Revitalizing Cities: How Sonder is Partnering with Property Owners on Office-to-Hospitality Conversions

As cities worldwide adapt to changing work trends and rising office vacancies, the adaptive reuse of underutilized buildings has become a key solution for revitalizing urban spaces. Converting office buildings into multifamily residences or hotels addresses both surplus office inventory and the growing demand for housing and hospitality. At the forefront of this trend is Sonder Holdings Inc., (NASDAQ: SOND, “Sonder”, “the Company”) a leading global operator of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Sonder’s adaptive reuse projects showcase the Company’s expertise in working with owners to transform empty office buildings into thriving hospitality assets while preserving their historical character.

Sonder honors the history and heritage of buildings while re-imagining the spaces for a unique and modern guest experience. From Glasgow to Los Angeles, Sonder breathes new life into office buildings, blending thoughtful design and technology with a keen understanding of market demands.

Launching The Teacher Building in Glasgow

Originally built in 1875 as the headquarters of the globally renowned Teacher’s Whiskey, Sonder has collaborated with the property owner and Mosaic Architecture + Design to transform this landmark building in the heart of Glasgow city center.?

The property’s iconic ‘Teacher’ gilded sign was carefully refurbished and reinstated, along with repairs to the building’s facade and new external lighting. Modern building systems were seamlessly integrated into the original building to enhance energy efficiency, ensuring the property’s sustainable future and meeting the demands of guests. The building was also adapted to meet current fire safety standards, safeguarding it for the future. One particularly complex challenge was the installation of a sprinkler system, which required innovative engineering solutions and close collaboration with fire safety specialists to maintain the integrity of the property.

Sonder now offers 25 beautifully designed serviced apartments in the Teacher, marking the beginning of a new chapter for this historic building as a vibrant destination for leisure and business travelers. “The project exemplifies how thoughtful collaboration and innovation can redefine historic spaces for a new generation, breathing life into heritage properties while meeting modern needs,” said Alix McAlinden , Director of Real Estate at Sonder.

Transforming Vacancies into Vibrant Spaces all Over the World

• The Winfield, Los Angeles: Located in Downtown Los Angeles’s Jewelry District, The Winfield occupies the historic Foreman & Clark Building, an Art Deco and Gothic architectural gem constructed in the late 1920s. After years of vacancy, this 125-key hotel now welcomes Sonder guests and features modern amenities, including: sleek kitchen-equipped suites, a gym, a yoga room, outdoor terraces, and penthouses with breathtaking skyline views.

• The Craftsman, Los Angeles: Another Downtown Los Angeles icon, The Craftsman, is located in the historic Lane Mortgage Building designed in 1923 by architect Loy Lester Smith. This 12-story, 110-key hotel retains its original tile artwork by Ernest Batchelder while introducing airy interiors, brass accents, and a warm, inviting aesthetic. The property is a testament to how historic architecture can harmonize with modern hospitality.

• Sonder Sofía, Madrid: In the heart of Madrid near the Museo Nacional Centro de Arte Reina Sofía and La Casa Encendida, Sonder operates 36 multifamily-style units in a formerly long-vacant office building. This property now offers fully equipped apartments for short- and long-term stays, catering to both business and leisure travelers. Its proximity to iconic landmarks and efficient public transportation highlights the value of adaptive reuse in vibrant city centers. Read more about Sonder Sofía here.?

A Strategic Approach to Adaptive Reuse

Successful adaptive reuse projects require thoughtful solutions to address challenges like structural layouts, natural light optimization, and amenity integration. Creative design is critical to turning office spaces into appealing modern residences or hotels. Sonder aims to incorporate? these principles in each new property:

• Optimized Unit Layouts: Kitchen-equipped suites at The Winfield and multifamily-style apartments at Sonder Sofía provide flexibility for guests, from weekend travelers to extended-stay residents.

• Preservation Meets Modernization: From the Batchelder tilework at The Craftsman to the marble floors at The Winfield, Sonder preserves each property’s architectural significance while introducing contemporary comforts.

• Community-Centric Amenities: Amenities like gyms, terraces, and communal spaces foster connection and create a sense of community, enhancing guest satisfaction and property value.

“Sonder’s success lies in its ability to partner with property owners and developers, offering end-to-end expertise in design, operations, and revenue management. By transforming underperforming office buildings into vibrant properties, Sonder not only maximizes value for owners but also contributes to urban revitalization.” ? Zachary Okyle , Senior Director of Real Estate at Sonder.

Revitalizing Urban Spaces, One Building at a Time

As cities grapple with the challenges of office vacancies, Sonder’s portfolio of adaptive reuse projects serves as a blueprint for success. These conversions demonstrate how thoughtful design and operational excellence can unlock the potential of underutilized buildings.

By combining modern technology with design-forward strategies, Sonder continues to shape the future of urban living and hospitality.

For property owners and developers interested in partnering with Sonder in the UK and Ireland, contact [email protected] to explore opportunities