activities and finances are solely dependent on its parent company, Sonder Holdings Inc. Although the company has received a letter of support from Sonder Holdings Inc, Sonder Holdings Inc has acknowledged that they could need to secure additional debt or equity financing in order to support the company. Whilst Sonder Holdings Inc plans to secure the additional financing required, the plans are not entirely within Sonder Holdings Inc’s control and as such, cannot be assessed as being certain.

 

As stated in note 1.2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report.

 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

SONDER HOSPITALITY UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SONDER HOSPITALITY UK LTD
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

SONDER HOSPITALITY UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SONDER HOSPITALITY UK LTD
- 8 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Timothy Harris (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Date: .........................
2024-09-05
Chartered Accountants
Statutory Auditor
15 Westferry Circus
London
E14 4HD
SONDER HOSPITALITY UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
as restated
Notes
£
£
Revenue
4
28,450,774
20,016,504
Staff costs
6
(3,060,078)
(2,138,660)
Depreciation
5
(9,328,864)
(9,476,429)
Other operating expenses
(11,558,527)
(5,705,210)
Operating profit
5
4,503,305
2,696,205
Finance costs
7
(4,356,099)
(2,686,188)
Profit before taxation
147,206
10,017
Income tax expense
8
-
-
Profit and total comprehensive income for the year
147,206
10,017
SONDER HOSPITALITY UK LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
as restated
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
37,621,853
31,005,648
Trade and other receivables falling due after more than one year
11
830,454
152,384
38,452,307
31,158,032
Current assets
Trade and other receivables
11
8,349,609
4,707,977
Cash and cash equivalents
2,929,917
1,986,199
11,279,526
6,694,176
Current liabilities
Trade and other payables
12
5,885,236
4,486,186
Taxation and social security
51,590
-
Lease liabilities
13
8,535,604
5,420,684
14,472,430
9,906,870
Net current liabilities
(3,192,904)
(3,212,694)
Total assets less current liabilities
35,259,403
27,945,338
Non-current liabilities
Lease liabilities
13
34,994,956
27,911,126
(34,994,956)
(27,911,126)
Net assets
264,447
34,212
Equity
Called up share capital
15
1
1
Other reserves
16
107,223
24,194
Retained earnings
157,223
10,017
Total equity
264,447
34,212
The financial statements were approved by the board of directors and authorised for issue on
.........................
2024-09-05
and are signed on its behalf by:
..............................
2024-09-05
..............................
K Potter
A Bowen
Director
Director
Company registration number 12331815
SONDER HOSPITALITY UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Other reserves
Retained earnings (restated)
Total
£
£
£
£
Balance at 1 January 2021
1
-
-
0
1
Year ended 31 December 2021:
Profit and total comprehensive income for the year (restated)
-
-
10,017
10,017
Equity-settled share-based payment transaction
-
24,194
-
0
24,194
Balance at 31 December 2021 (restated) See note 20
1
24,194
10,017
34,212
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
147,206
147,206
Equity-settled share-based payment transaction
-
83,029
-
0
83,029
Balance at 31 December 2022
1
107,223
157,223
264,447
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information

Sonder Hospitality UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Bartholomew Lane, London, United Kingdom, EC2N 2AX. The company's principal activities and nature of its operations are disclosed in the directors' report.

 

The Company is a wholly-owned subsidiary undertaking of Sonder International Holdings Ltd, a company incorporated in the United Kingdom and is an indirect wholly-owned subsidiary of Sonder Holdings Inc. (the “Parent company” or “Sonder Holdings”).

The Parent company is a corporation incorporated in Delaware, USA, with its registered address, c/o Corporation Service Company 251 Little Falls Drive, Wilmington, Delaware 19808. The address of the Parent company is 447 Sutter St. Suite 405 #542, San Francisco, California 94108, USA.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, except for the revaluation of . The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts of Sonder Holdings Inc. The group accounts of Sonder Holdings Inc are available to the public and can be obtained as set out in note 19.

 

These financial statements are separate financial statements. The Company is exempt from the preparation and delivery of consolidated financial statements, because it is included in the Group financial statements of Sonder Holdings Inc, which are available to the public.

