Particle.news
Download on the App Store

Sonder to Liquidate After Marriott Ends Deal, Guests Ordered to Leave Mid‑Stay

Marriott terminated the licensing agreement citing default following a delayed, costly integration that Sonder says gutted revenue.

Overview

  • Sonder said it is winding down immediately and expects to file for Chapter 7 in the U.S., with insolvency proceedings also planned overseas.
  • Marriott removed Sonder listings after declaring the 20‑year licensing agreement no longer in effect and said it would contact guests who booked through its channels.
  • Guests in multiple cities reported being told to vacate with less than 24 hours’ notice, with some returning to find belongings packed and left in hallways.
  • Marriott’s FAQ now advises affected customers who booked through its channels to seek refunds via their credit card issuers, a shift from earlier messages promising direct refunds.
  • Sonder, which operated thousands of units across roughly 40 cities and once carried a valuation near $1.9 billion, struggled with a lease‑heavy model, sustained losses, and tight liquidity before the shutdown; employees reported abrupt layoffs and rushed final payrolls.