Sonder Halts Operations as Marriott Partnership Ends

There’s more bad news for Sonder — the apartment-style hotel brand that Marriott began licensing last year. On November 10, the company announced it would immediately cease operations and enter Chapter 7 liquidation of its U.S. business.

Here’s what we know.

Sonder Files For Bankruptcy

Sonder by Marriott Bonvoy is no more. The hotel company, which offered Airbnb-style accommodations, announced that it would file for Chapter 7 bankruptcy.

This comes just a day after Marriott announced, in a rather cryptic statement, that it had ended its licensing agreement with Sonder due to the company’s “default.” The hotel giant didn’t release more information — except to update its financial outlook — but it was clear that the writing was on the wall.

Sonder pointed to several issues contributing to its insolvency — and it wasn’t shy about where it placed the blame.

“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,” said interim CEO Janice Sears.

Last year, Sonder entered into a licensing agreement with Marriott. The agreement allowed Sonder properties to be earned and redeemed with Marriott Bonvoy points. The company had a handful of properties in cities such as New York and Dubai, among others.

What To Do If You Have a Sonder Reservation

We have seen countless horror stories of stranded travelers after companies have gone under — and Sonder’s insolvency is no exception.

If you have a Sonder reservation, you have several options for getting refunded and finding new accommodations. Marriott recommends contacting your credit card company to request a refund if you booked through its platform.

If you’re currently on a trip, Marriott says you should have received an email about the potential to rebook at another Marriott Bonvoy property. If you haven’t, you’ll need to reach out to customer service.

Finally, if you booked through an online travel agency (OTA), such as Hotels.com or Expedia, you should contact your respective booking agency.

Final Thoughts

Sonder has ceased operations just a day after Marriott ended its agreement with the hotel chain. This is pretty unfortunate news. Sonder served a specific market of travelers who wanted apartment-like stays with the luxury and convenience of staying at a hotel. Now, the company is no more.