Sonder Shuts Down After Marriott Halts Partnership, Leaving Guests Stranded

New York, NY — The sudden termination of Marriott‘s licensing deal with Sonder has led to the complete shutdown of the apartment-hotel operator, leaving guests scrambling for new accommodations. On Sunday, Marriott announced the immediate end of its partnership with Sonder, citing a “default” by the company without providing further details.

Sonder confirmed on Monday that it will begin immediate liquidation of its U.S. operations and initiate insolvency proceedings in international markets. The company attributed its downfall to “severe financial constraints” and difficulties in integrating its technology with Marriott’s systems. This situation resulted in unexpected costs and a significant decline in revenue.

Janice Sears, Sonder’s interim CEO, expressed her devastation in a statement. “We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets,” she said. Guests received emails informing them their stays would end immediately, causing widespread confusion and frustration among travelers.

Paul Strack, a guest in Boston, initially mistook the email about his reservation’s cancellation for a scam. After returning to his rental, he found his family’s belongings packed and left in a hallway. He described the situation as incredibly distressing.

This abrupt closure came just months after the partnership between Marriott and Sonder was intended to provide a low-risk expansion into apartment-style stays. However, by late 2024, signs of financial trouble emerged as Sonder struggled to meet payment terms with Marriott.

Guests reported being forced to leave booked accommodations with little notice. One traveler, a retired tech executive, was in New York City with his family when they received their eviction notice. They had to pay thousands for last-minute accommodations to continue their trip.

Marriott has since stated that it is working to assist affected guests with alternative bookings. However, the impact on the company’s reputation may endure, especially as it rolls out its new extended-stay brand, Apartments by Marriott Bonvoy.

The situation serves as a cautionary tale about the risks associated with partnerships between major hotel chains and smaller operators that may not have the financial stability needed to sustain their operations.