The financial statements have been prepared under the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

 

SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

The Company has received confirmation of support from its ultimate parent undertaking, Sonder Holdings Inc, that it will ensure the Company has access to sufficient resources to enable it to settle its liabilities as they fall due for a period of at least one year from the date of approval of these financial statements. Sonder Holdings Inc has acknowledged that there may be a need to secure additional debt or equity financing in order to support the Company.true

Sonder Holdings Inc has demonstrated the ability to successfully fundraise and, should the need arise, they are confident the funds can be raised as needed. However, the timing and success of those endeavors are inherently uncertain, giving rise to the material uncertainty in respect of going concern.

Management concludes that there are material uncertainties about the ability of the Company to continue as a going concern after consideration of mitigating actions. Material uncertainties arise from the fact that while Sonder Holdings Inc has announced significant cash flow streams to support the group, those funds have not been received in their entirety.

1.3
Revenue

Revenue is recognised when the performance obligations inherent in the contract are met, regardless of when the payment is received. Revenue is recognised in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring promised goods or services.

The Company has concluded that it is the principal in all of its contractual revenue arrangements since it controls the promised service before that service is transferred to a customer.

The Company has performance obligations to provide accommodations and other ancillary services to guests. As compensation for goods and services, the Company is typically entitled to a fixed nightly fee for an agreed upon period and additional fees for any ancillary services purchased. Delivery of the goods and services typically begins on the date of check-in. The Company generally satisfies performance obligations over time, and it recognises the revenue from accommodations and other ancillary guest services on a daily basis, as the spaces are occupied and the services are rendered. Revenue is recognized at Group level under Sonder Hospitality USA which then reallocates the revenue on a monthly basis throughout its operating entities, which include the Company. Where a reservation is cancelled during a period where no refund is payable in line with the Company’s cancellation policy, revenue is recognised at the date of cancellation.

The Company recognises the incremental cost of obtaining a contract as an expense when incurred, where the amortisation period would have been one year or less. The costs have been recorded within the other operating expenses in the statements of comprehensive results.

The company recognises revenue from the following major sources:

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
3 years
Computers
3 years
Right-of-use Assets
Lease term
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -

An item of property, plant, and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is included in the statement of comprehensive results.

1.5
Impairment of tangible assets

At the end of the reporting period, the Company reviews the carrying amounts of its property, plant and equipment, and Right of Use Assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use. An impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

1.6
Leases

At inception of a contract, the Company assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether all of the three criteria below are met:

The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for:

For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -

Lease payments included in the measurement of the lease liability comprise:

The lease liability is presented as a separate line in the balance sheet.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-use asset. The depreciation starts at the commencement date of the lease.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.8
Financial assets

All financial assets are recognised and unrecognised on the trade date when the purchase or sale of a financial asset is under a contract that requires delivery of the financial asset within the timeframe established by the market. Financial assets are initially measured at fair value plus transaction costs.

Loans and receivables

Loans, and other receivables that have fixed or determinable payments that are not quoted in an active market, are classified as loans and receivables.

Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. When calculating the effective interest rate, the company estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. Financial assets with maturities less than one year after the balance sheet date are included in current assets; financial assets with maturities greater than one year are classified as non-current assets.

Cash and Cash equivalents

Cash and cash equivalents are comprised of cash on hand and other short-term highly liquid investments with an original maturity of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been adversely affected.

Derecognition of financial assets

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

Expected credit losses

The Company measures expected credit losses based on relevant information about past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount.

1.9
Financial liabilities

Debt instruments are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangement.

Financial liabilities

The Company classifies non-derivative financial liabilities in the ‘other financial liabilities’ category.

Other financial liabilities

Other financial liabilities are initially measured at fair value, net of transaction costs, and subsequently at amortised cost.

Derecognition of financial liabilities

The Company derecognises financial liabilities only when the Company’s obligations are discharged, cancelled or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

Share-based payment transactions

Share-based payment arrangements in which the Company receives goods or services as consideration for equity instruments of Sonder Holdings are accounted for as equity-settled share- based payment transactions, regardless of how the equity instruments are obtained by the Company.

Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non market-based vesting conditions.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest. At each balance sheet date, the Company revises its estimate of the number of equity instruments expected to vest as a result of the effect of non market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in the income statement such that the cumulative expense reflects the revised estimate, with the corresponding adjustment to equity reserves.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
1.14

Impairment

At the end of the reporting period, the Company reviews the carrying amounts of its property, plant and equipment, and Right of Use Assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use. An impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

1.15

Foreign currencies

The financial statements of the Company are presented in the currency of the primary economic environment in which it operates, or its functional currency, which is British Pounds Sterling.

Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. Translation differences are recorded in the statements of comprehensive results.

1.16

Nature of the Company’s operations

As part of a reorganisation as at the 1st January 2021, the Company received the trade and assets of the real estate operations from Sonder Europe, a company under common control. This allowed Sonder Europe to focus on developing real-estate technology and brand for Sonder Holdings’ EMEA operations. As of that date, Sonder Europe Ltd transferred its property rental business to the Company, and with that the entirety of its leases and operating assets at book value as of the transfer date.

Sonder Hospitality UK Ltd is set up to help the Group's expansion plan in the United Kingdom. From 1 January 2021 it has operated the Group's hospitality business for the local market which brings together the authenticity of home rental plus the dependable elevated services of a hotel. The company provided short and long-term rentals and offered modern and furnished accommodations in central, desirable neighbourhoods in each of its operating cities.

2
Adoption of new and revised standards and changes in accounting policies

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:

IAS 16 (amendments) Property, plant and equipment
Effective January 2022
IAS 8 (amendments) Accounting Policies, Change in Accounting Estimates and Errors
Effective January 2022
IAS 37 (amendments) Provisions, contingent liabilities and contingent assets
Effective January 2022
IFRS16 (amendments) COVID-19 related rent concessions
Effective January 2022
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
2
Adoption of new and revised standards and changes in accounting policies
(Continued)
- 19 -
Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU):

IAS 1 (Amendments) Disclosure of Accounting Policies
Effective January 2023
IAS 1 (Amendments) Definition of Accounting Estimates
Effective January 2023
IAS 12 (Amendments) Deferred tax related to assets and libilities
Effective January 2023
IFRS 17 and 9 (Amendments) Comparative imformation
Effective January 2023
IAS 1 (Amendments) Classification of liabilties as current or non-current
Effective January 2023

All of the amendments listed above did not have any impact on the amounts recognised in current period and are not expected to significantly affect future periods.

3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
Critical accounting judgement –IFRS 16 Leases

Key judgements made in calculating the initial impact of recognising the lease and this include determining the lease term where extension or termination options exist. In such instances, the facts and circumstances that may create an economic incentive to exercise an extension option, or not exercise a termination option, have been considered to determine the lease term. Judgement is also required in determining the discount rate, which is based on the incremental borrowing rate.

SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
4
Revenue
2022
2021
£
£
Revenue analysed by class of business
Accommodation Fee
17,374,686
9,636,442
Market Support Fee
11,076,088
10,380,062
28,450,774
20,016,504
2022
2021
£
£
Revenue analysed by geographical market
United Kingdom
28,450,774
20,016,504

Revenues are derived from the Company’s market support service for the group expansion plan in the United Kingdom as well as inter-group accommodation services based on revenue from accommodations and other ancillary guest services received by the parent company, as the spaces are occupied and the services are rendered.

5
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
26,542
1,193
Fees payable to the company's auditor for the audit of the company's financial statements
96,000
34,000
Depreciation
9,328,864
9,476,429
Loss on disposal of property, plant and equipment
39,837
3,418
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Operations
110
58
General and administration
-
1
Total
110
59
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
2,788,535
2,056,928
Social security costs
238,721
72,170
Pension costs
32,822
9,562
3,060,078
2,138,660

Wages and salaries included share-based payments £83,029 (2021:£24,194) for the year ended 31 December 2022.

The Company participates in a share option scheme for all employees. Options are exercisable on the shares of the parent Company at a price equal to the estimated fair value of the parent Company’s shares on the date of grant. The vesting period is four years, and options are forfeited if the employee leaves the Company before the options vest.

The Company recognises only the portion of the option award granted that is ultimately expected to vest as compensation expense and elects to recognize gross share-based compensation expense with actual forfeitures as they occur. The fair value of the Company’s stock options is estimated using the Black-Scholes option-pricing model, which uses the fair value of the ultimate parent company’s common stock and requires the input of the following subjective assumptions:

Expected term. The expected term for options granted to employees is based on the historical pattern of option exercise behaviour and the period of time they are expected to be outstanding.

Expected volatility. The expected volatility is based on the average volatility of similar public entities within the parent company’s peer group as the parent company’s common stock has not been trading publicly for a long enough period to rely on its own expected volatility.

