Guests Blindsided After Sudden Split Between Marriott and Sonder
In a stunning development shaking the hospitality industry, Marriott International has abruptly ended its licensing partnership with Sonder, leaving hundreds of guests stranded and uncertain about their reservations. The breakup, confirmed by both companies on November 10, 2025, follows Sonder’s financial collapse and subsequent move to file for bankruptcy protection in the United States.
The split has sparked frustration among travelers who had booked accommodations under the Marriott brand at Sonder hotels, only to receive last-minute cancellation notices and requests to vacate their rooms.
According to Business Insider, Marriott cited “Sonder’s default” as the reason for terminating the agreement, which had only been signed in August 2024. The short-lived collaboration was intended to expand Marriott’s presence in the urban rental and boutique hospitality segment through Sonder’s apartment-style lodging network.
However, the fallout has quickly turned into a public relations headache for both brands.
Guests Left Without Rooms Amid the Sonder Collapse
Several guests have described being caught completely off guard. Tim Schaefer, a New York travel blogger, said he had booked two Sonder hotels through Marriott’s platform for a 10-day stay in Manhattan but received a cancellation email less than an hour before check-in.
“We have a high loyalty status — Platinum Elite — with Marriott. We are not happy,” Schaefer told Business Insider, noting that he was unable to find another room at a comparable rate.
Similarly, David Klingbeil, an NYU marketing instructor, said he was halfway through his stay at a Sonder Flatiron property when he was instructed via email to vacate the room by 8 a.m. the next morning.
“I thought it was a scam email,” Klingbeil said. “But when I saw the official announcements, I realized it was real. I had to rebook at a much higher rate.”
Both guests expressed disappointment with how Marriott and Sonder handled communication during the crisis.
Sonder Files for Bankruptcy and Begins Liquidation Process
A day after Marriott’s termination announcement, Sonder Hotels confirmed that it had filed for bankruptcy protection and would liquidate its U.S. operations. The company also plans to initiate insolvency proceedings internationally, affecting properties in Europe, Canada, and the Middle East.
In a statement, Janice Sears, Sonder’s interim CEO, said:
“We are devastated to reach a point where liquidation is the only viable path forward. Substantial delays and financial setbacks related to the Marriott partnership contributed to this outcome.”
At its peak, Sonder operated more than 9,400 units worldwide and was once valued at over $1.3 billion after going public in 2021 through a SPAC merger. However, mounting debt, high interest rates, and slow recovery in urban travel severely impacted its liquidity.
Marriott Promises Refunds — But Guest Frustration Persists
In response to widespread complaints, Marriott issued a statement assuring customers that all bookings made through its official channels for Sonder hotels would be fully refunded. The company also said affected guests would be contacted via email regarding “the potential to rebook at another Marriott Bonvoy property.”
Despite this, many travelers remain upset, citing the abrupt cancellations and lack of immediate support. Some Marriott Bonvoy elite members have threatened to switch hotel loyalty programs, arguing that the company should have better anticipated Sonder’s financial distress.
Sonder’s stock price, which has fallen by 87% in the past year, now trades at a market cap of just $6.8 million, signaling near-total collapse.
Industry Impact: Sonder’s Fall and the Future of Hybrid Hospitality
The sonder hotels model — blending short-term apartment rentals with hotel-style amenities — was once hailed as the future of flexible urban lodging. Sonder’s tech-driven operations and minimalist design appealed to younger, digital-first travelers.
However, analysts note that the Marriott–Sonder breakup exposes the fragility of such partnerships, especially when smaller operators struggle to maintain financial stability in a capital-intensive market.
Hospitality expert David Eisen commented that while Sonder’s bankruptcy is unfortunate, it underscores the challenges faced by hybrid hospitality startups competing with established giants like Marriott, Hilton, and Airbnb.
“This is a reality check for investors. Tech alone can’t offset the costs of real estate, labor, and operations in the hotel industry,” Eisen said.
What’s Next for Sonder and Its Guests
As Sonder Hotels begins winding down, industry observers expect Marriott to refocus on direct brand expansion rather than third-party licensing. Guests affected by the sudden cancellations have been advised to monitor official Marriott and Sonder websites for refund updates and rebooking options.
The collapse marks the end of a partnership that once promised innovation in the hospitality sector — but ultimately became a cautionary tale about overextension and unstable financing.
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