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Sonder Begins Chapter 7 Liquidation After Marriott Ends Deal, Displacing Guests Mid-Stay

Sonder says delayed and costly integration with Marriott’s Bonvoy system triggered a severe revenue drop that left liquidation as the only option.

Overview

  • Marriott confirmed the licensing agreement is no longer in effect due to Sonder’s default, removed Sonder inventory from Bonvoy, and will contact customers who booked through Marriott channels.
  • Travelers in cities including New York, Boston, Montreal, Amsterdam, London and Dubai reported being told to vacate with less than 24 hours’ notice, with some returning to find belongings bagged in hallways.
  • Sonder announced an immediate wind-down and plans a Chapter 7 liquidation of its U.S. business with insolvency proceedings in other markets, signaling asset sales and creditor claims rather than reorganization.
  • Interim CEO Janice Sears cited unanticipated integration costs and a sharp revenue decline tied to the Bonvoy rollout, compounding strain from Sonder’s asset-heavy leasing model and persistent losses.
  • Marriott said it aims to minimize disruption for current and upcoming stays, while guests who booked via third-party sites are being directed to those providers; the company now projects lower full-year net rooms growth.