Sonder Files for Insolvency After Marriott Ends Partnership, Displacing Guests
Sonder, a Montreal-founded company operating thousands of premium serviced-apartment rooms in over 40 cities and competing with Airbnb, has filed for insolvency following the termination of its lease by Marriott. This ended their partnership and removed Sonder bookings from Marriott's platforms.
Guests were abruptly told to leave mid-stay, with some unable to re-enter rooms and others forced to find alternative lodging. Front-desk manager Rob Goodwin described long hours assisting guests and dealing with system errors that prevented extending stays, alongside access-code and communication problems.
Marriott attributed the lease breakup to Sonder's default, stating it would assist guests who booked via Marriott platforms while directing refunds for third-party bookings to the customers' card issuers. Marriott operates about 9,700 properties under 30 brands in 143 countries, including the Marriott Bonvoy booking and rewards program.
Sonder cited severe financial constraints linked to challenges integrating its systems and booking arrangements with Marriott across all territories as a key reason for insolvency. Interim CEO Janice Sears explained that the integration with Marriott was substantially delayed due to unexpected technology alignment issues, which incurred costs and contributed to a revenue decline tied to Marriott Bonvoy participation.
As a result, all Sonder properties are closing as the company pursues insolvency proceedings, affecting staff and operations extensively.
