(qlmbusinessnews.com . Fri 14th Nov, 2025) London, UK —
Sonder Shuts Down Operations Globally After Marriott Ends Lease Agreement Due to Default
The abrupt termination of the leasing agreement between Marriott International and Sonder, a company renowned for short-term rentals and serviced apartments, has plunged the latter into a dire situation, leading to the closure of its operations worldwide. This decision came a year after the partnership began, which permitted Sonder's listings to be available through Marriott's multiple booking channels.
Marriott attributes the separation to “Sonder's default,” inciting the cessation of their collaboration. The fallout has significantly impacted customers, with reports surfacing of individuals being locked out of their accommodations and seen navigating the streets in search of alternative lodging, as indicated by shared experiences on social media platforms.
As a consequence of this breakup, Sonder’s offerings have been withdrawn from Marriott’s booking facilities. Marriott has extended assistance to those who secured reservations via its own service, advising others who booked through different channels to seek refunds from their credit card companies.
Sonder, in a statement, detailed their financial difficulties, accentuated by intricate challenges in merging their booking systems and operations with those of Marriott International. This predicament has coerced Sonder towards seeking insolvency proceedings across the numerous regions it operates in.
“We are devastated to reach a point where a liquidation is the only viable path forward,” commented Janice Sears, Sonder's interim chief executive. She highlighted severe delays in integrating technological systems with Marriott, which inflated costs and led to a pronounced decline in revenue from their participation in the Marriott Bonvoy reservation framework.
The dissolution of this partnership has not only disconcerted customers but also employees. Rob Goodwin, formerly a front desk manager at Sonder The Merchant in New York City, relayed the chaos that ensued following the system error that precluded further bookings and the subsequent mandate for guests to vacate. His and his colleagues’ attempts to seek clarity from leadership were initially met with unresponsiveness, leaving them and the guests in a quandary.
Sonder's operational model, primarily reliant on self-service through digital access codes, faced criticism as guests were stranded without immediate assistance to access their accommodations or retrieve personal possessions.
This occurrence has cast a shadow over Marriott’s brand reputation, as expressed by disgruntled Sonder customers who felt betrayed by the perceived reliability of booking with a Marriott-affiliated entity.
Marriott International, with an extensive portfolio of over 9,700 properties across 143 countries, operates, franchises, and licenses a diverse range of lodging options. The fallout with Sonder marks a significant event, reflecting the complexities inherent in collaborations within the dynamic landscape of the hospitality industry.
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