Particle.news
Download on the App Store

Sonder Collapses Into Liquidation After Marriott Split, Forcing Abrupt Guest Evictions

The company says delayed, costly integration with Marriott’s Bonvoy system gutted revenue, prompting Marriott to terminate the deal for default.

Overview

  • The short-term rental operator is winding down globally through a U.S. Chapter 7 court-supervised process, with insolvency actions planned overseas.
  • Marriott removed Sonder listings from its channels and says it is contacting customers who booked through Bonvoy with refunds or rebooking options.
  • Travelers in cities including New York, Montreal, London and Boston reported less than 24 hours’ notice to vacate, with some finding belongings bagged in hallways.
  • Guests who booked via third-party platforms or directly with Sonder are being directed to those providers or their card issuers for remedies, leading to mixed results.
  • Founded in 2014, Sonder operated in more than three dozen cities with roughly 1,400 employees and had leaned on the 2024 Marriott deal after years of profitability challenges.