In summer 2024, Marriott signed a 20-year licensing deal with Sonder (early termination right after 5 years) providing ‘urban apartment-style accommodations’ in markets across North America, Europe and the Middle East.
Now all of a sudden they’ve terminated the agreement effective immediately. They promise to contact guests with reservations who booked direct through them.
- Sonder is financially troubled and they don’t want to be owed money they can’t collect
- And this is Marriott, so of course they set guest expectations with promises of benefits and points that won’t be fulfilled
Confirmed from Marriott: we are being evicted today because Marriott and Sonder parted ways. @Marriott @SonderStays @xJonNYC @LiveandLetsFly @garyleff https://t.co/NTYOkc9HJg
— Lontra Italiana (@LontraItaliana) November 9, 2025
When you book through Marriott, you think you are relying on them for your stay and your benefits. But you aren’t. And they don’t appear to have much obligation to stand behind their promises. There are rumors that Sonder could shut down – chapter 7, rather than 11! – but Marriott guests are being told they must leave today. And surely this pushes them into bankruptcy if they’d otherwise have avoided it?
Sonder postponed its annual shareholder meeting last week and has been pursuing an out‑of‑court deal with creditors, while Marriott terminated its licensing agreement with Sonder today, citing a default. I would have assumed default meant a bankruptcy filing, although it’s also possible that they missed a payment to Marriott.
- Sonder’s August 5, 2025 SEC 8-K filing shows that the entered into a Loan Agreement with Marriott that replaced some fees due under the license agreement.
- The loan included customary events of default, including if Sonder failed to raise at least $32.5M by Nov 15, 2025 (we haven’t hit that yet). The license was also amended to defer fees for up to 12 months, with the loan “rolling up” those amounts.
- The 8‑K lists cross‑defaults, but neither company has publicly said which clause was breached.
At the end of the second quarter they reported about 8,300 live units and 152 properties, with 86% occupancy and revenue per available room of $184. The company had $1.03 billion in assets against $1.53 billion in liabilities (driven largely by operating leases) and their SEC filing flagged “substantial doubt” about the company’s ability to continue as a going concern.
The company’s CEO stepped down in June. They’ve long had ‘WeWork‑like’ exposure to high fixed lease costs and variable demand, and they’ve been working to renegotiate and exit leases to cut cash burn. Their portfolio shrank 19% year-over-year in the second quarter.
Sonder is no longer on Marriott channels. You can’t earn or redeem Bonvoy points with going forward. Marriott says they’re contacting guests who have existing reservations made through them (re‑accommodation, cancellation, or other options).
It’s moot at this point- if Sonder employee posts on Reddit are correct, all North American employees will be laid off effective tomorrow, meaning all North American properties will be shut as of tomorrow.
This seems to correspond with Marriott emails to guests currently in residence at Sonder properties, directing them to check out today regardless of when their current stay was to end.
@DWT if that’s the case then a lot of cities are about to have an influx of new to market apartment rentals coming on line in the coming days so that’s a bright side to them going poof overnight and these owners needing a way to quickly pivot.