Sonder Enters Insolvency Proceedings, Marriott Terminates Partnership
Sonder has sought insolvency proceedings in all territories and announced that all its properties will close. The company faced severe financial constraints arising from challenges integrating its systems and booking arrangements with Marriott International. These integration delays and higher costs contributed to a decline in revenue from the Marriott Bonvoy portfolio.
Marriott International has terminated its leasing agreement with Sonder, citing Sonder's default as the reason for ending the partnership that enabled bookings via Marriott platforms. As a result, Sonder bookings on Marriott platforms have ended. Marriott is assisting customers who booked through its own platform, coordinating refunds where possible, while customers who made bookings through third parties are advised to seek refunds via their credit card issuers.
The Marriott Bonvoy portfolio includes over 9,700 properties, 30 brands, and operates in 143 countries. Marriott does not charge customers' cards for Sonder bookings but will work to coordinate refunds with the relevant parties.
Customers experienced significant disruptions during their stays, including reports of rooms becoming inaccessible and guests being asked to vacate properties. Staff at affected properties have been working to assist guests amid Sonder's collapse.
Janice Sears, Sonder's interim CEO, stated that liquidation is the only viable path forward given the circumstances, highlighting the costly delays and revenue drops linked to the Marriott Bonvoy integration as major contributing factors.