Expected dividends. The dividend assumption is based on the parent company’s historical experience. To date, the parent company has not paid any dividends on its common stock.

Risk-free interest rate. The risk-free interest rate used in the valuation is the implied yield currently available on the United States Treasury zero-coupon issues, with a remaining term equal to the expected life term of the Company’s options.

The following table summarises the key assumptions used to determine the fair value of the Company’s stock options granted to employees:

 

Year ended

31 December 2022

Year ended

31 December 2021

 

 

 

 

Expected term (in years)

4.09 - 6.25

3.99 - 4.02

Expected volatility

50.0% - 55.4%

62.7% - 64.2%

Dividend yield

  • %

  • %

Risk-free interest rate

1.79% - 4.34%

0.40% - 1.00%

Weighted-average grant date fair value per share

£14.43 - £35.33

£3.37 - £4.89

 

The weighted average share price at the date of exercise for share options exercised during the prior period was £14.69. The options outstanding at 31 December 2022 had exercise prices ranging from £11.11 to £145.79, and a weighted average remaining contractual life of 8 years.

SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
7
Finance costs
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
4,356,099
2,686,188
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
-
-
0
-
0
Deferred tax
Origination and reversal of temporary differences
-
0
-
0
-
0
-
0

The charge for the year can be reconciled to the profit per the income statement as follows:

2022
2021
£
£
Profit before taxation
147,206
10,017
Expected tax charge based on a corporation tax rate of 19.00% (2021: 19.00%)
27,969
1,903
Change in unrecognised deferred tax assets
(27,969)
(1,903)
Taxation charge for the year
-
-

The UK Government announced from April 2023 the rate of Corporation Tax will increase to 25% on profits which exceed £250,000. As the company made a profit under £250,000 in the year a rate of 19% will be applied.

9
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2022
2021
£
£
In respect of:
Property, plant and equipment
189,691
-
0
Recognised in:
Other operating expenses
189,691
-
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
10
Property, plant and equipment
Fixtures and fittings
Computers
Right-of-use Assets
Total
£
£
£
£
Cost
At 1 January 2022 (Restated)
1,379,521
296,927
47,293,004
48,969,452
Additions
124,812
156,981
15,536,976
15,818,769
Disposals
(76,983)
-
0
-
0
(76,983)
Foreign currency adjustments
112,165
1,332
-
0
113,497
At 31 December 2022
1,539,515
455,240
62,829,980
64,824,735
Accumulated depreciation and impairment
At 1 January 2022 (Restated)
812,027
99,892
17,051,885
17,963,804
Charge for the year
400,672
119,391
8,696,762
9,216,825
Impairment loss (profit or loss)
6,713
-
0
-
0
6,713
Eliminated on disposal
(37,146)
-
0
-
0
(37,146)
Eliminated on revaluation
52,247
-
0
-
0
52,247
Foreign currency adjustments
-
0
439
-
0
439
At 31 December 2022
1,234,513
219,722
25,748,647
27,202,882
Carrying amount analysed between owned assets and right-of-use assets
At 31 December 2022
Owned assets
305,002
235,518
-
540,520
Right-of-use assets
-
-
37,081,333
37,081,333
305,002
235,518
37,081,333
37,621,853
At 31 December 2021 (Restated)
Owned assets
567,494
197,035
-
764,529
Right-of-use assets
-
-
30,241,119
30,241,119
567,494
197,035
30,241,119
31,005,648

More information on impairment movements in the year is given in note 9.

11
Trade and other receivables
Current
Non-current
2022
2021 (Restated)
2022
2021
£
£
£
£
VAT recoverable
44,752
347,246
-
-
Amounts owed by fellow group undertakings
8,246,618
4,315,274
-
0
-
0
Other receivables
22,520
-
830,454
152,384
Prepayments and accrued income
35,719
45,457
-
-
8,349,609
4,707,977
830,454
152,384
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Trade and other receivables
(Continued)
- 24 -

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

12
Trade and other payables
2022
2021 (Restated)
£
£
Trade payables
539,701
287,233
Amounts owed to fellow group undertakings
4,911,205
3,943,601
Accruals and deferred income
385,366
-
0
Other payables
48,964
255,352
5,885,236
4,486,186

Amounts due to group undertakings are unsecured, interest free, have no fixed date of repayment and repayable on demand.

