In August 2024, Marriott announced a licensing agreement with Sonder, which primarily offers apartment-style accommodations in urban markets. These properties were being marketed under a new collection called Sonder by Marriott Bonvoy, and this included around 9,000 rooms being added to Marriott’s portfolio.
It was part of Marriott’s never-ending effort to increase its overall portfolio size at any cost. Well, there’s now a negative update on this front…
In this post:
Marriott & Sonder terminate agreement effective immediately
Marriott has today announced that it has terminated its licensing agreement with Sonder (yes, the announcement came on a Sunday). As a result, Sonder is no longer affiliated with Marriott Bonvoy, and Sonder properties are no longer available for new bookings through Marriott’s channels. Here’s how Marriott describes this:
Marriott’s immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations. Marriott will be contacting guests who booked directly through Marriott channels, including marriott.com, the Marriott Bonvoy App and Marriott’s worldwide reservation centers, to address their reservation and booking needs. Guests who booked through a third-party online travel agency should contact those organizations. Marriott remains committed to minimizing disruption to guests’ travel plans.
Guests with questions about current or future reservations at a Sonder property booked through Marriott channels can contact Marriott customer service.
As a result of this, Marriott expects its net room growth for 2025 to be around 4.5%, compared to the previous forecast of 5%.
This termination is due to Sonder’s financial issues
Marriott has terminated its agreement with Sonder due to the company’s default. Interestingly, there’s not much else out there yet publicly about the default, but I’d imagine that there will be a bigger announcement soon. Presumably Marriott doesn’t want to end up being on the hook for any screw-up on Sonder’s part.
For context, Sonder was founded in 2014, but has been an absolute financial disaster. The company went public in 2021 with a valuation of around $2.2 billion, and now has a market value of around $7 million, so that’s quite a dip. The company had losses of over $250 million in 2020, and nearly $300 million in 2021.
It hasn’t gotten much better in recent times, with Sonder having recently postponed its shareholders meeting, as it hopes to get a deal with creditors.
Frankly I find it quite embarrassing that these properties only joined Marriott Bonvoy in the spring of this year, and just months later, the partnership is being terminated due to a default. It really shows how Marriott will partner with just about anyone.
Sonder’s financial situation was so dire that this outcome seemed inevitable. And now of course Marriott isn’t doing anything for those guests who have future bookings at a Sonder property, which is rather disappointing. So if you haven’t completed your stay, you’re out of luck.
Bottom line
Marriott and Sonder have terminated their agreement, just months after the properties were integrated into the Marriott Bonvoy portfolio. This comes as Sonder has reportedly defaulted, and is seemingly nearing liquidation.
The irony here is that Sonder was already on the verge of collapse back when the partnership started, so this isn’t a surprise. But that didn’t stop Marriott from encouraging its Bonvoy members to book these properties, only to now tell them “tough luck.”
What do you make of Marriott and Sonder ending their partnership?
Marriott is kind of "out there" with Sonder and Homes. We learned not to ever stay at Marriott Homes again after a fiasco in Paris. Much of the Marriott advertising was Fake, fake photos, fake descriptions.
Sonder, visiting London last month, they looked attractive and a better price than the way over priced London hotels. We read reviews and decided to steer clear. A few weeks later we heard bankrupcy. Now Marriott quits.
We...
Marriott is kind of "out there" with Sonder and Homes. We learned not to ever stay at Marriott Homes again after a fiasco in Paris. Much of the Marriott advertising was Fake, fake photos, fake descriptions.
Sonder, visiting London last month, they looked attractive and a better price than the way over priced London hotels. We read reviews and decided to steer clear. A few weeks later we heard bankrupcy. Now Marriott quits.
We know its a race for every CEO to have more rooms than the other, we think Marriott risked too much.
We still like Marriott hotels, but we are staying away from any hotel brands homes or apartments.
I have a 6 month booking that no one has come back to me about travelling from australia and have been saving for this for ages...just so upset and the cost so close to christmas and holidays
I'm reading posts from Sonder employees saying that they're now "former Sonder employees" because the entire staff has been laid off, effective immediately. Not sure if Marriott forced this or is responding to it, but either way, they're handling it badly.
Rotterdam, same. Information yesterday night, you have to leave, find another place by yourself. Disgusting, as Alexandra said about London. Boycott Marriott and other world wide kind of thing
Staying at Sonda Ottawa - booked for 3 weeks. Just got told today i have to be out of my room by 9am. Not happy, Jan :(
Marriott is also losing some properties in major cities - they lost the Westin Vendôme, one of the best addresses in Paris (after losing the W few years earlier). This year they lost the Sheraton Diana in Milan which was at a really good location!
I’m not an expert, but while traveling abroad, it always feels that local hotel mgmt are really fed up with Marriott and their elite guests (I’m ambassador), and often...
Marriott is also losing some properties in major cities - they lost the Westin Vendôme, one of the best addresses in Paris (after losing the W few years earlier). This year they lost the Sheraton Diana in Milan which was at a really good location!
I’m not an expert, but while traveling abroad, it always feels that local hotel mgmt are really fed up with Marriott and their elite guests (I’m ambassador), and often encouraged to book directly (in the case of Design Hotels etc)
Yea , can’t evict people sorry Marriott
Maybe not in every market but certainly in a lot of them without some court involvement
So those folks should just stay put for gratis
Understand that there are laws and it may qualify as an eviction. I’d also be worried about fighting this out if keys stop working and there is no staff.
