Collapse of Sonder, a Marriott-backed hotel chain, leaves guests stranded mid-stay

Patrick M. D’Aoust probably didn’t expect his anniversary trip to end early, but he definitely didn’t think he’d have just 15 minutes to vacate his room.

The early ejection wasn’t because of a fire or a fight, but a bankruptcy. Sonder, a short-term rentals company abruptly collapsed over the weekend when its partnership with Marriott ended, leaving many guests stranded mid-stay.

D’Aoust was staying the weekend at a Sonder property in Montréal, Canada, when he got an email last Sunday afternoon that he needed to vacate his room by Monday at 9 am. That’s because Sonder’s licensing agreement with Marriott was “no longer in effect.”

“I asked the staff if we could still stay until our checkout at 11 am, 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.

D’Aoust is just one of the many travelers affected by Sonder’s shutdown following the sudden end of a deal with Marriott, which had let guests book and earn loyalty points at Sonder’s 9,000 furnished apartments and boutique hotel rooms in 40 cities across 10 countries.

Marriott said in a statement Sunday that the planned 20-year licensing agreement had ended because of Sonder’s “default,” a.k.a. financial difficulties.

The 2024 deal should’ve had been a boon for Sonder, which was once valued at $1 billion and considered a major Airbnb rival. Sonder sought to strike the sweet spot between a hotel and an Airbnb, offering guests the convenience of an all-digital check-in experience but for smaller properties ideal for solo travelers. However, the Covid-19 pandemic and a rough go in the public markets in 2022 ultimately spelled its doom. Sonder was relying on the strength of Marriott’s booking platform to give it a much-needed boost.

Sonder said in a statement Monday that it’s “winding down operations immediately” and entering Chapter 7, a complete liquidation of its business. The company blamed “severe financial constraints arising from, among other things, prolonged challenges in the integration of the company’s systems and booking arrangements with Marriott.”

Stories of guests being stranded mid-stay at Sonder properties are littered across social media, mostly putting the blame on Marriott. A Marriott spokesperson told CNN that it’s worked “tirelessly to remain informed about Sonder’s financial situation and develop action plans so that we can work to meet the needs of our guests.”

“Marriott is in communication with guests who have existing reservations at Sonder properties booked on Marriott.com and through other Marriott channels, and we are in contact with third-party platforms to communicate with guests who booked on other channels,” a spokesperson said.