Marriott has terminated its licensing agreement with lodging rentals company Sonder due to Sonder’s “default,” Marriott said.
Marriott terminated its licensing agreement with Sonder on Sunday, Nov. 9, just months after the August 2024 deal that had allowed Sonder properties to be booked through Marriott’s Bonvoy website.
The day after Marriott pulled out, Sonder announced plans to file for bankruptcy on Monday, Nov. 10, despite efforts to improve its financial position. Sonder will pursue a Chapter 7 liquidation.
“In light of these unsuccessful efforts and (Sonder’s) financial condition, the Board of Directors made the difficult decision to wind-down operations and pursue a court-supervised liquidation of the U.S. business immediately,” the company said in a statement.
Guests ‘Left Scrambling’
Right after the Chapter 7 decision, Sonder hotel guests were sent packing. Many were left searching for housing on Sunday after being told they had to leave their rooms within the next 24 hours, according to CNBC. One guest, Connie Yang, told CNBC that her prepaid stay in New York from Nov. 7 to Nov. 17 had been canceled.
“People were scrambling to leave before they locked down the building,” she told the outlet.
Another guest staying at a hotel run by Sonder said that he was three days into a 12-day trip to Amsterdam when, on Nov. 10, he woke to find a letter had been slipped under his door. The letter said the hotel was closing and he needed to check out by 11 a.m.
They Said, They Said
In a Nov. 9 news release, Marriott said the deal ended due to “Sonder’s default,” explaining that “Sonder is no longer affiliated with Marriott Bonvoy, and Sonder properties are not available for new bookings on Marriott’s channels.”
In Sonder’s news release, interim CEO Janice Sears claimed that problems with Marriott Bonvoy’s website’s integration with Sonder caused the company to lose out on funds.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system,” Sears said.
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