@Applesa
Marriott can refuse doing business with a customer.
Hotel guest do not have landlord/tenant relationship and protections.
You can't be evicted because you're not a tenant, but as a customer you're definitely trespassing.
At least Aprs was a bit knowledgeable.
Bonyvoyed! Yea it's quite strange from Marriott as their partnership is barely a yr old. I completed a stay with Sonder last month and after looking up the company & it's problems, I wasnt sure they could stay afloat without a bailout.
We are at William New York first email advised we had to vacate today. Then a short while later it said vacate the accommodation by 9am following day. No alternative accommodation offered despite out direct booking with Marriott. Told have to make and pay for your own alternative accommodation. Very disappointing customer support and care from Marriott who not bothered and seem to have no responsibility towards guests in the accommodation despite them pulling out...
We are at William New York first email advised we had to vacate today. Then a short while later it said vacate the accommodation by 9am following day. No alternative accommodation offered despite out direct booking with Marriott. Told have to make and pay for your own alternative accommodation. Very disappointing customer support and care from Marriott who not bothered and seem to have no responsibility towards guests in the accommodation despite them pulling out and not fulfilling their obligations towards customers who booked and staying in their accommodation
I am booked next year during a very famous festival, I booked early to avoid high fees and prepaid. I received an email this morning saying your reservations is cancelled. Called Marriott and they are not honoring the price at their other hotels that are now 5 times the amount to stay for the festival. If they knew Sonder was in financial trouble why would they let us book a few months ago. Thy said...
I am booked next year during a very famous festival, I booked early to avoid high fees and prepaid. I received an email this morning saying your reservations is cancelled. Called Marriott and they are not honoring the price at their other hotels that are now 5 times the amount to stay for the festival. If they knew Sonder was in financial trouble why would they let us book a few months ago. Thy said they are going to get us refunds eventually. Not sure how long that is. They should be responsible for rebooking guests for comparable properties and rates. Cost of them doing business/ and stupidity.
Way to do your due diligence there, Marriott.
Does anyone else suspect that maybe Sonder is shutting down tomorrow or something close to it? I’m just guessing, but people being told to leave with a hard deadline in the middle of their stays with less than 24 hours suggests much more than a failed alliance. If Sonder thought they had a future of any sort I would think they’d want to help people affected by this. I feel bad for each property’s employees and the guests affected.
As someone who notified by email on Sunday evening that I will need to vacate a Sonder apartment within 14 hrs. I can say this is unbelievable and the amount of unprofessionalism shown by both parties, Sonder, absolutely phone line takes you a human being to address the issue, and Marriot, after waiting for 2+ hrs and being hung up on 3 x, they have said there is nothing they will do other than they...
As someone who notified by email on Sunday evening that I will need to vacate a Sonder apartment within 14 hrs. I can say this is unbelievable and the amount of unprofessionalism shown by both parties, Sonder, absolutely phone line takes you a human being to address the issue, and Marriot, after waiting for 2+ hrs and being hung up on 3 x, they have said there is nothing they will do other than they can help me find a hotel for tomorrow. I am currently staying at a Sonder, out of the country and here on a work project for 4 months. There is no grace period to go from living in a fully furnished apartment one minute to “pack up 4 months of clothes, kitchen, laundry items and move to a hotel by 9am Monday morning” . This seems simply illegal, how is this allowed?
Hey Marriott, a lot of your licensed properties defaulted on the $100 CASH "Elite benefits guarantee".
When will you terminate those agreements too?
The annoying thing for the majority of guests with future bookings is that almost all stay, even flexible one we're charged to the credit card at time of booking. Only some corporate rates were exempt from this. Not that it will be too difficult to get the credit card company to manage that, just a annoying to have to deal with it.
There were a lot of good options in the partnership, I can see...
The annoying thing for the majority of guests with future bookings is that almost all stay, even flexible one we're charged to the credit card at time of booking. Only some corporate rates were exempt from this. Not that it will be too difficult to get the credit card company to manage that, just a annoying to have to deal with it.
There were a lot of good options in the partnership, I can see why Marriott would have been interested, and I can see why Sonder would have thought that the Marriott booking channel would have given them a needed boost. But it was probably too late.
This is pretty wild and maybe should be a bigger story. There were quite a few Sonder properties in Montreal that benefitted from this partnership and I don't know what they're going to do now - list on Airbnb I guess?
I have the property in Orlando booked for Christmas time. F Marriott and F Sonder. Scummy POS companies.
I am staying in a Sonder London property and was advised I have to vacate by 9am tomorrow.
This came through via email on Sunday night..to spam.
Sadly as I booked via a third party I was told to make my own plans.
Disgusting!!!
Make sure you absolutely trash the f out of that place.
Rather than trashing the place, if it's not too late, LOL.
I suggest you collect "collateral" from the place instead.
I booked directly through Marriott and wasn’t given any assistance, in fact a manager on the phone told me to lower my voice and calm down when I was upset about the situation…I’m lucky I have a friend I can crash with, bc no room rates were honored, refunds have been said to take upward of 30 days. Unreal.
it look shady TBH, was thinking to use hit in London Reviews didn't help
Worth noting that the termination is so aggressive that folks who are mid-way through their reservations - even if pre-paid - are being told to GTFO by tomorrow morning.
That’s absurd. Depending on the jurisdiction, wonder if that qualifies as ‘eviction,’ and whether any additional remedies other than mere partial refunds would apply. Oof. Seems like a nightmare for those affected.
You’ve just been Bonvoyed!