Marriott Ends Partnership with Sonder After Contract Default

BENGALURU, India — Marriott International announced on Sunday that it has terminated its licensing agreement with Sonder Holdings due to a default by Sonder. The unexpected decision impacts thousands of hotel rooms previously listed under the Marriott brand.

Sonder, which provides apartment-style accommodations, had entered into a deal with Marriott in 2024, enhancing its liquidity by approximately $146 million. The agreement anticipated that over 9,000 units would join the Marriott system by the end of 2024. That collaboration allowed Sonder properties to be booked through Marriott’s channels.

In a statement, Marriott confirmed that Sonder is no longer part of its Marriott Bonvoy loyalty program and that new bookings for Sonder properties on Marriott’s platforms have been disabled. This development raises concerns about the future of Sonder, which had a market value of around $2.2 billion in 2021, but now is reportedly valued at just $6.79 million.

The termination is expected to reduce Marriott’s projected net rooms growth for 2025 down to 4.5%. Two weeks ago, the company anticipated a growth rate nearing 5%.

Sonder did not respond to requests for comment. In its press release, Marriott stated it will ensure support for guests who are currently staying at Sonder properties or have future reservations. Marriott is reaching out directly to guests who booked stays through its own channels.

Reportedly, many guests are receiving notifications to vacate Sonder properties immediately, and no new reservations are being accepted, creating uncertainty for travelers.

Katie Genter, a travel journalist, expressed surprise at the termination, noting her recent successful stay at a Sonder property booked with Marriott Bonvoy points.

“Nothing seemed amiss during my stay, so Sonder’s default comes as a shock,” she said.

Marriott plans to keep communicating with affected guests as the situation unfolds, showing a commitment to maintain customer service amidst these unexpected changes.