13
Lease liabilities
2022
2021 (Restated)
Maturity analysis
£
£
Within one year
8,535,604
5,420,684
In two to five years
34,994,956
27,911,126
Total undiscounted liabilities
43,530,560
33,331,810

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2022
2021 (Restated)
£
£
Current liabilities
8,535,604
5,420,684
Non-current liabilities
34,994,956
27,911,126
43,530,560
33,331,810
2022
2021 (Restated)
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
4,356,099
2,686,188
Other leasing information is included in note 17.
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
14
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,822
9,562

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
16
Other reserves
2022
2021
£
£
At the beginning of the year
24,194
-
Additions
83,029
24,194
At the end of the year
107,223
24,194

The Company’s ultimate parent, Sonder Holdings Inc, issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value at the date of the grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of when the shares will vest and adjusted for the effect of non-market based vesting conditions. The corresponding impact is a credit to other reserves.

17
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2022
2021
£
£
Expense relating to short-term leases
1,472,041
244,100
Expense relating to leases of low-value assets
166,506
-
Expense relating to variable lease payments not included in lease liabilities
-
398,908
Information relating to lease liabilities is included in note 13.
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
18
Subsequent events

Marriott Agreement

On 19 August 2024, Sonder Holdings Inc, the ultimate parent of Sonder Hospitality UK Ltd ,announced that it had entered into a long-term strategic licensing agreement with Marriott International, Inc. Through this strategic agreement over 9,000 live Sonder units are expected to join the Marriott portfolio by the end of 2024, with additional units anticipated to join the Marriott system at later dates. Sonder properties are expected to be fully integrated with Marriott’s extensive distribution channels and are expected to participate in the Marriott Bonvoy travel program with over 201 million members. Full integration with Marriott’s digital channels and platform will occur in 2025.

 

Management expects this strategic agreement to unlock significant opportunities for increased revenue and efficiency, including:

19
Controlling party

In the opinion of the directors, the Company’s ultimate parent company and ultimate controlling party is Sonder Holdings Inc, a company incorporated in Delaware, whose registered office is set out in Note 1. Sonder Holdings is also the smallest and largest group in which the Company is included which prepares consolidated financial statements. Copies of the Sonder Holdings Inc. financial statements can be obtained from the Company secretary. The Company is a direct subsidiary of Sonder International Holdings Limited, a company incorporated in the United Kingdom, whose registered office is 1 Bartholomew Lane, London, United Kingdom, EC2N 2AX.

20
Prior period adjustment

The 2021 statement of comprehensive loss, balance sheet, and statement of changes in equity have been restated for the correction of errors and reclassification as stated below.

 

On 1 January 2019, International Financial Reporting Standards (“IFRS”) 16 introduced a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right of-use (“ROU”) asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.

 

Following the completion of the prior year financial statements, the Company identified that certain leases entered into and accounted for in 2021 had errors in lease expense recognition patterns, errors in commencement dates, or other errors which required that the balances be restated herein. The following tables present the line items affected by the correction as discussed above, as indicated by the column entitled “restatements.”

Changes to the statement of financial position
At 31 December 2021
Previously reported
Adjustment
As restated
£
£
£
Fixed assets
Property, plant and equipment
29,795,046
1,210,602
31,005,648
Current assets
Debtors due within one year
4,458,286
249,691
4,707,977
Creditors due within one year
Lease liabilities
(5,324,619)
(96,065)
(5,420,684)
Creditors due after one year
Lease liabilities
(26,546,898)
(1,364,228)
(27,911,126)
Net assets
34,212
-
34,212
SONDER HOSPITALITY UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
20
Prior period adjustment
At 31 December 2021
Previously reported
Adjustment
As restated
£
£
£
(Continued)
- 27 -
Capital and reserves
Total equity
34,212
-
34,212
Changes to the income statement
Period ended 31 December 2021
Previously reported
Adjustment
As restated
£
£
£
Revenue
19,766,813
249,691
20,016,504
Other operating expenses
(5,705,209)
-
(5,705,209)
Depreciation
(9,253,875)
(222,555)
(9,476,430)
Staff costs
(2,138,660)
-
(2,138,660)
Finance costs
(2,659,052)
(27,136)
(2,686,188)
Profit for the financial period
10,017
-
10,017
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