Sonder, a worldwide short-term rentals company, suddenly collapsed over the weekend after its bookings partnership with Marriott ended, leaving guests worldwide without accommodation on short notice.
A Sonder customer in Montreal, where the corporate was founded, told CNN that they received an email on Sunday afternoon informing them that they needed to vacate by the next day at 9 a.m., because Sonder’s licensing take care of Marriott was “now not in effect.”
“I asked the staff if we could still stay until our checkout at 11 a.m., however the staff explained he had only received instructions to empty the constructing ASAP and that, unfortunately, we only had 10 to quarter-hour,” he told CNN.
Marriott said in a statement on Sunday that its 20-year licensing agreement with Sonder was terminated as a consequence of its “default.”
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“Consequently, Sonder isn’t any longer affiliated with Marriott Bonvoy, and Sonder properties aren’t available for brand new bookings on Marriott’s channels,” the statement continued.
Sonder, which was once valued at $1.9 billion and touted as a rival to Airbnb, encountered financial difficulties when the COVID-19 pandemic struck, leading to a decline in its market value in 2022.
Its take care of Marriott, which was reached in August 2024, tethered over 9,000 live Sonder properties to the hotel chain’s portfolio, meaning its short-term rentals may very well be booked on Marriott’s platform.
The corporate announced in its own statement on Monday that it had initiated liquidation proceedings as a consequence of its inability to enhance its financial condition.
“In light of those unsuccessful efforts and the Company’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 statement reads.
“We’re devastated to succeed in a degree where a liquidation is the one viable path forward,” Janice Sears, interim chief executive officer of Sonder, said.
Sonder operated quite a few hotels through long-term leases, leading to an asset-heavy model, in accordance with CNBC.
Connie Yang, a traveller staying at a Sonder property in Latest York City, told the outlet that she paid upfront for her stay from Nov. 7 to Nov. 17.
On Nov. 9, she was notified via email that she had to ascertain out of the hotel by 9 a.m. the next day.
“The whole constructing was asked to vacate,” she said.
“My neighbour helps her husband through cancer therapy, and so they have paid for the month. It’s beyond comprehension.”
She also said a few of Sonder’s on-site staff were crying as “they knew nothing.”
On Monday morning, “people were scrambling to depart before they locked down the constructing,” she said.
Videos posted by people saying they were affected by Sonder’s sudden collapse have also been circulating online.
One couple, who share the travel TikTok account minjunandkevin, posted a three-part series recounting their experience of being forced out of their Latest York City hotel halfway through a stay that they had pre-paid for in full, which they are saying left them scrambling to seek out alternative accommodation as a consequence of the high cost of hotels in town.
Sonder was founded in 2014 by McGill University students Francis Davidson and Lucas Pellan. It later relocated its headquarters to San Francisco. Before declaring bankruptcy, Sonder operated in greater than 40 cities across 10 countries.
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