Lead: Guests in multiple countries were abruptly told to leave Sonder properties after the short‑term rentals firm entered insolvency proceedings following the end of a leasing deal with Marriott. The termination came about a year after the two companies began integrating, and Marriott said Sonder’s default prompted the split. Travelers reported being locked out, finding luggage in the street, or having to rebook at short notice while some staff were left unpaid or laid off.
Key Takeaways
- Sonder has initiated insolvency/liquidation procedures across all territories after Marriott terminated a leasing agreement; thousands of rooms in over 40 cities will close.
- Marriott ended the partnership about one year after it began, citing Sonder’s default and integration failures with the Marriott Bonvoy reservation system.
- Guests who booked via Marriott platforms are being assisted for refunds; Marriott advises third‑party bookers to seek refunds through their card issuers.
- Staff at some properties, including front desk manager Rob Goodwin in New York, reported erratic communication, unpaid hours, and sudden job losses.
- Sonder said technology integration delays caused significant costs and a sharp revenue decline tied to Marriott Bonvoy participation.
- Some properties rely on contactless entry; guests reported access codes failing and difficulty retrieving belongings when operations ceased.
Background
Sonder, founded in Montreal, built a business model around premium serviced apartments and short‑stay lodging that often operate with minimal on‑site staff and rely on digital check‑in. The company expanded to thousands of rooms across more than 40 cities, positioning itself as an alternative to traditional hotels and a peer to platforms such as Airbnb.
About a year ago Sonder and Marriott began a leasing and distribution arrangement that allowed Sonder inventory to be bookable through Marriott’s channels and the Marriott Bonvoy system. The deal was intended to give Sonder broader visibility and access to loyalty customers while boosting Marriott’s nontraditional lodging options.
However, integration of systems and booking platforms proved more complex and costly than expected. Sonder’s interim chief executive said alignment problems between the companies’ technology frameworks delayed the project and contributed to mounting financial strain.
Main Event
The immediate trigger was Marriott’s announcement that it would terminate its leasing agreement with Sonder, citing what it called “Sonder’s default.” Marriott subsequently removed Sonder listings from its site and app and said it would help customers who booked directly through Marriott channels pursue refunds.
Guests around the world reported being instructed to vacate properties mid‑stay. One guest on Reddit said he could not re‑enter his rented unit to retrieve personal items and detailed trudging through city streets with luggage. Several guests posted images of suitcases on sidewalks while searching for new rooms.
At the Sonder The Merchant in lower Manhattan, front desk manager Rob Goodwin encountered booking errors when trying to extend a guest’s stay; extension dates vanished from the system despite the property being about 80% occupied. He later encountered an email from Marriott telling a guest to leave by the next morning. Goodwin worked long shifts assisting displaced guests but says he was paid for only half the hours and is now unemployed.
Sonder’s public statement acknowledged “severe financial constraints” tied to prolonged integration challenges and said a sharp revenue decline followed its participation in Marriott Bonvoy. The company said liquidation was the only viable path forward and that all properties would close as it seeks insolvency proceedings in jurisdictions where it operates.
Analysis & Implications
The collapse underscores operational and financial risks when hospitality firms pursue rapid platform integrations across disparate systems. Technology alignment—reservation databases, channel managers, loyalty program interfaces—can be costly and, if delayed, curtail expected revenue streams that underwrite leases and operating cash flow.
For guests, this episode highlights the difference in protections between bookings made through an established global chain’s platform versus a third party or directly with a smaller operator. Marriott says it will facilitate refunds for bookings made on its platform, but third‑party bookers may face greater friction and must rely on card issuers or host policies.
Employees at lightly staffed, tech‑driven lodging brands are particularly exposed in sudden insolvencies. Staff who support remote or contactless properties may lack clear employer points of contact, creating gaps in emergency response and pay continuity—issues that could spark regulatory scrutiny in some cities.
Broader market implications may include greater caution among institutional partners and franchisors about leasing exposure to asset‑light operators whose margins depend on successful distribution integrations. Lenders, property owners and distribution partners may tighten terms or demand stronger financial covenants in future deals.
Comparison & Data
| Company | Scale (reported) | Recent action |
|---|---|---|
| Marriott | ~9,700 properties, 30 brands, 143 countries | Terminated leasing agreement with Sonder; removed listings from its platforms |
| Sonder | Thousands of rooms in 40+ cities | Entering insolvency/liquidation; properties to close |
The table summarizes public figures cited by companies and reporting. Marriott’s global footprint and diversified business model differ sharply from Sonder’s asset‑light, technology‑driven portfolio, which amplified revenue volatility when the distribution partnership faltered.
Reactions & Quotes
“We are devastated to reach a point where a liquidation is the only viable path forward,”
Janice Sears, Sonder (interim CEO)
Sears’ statement framed the collapse as driven by integration delays and the resulting costs and revenue decline tied to Marriott Bonvoy participation.
“Sonder’s default” led us to end the agreement,”
Marriott (corporate statement)
Marriott emphasized contractual default and said it will assist customers who booked via Marriott channels while advising third‑party bookers to seek refunds through issuers.
“It was a mess. It was a huge mess,”
Rob Goodwin, former front desk manager
Goodwin described chaotic communications, long unpaid hours supporting guests, and sudden unemployment after the closure.
Unconfirmed
- Claims that specific guests were permanently locked out of units: multiple user reports exist but individual incidents remain partly unverified by official records.
- Reports that Marriott charged customers hundreds of dollars for immediate rebooking at Courtyard hotels are anecdotal and unconfirmed by Marriott’s corporate communications.
- Exact counts of affected guests and precise unpaid wage totals for staff are not yet independently verified across all locations.
Bottom Line
Sonder’s insolvency and the rapid removal of its inventory from Marriott channels produced immediate disruption for travelers and employees, revealing vulnerabilities in asset‑light hospitality models that depend on flawless technological integration and stable distribution partnerships. Travelers who booked through large platforms may have smoother refund paths; those who booked directly or via third parties face more uncertainty.
For property owners, lenders and distribution partners, the episode will likely prompt stricter due diligence, closer technical audits during integrations, and demands for stronger financial protections in contracts. Regulators and local authorities may also examine consumer protections for guests left stranded by sudden operator failures.