Marriott cuts ties with lodging-rental company Sonder; guests left scrambling

Marriott International said Sunday (Nov. 9) that it has ended its licensing deal with lodging-rental company Sonder after Sonder defaulted on the agreement.

Sonder, known for its apartment-style hospitality offerings, had entered into the partnership with Marriott in 2024—news that had previously caused its stock price to surge.

As part of the agreement, Sonder strengthened its liquidity position by roughly $146 million, and more than 9,000 of its units were slated to be integrated into Marriott’s network by the close of 2024.

Following the termination, Marriott announced that Sonder is no longer part of the Marriott Bonvoy program, and its properties have been removed from Marriott’s booking platforms.

In a press release, Marriott said it now anticipates full-year net room growth of 4.5 per cent—slightly lower than its projection last week, when it expected growth to be close to five per cent.

Guests blindsided

Marriott guests with reservations at Sonder properties reported being caught off guard by the announcement.

Tim Schaefer, a New York-based blogger, told Business Insider that he had reserved two Sonder apartments in New York City for a total of 10 days, only to receive cancellation emails from both Sonder and Marriott roughly an hour before his Sunday check-in.

He told the outlet that he spent an hour on the phone with Marriott's help desk, trying to secure another hotel at the same rate for himself and his spouse, but was left on hold.

"We have a high loyalty status — Platinum Elite — with them. We are not happy," Schaefer said. 

Marriott announced on its website that customers who booked a Sonder property via its channels would receive a full refund. 

It also stated that those with upcoming reservations would be contacted by email about the "potential to rebook at another Marriott Bonvoy property."

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