Belvilla Seizes On Sonder's Downfall To Enter U.S. Market With 10 Hotels
European hospitality player Belvilla is entering the U.S. hospitality market by acquiring the rights to 10 properties through Sonder's liquidation.
Amsterdam-based Belvilla, which specializes in short-term rentals and apartment-style hotel rooms, secured the properties through Sonder’s ongoing Chapter 7 bankruptcy process, where 79 properties in total are up for grabs, according to a release. The deal is Belvilla’s first operational business outside of Europe.
Belvilla, a subsidiary of SoftBank-backed Oyo Hotels, has already started operating three of the properties under its Belvilla District 6 brand: Court Square and The Dutch at 45-06 Pearson St. and 39-35 27th St., respectively, in Long Island City, Queens, and The Louie at 300 S. Rampart St. in New Orleans.
“The model creates a win-win partnership built on sustainability rather than short-term expansion,” real estate investor Peter Papamichael, who owns Court Square, said in a release. “Belvilla’s focus on operational clarity and long-term economics gives owners like me confidence.”
The other former Sonder properties it took over include The Industrialist in Brooklyn, RailSpur in Seattle, The Schaeffer in New Orleans, Skyline in Denver, The Queen in Philadelphia, East 5th in Austin and Ida in Phoenix.
Belvilla will initially operate a limited number of properties, according to the release, but it’s unclear how many. Belvilla didn't immediately respond to a request for comment.
“The U.S. represents an important opportunity for us,” said Ankit Tandon, global chief operating officer and Europe CEO of Belvilla’s parent company, Prism, in a statement. “We are already in touch with additional owners who are keen to sign up with Belvilla.”
Sonder, which signed long-term leases for blocks of space in hotels and apartment buildings and rented them out as short-term rentals, filed for Chapter 7 liquidation in November, citing “severe financial constraints.” It had around 8,300 units in 152 properties as of June.
The short-term rental company shuttered a day after a licensing deal between Sonder and Marriott fell apart after Sonder ran out of cash. Thousands of guests had their future reservations canceled, and some staying at Sonder properties were told they had to vacate.
