Marriott cuts ties with Sonder and rental firm winds down immediately

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- Short-term rental company Sonder has filed for bankruptcy and is immediately ceasing operations.
- Some travelers have been asked to vacate their rentals, while others have had upcoming bookings canceled.
- Marriott has stated it is committed to minimizing disruption for guests who booked through its channels.
Short-term rental company Sonder filed for bankruptcy on Nov. 10, issuing an announcement of “winding down operations immediately,” leaving some travelers high and dry.
The news came a day after Marriott International announced it was ending its licensing agreement with Sonder, claiming the rental company defaulted, Marriott said on Nov. 9. In the August 2024 agreement, travelers were able to book over 9,000 of Sonder’s apartment-style accommodations on Marriott Bonvoy’s website.
Sonder said it “has faced severe financial constraints” from challenges stemming from being integrated into Marriott International’s systems.
“We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets,” said Janice Sears, interim Sonder CEO in a statement.
With Sonder’s sudden shuttering, many travelers who have bookings with the company are scrambling. Some have reportedly been told to vacate their vacation rentals amid their trips or have their upcoming bookings canceled.
Marriott International and Sonder did not immediately respond to USA TODAY’s request for comment.
“To me, this is a people problem. Either the true information from Sonder wasn’t available, or the level of difficulty to execute was minimized,” said Bruce Rosenberg, HotelPlanner COO and global president. “There’s a lot of overconfidence in tech – people say, ‘Sure, we can do that,’ but the reality is, it’s a lot harder than it looks.”
Here’s what travelers should know about Sonder’s liquidation.
How are travelers being impacted?
According to CNBC and The New York Times, some guests were given 24 hours to vacate their rooms, and others received the notice slipped under their door. As travelers scramble to find new last-minute lodging, Rosenberg recommends people first turn to Marriott to see how the company plans to re-accommodate them. “Knowing Marriott, I think they’ll do the right thing,” he said. “They have a brand to protect, and they’ll take whatever steps they need to do a great job for their guests.”
Marriott said it “remains committed to minimizing disruption to guests’ travel plans.” The company added that its “immediate priority” is supporting those currently staying in or with upcoming reservations at Sonder properties. The company will contact guests who booked directly with Marriott. Those who went through a third-party provider should reach out to that provider.
Still, some customers may be difficult to re-accommodate, or want more than just a refund. “Consumers wanted that product for a specific reason,” Rosenberg said. “They didn’t want a single hotel room; they were looking for apartment-style accommodations. Their expectation is, ‘I need a better apartment, and I expect you to find that for me.'”




