Sonder, a global short-term rentals company, suddenly collapsed over the weekend after its bookings partnership with Marriott ended, leaving guests worldwide without accommodation on short notice.
A Sonder customer in Montreal, where the company was founded, told CNN that they received an email on Sunday afternoon informing them that they needed to vacate by the following day at 9 a.m., because Sonder’s licensing deal with Marriott was “no longer in effect.”
“I asked the staff if we could still stay until our checkout at 11 a.m., but the staff explained he had only received instructions to empty the building ASAP and that, unfortunately, we only had 10 to 15 minutes,” he told CNN.
Marriott said in a statement on Sunday that its 20-year licensing agreement with Sonder was terminated due to its “default.”
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“As a result, Sonder is no longer affiliated with Marriott Bonvoy, and Sonder properties are not available for new bookings on Marriott’s channels,” the statement continued.
Sonder, which was once valued at $1.9 billion and touted as a rival to Airbnb, encountered financial difficulties when the COVID-19 pandemic struck, resulting in a decline in its market value in 2022.
Its deal with Marriott, which was reached in August 2024, tethered over 9,000 live Sonder properties to the hotel chain’s portfolio, meaning its short-term rentals could be booked on Marriott’s platform.
The company announced in its own statement on Monday that it had initiated liquidation proceedings due to its inability to improve its financial condition.
“In light of these unsuccessful efforts and the Company’s financial condition, the Board of Directors made the difficult decision to wind-down operations and pursue a court-supervised liquidation of the U.S. business immediately,” the statement reads.
“We are devastated to reach a point where a liquidation is the only viable path forward,” Janice Sears, interim chief executive officer of Sonder, said.
Sonder operated numerous hotels through long-term leases, resulting in an asset-heavy model, according to CNBC.
Connie Yang, a traveller staying at a Sonder property in New York City, told the outlet that she paid in advance for her stay from Nov. 7 to Nov. 17.
On Nov. 9, she was notified via email that she had to check out of the hotel by 9 a.m. the following day.
“The entire building was asked to vacate,” she said.
“My neighbour is helping her husband through cancer therapy, and they have paid for the month. It is beyond comprehension.”
She also said some of Sonder’s on-site staff were crying as “they knew nothing.”
On Monday morning, “people were scrambling to leave before they locked down the building,” she said.
Videos posted by people saying they were affected by Sonder’s sudden collapse have also been circulating online.
One couple, who share the travel TikTok account minjunandkevin, posted a three-part series recounting their experience of being forced out of their New York City hotel halfway through a stay they had pre-paid for in full, which they say left them scrambling to find alternative accommodation due to the high cost of hotels in the city.
Sonder was founded in 2014 by McGill University students Francis Davidson and Lucas Pellan. It later relocated its headquarters to San Francisco. Before declaring bankruptcy, Sonder operated in more than 40 cities across 10 countries.
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