Marriott Ends Deal With Sonder, Guests Left Stranded

Washington, D.C. — Marriott International announced the immediate termination of its licensing agreement with Sonder, leading to the company’s swift liquidation and closure. This decision has raised concerns within the hospitality industry about the risks associated with cash-strapped partnerships.

On November 9, 2025, Marriott confirmed the abrupt end of the partnership that began in 2024, which allowed Sonder to advertise its properties on Marriott’s booking platforms. Marriott cited a “default” by Sonder as the reason for the termination but did not provide specific details.

Sonder, a company founded in 2014 that positioned itself as a hybrid between traditional hotels and vacation rentals, announced it would initiate Chapter 7 liquidation in the U.S., due to severe financial constraints and challenges in merging technology systems with Marriott. Interim CEO Janice Sears expressed the company’s devastation at this outcome.

Emails sent to current guests informed them that they had to vacate properties immediately. Guests reported chaotic scenes, with many unable to access rooms and employees abruptly laid off. One traveler stated she received a notification while out of state, leaving her unable to retrieve her belongings.

Co-host of the Good Morning Hospitality podcast, Michael O’Neill, remarked that Marriott’s decision is unprecedented. “In my lifetime, I don’t remember Marriott ever pulling a brand this abruptly,” he said. “It tarnishes the brand’s reputation for reliability.”

Sonder went public in 2022 but failed to achieve profitability and experienced mounting operational challenges. Despite raising significant funds, it struggled with cash flow and missed payments to Marriott, prompting creditors to reconsider support.

Marriott touted the partnership as a low-risk expansion into the apartment-hotel market, but the fallout now prompts questions about the viability of similar licensing deals. While Marriott claims it is working to support affected guests and redirect them to alternative accommodations, customer satisfaction has sharply declined amid these developments.

Analysts warn this situation illustrates the vulnerabilities in the hospitality industry’s licensing arrangements, which may require more rigorous financial vetting moving forward. Marriott has yet to announce plans for handling former Sonder properties now that the partnership is dissolved.