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Sonder Files for Bankruptcy, Leaving Guests Displaced Mid-Stay
Global property rental firm Sonder abruptly filed for insolvency this week, forcing guests to vacate accommodations mid-holiday after its partnership with Marriott International collapsed. The company, once positioned as an upscale rival to Airbnb, cited financial strain from delayed system integrations with Marriott as the primary cause of its downfall.
Marriott Terminates Agreement, Citing Default
Marriott announced it had severed ties with Sonder, just one year after launching a collaboration that allowed Sonder's serviced apartments to be booked through Marriott's platforms, including its Bonvoy rewards system. In a statement, Marriott attributed the split to "Sonder's default" and said it was assisting guests who booked directly through its channels. Those who reserved via third parties were advised to seek refunds through their credit card issuers.
Sonder's interim CEO, Janice Sears, acknowledged the failure in a company statement, calling the liquidation "the only viable path forward." She blamed the collapse on "unexpected challenges" in merging technology frameworks with Marriott, which led to soaring costs and a "sharp decline in revenue" tied to the Bonvoy integration.
Guests Locked Out, Staff Abandoned
Across social media, stranded travelers shared images of lugging belongings through streets after being locked out of Sonder properties. Some reported door access codes failing with no immediate support, while others criticized Marriott for offering little assistance. One guest on X (formerly Twitter) claimed Marriott demanded "hundreds of dollars a night" to rebook at a Courtyard hotel, calling the response "useless."
"Marriott has been useless. They wanted to charge me hundreds to rebook at a Courtyard after Sonder's collapse."
Guest complaint on X, November 2025
In New York City, Rob Goodwin, a front desk manager at Sonder's The Merchant hotel in lower Manhattan, described the chaos firsthand. After discovering booking system errors on Sunday-despite 20% vacancy-he spent 16 hours over two days helping displaced guests, only to be paid for half the time. "It was a huge mess," Goodwin said, noting most guests sympathized with staff. He is now unemployed, supporting an 8-year-old daughter. "It's too expensive to be dealing with this right now."
From Airbnb Rival to Financial Ruin
Founded in Montreal, Sonder operated over 4,000 rooms in 40 cities, marketing itself as a premium alternative to traditional hotels and Airbnb. Its business model relied on leasing and managing apartments, often with minimal on-site staff. The Marriott partnership, announced in 2024, was intended to expand its reach but instead accelerated its demise.
Analysts suggest Sonder's reliance on Marriott's infrastructure-without adequate contingency plans-left it vulnerable when integration delays mounted. The company's statement hinted at broader "prolonged challenges" beyond the Marriott deal, though no further details were provided.
What Happens Next?
Sonder has initiated insolvency proceedings in all operating territories. Marriott, which manages 9,700 properties across 143 countries, emphasized that its core business remains unaffected. The company stated it does not process payments for Sonder bookings but will "coordinate with the appropriate parties" to facilitate refunds.
Affected guests and former employees, like Goodwin, are left navigating the fallout. Many expressed frustration over the lack of communication, with some reporting no prior notice of cancellations. The BBC has requested comment from both Marriott and Sonder regarding the complaints.
"We are devastated to reach a point where liquidation is the only viable path forward."
Janice Sears, Interim CEO, Sonder
