Marriott International inks licensing deal with Sonder

Marriott International has inked a long-term licensing agreement with Sonder Holdings – a move that will expand the hotelier’s portfolio.

The partnership will reportedly add 9,000 rooms to Marriott's portfolio by the end of the year and an additional 1,500 rooms to its pipeline.

The newly-added properties will operate under the "Sonder by Marriott Bonvoy" collection.

In 2024, the net room growth for Marriott International is projected at 6%-6.5%. The Sonder pipeline rooms are expected to join Marriott's system in the coming years.

The deal also stipulates that Marriott will get a royalty fee depending on a percentage of Sonder's gross room revenues.

Boutique & apartment-style accommodations

Sonder, which debuted in 2024, operates apartment-style accommodations and boutique hotels, situated in cities across North America, Europe, and the Middle East.

The company's properties, which are designed to appeal to younger demographics, incorporate a digital-first operating model.

“We are excited about the addition of Sonder's portfolio to our system, which will expand our portfolio of longer-stay accommodations in key markets around the world,” stated Marriott International M&A, business development and real estate global officer Tim Grisius. 

“Marriott has long believed in providing the right product at the right price point for all trip purposes and generations of travellers. With the planned addition of Sonder by Marriott Bonvoy, we will be able to provide guests seeking apartment-style urban accommodations with even more options in the Marriott Bonvoy portfolio.”

The move will allow Marriott Bonvoy members to earn and redeem points at nearly 200 Sonder by Marriott Bonvoy properties, starting later this year.

The full integration is expected to complement Sonder’s existing technology, which powers end-to-end digital guest journeys and operating efficiencies.

Sonder is expecting substantial cost savings through an improved distribution channel mix and preferred distribution channel rates

“We're delighted about our strategic agreement with Marriott. Benefitting from the extensive distribution, loyalty program and sales capabilities of a global hospitality leader will help us to prioritize our core value drivers, including our unique guest experience, while unlocking significant opportunities for increased revenue and cost efficiency,” stated Francis Davidson, co-founder and CEO of Sonder.

The full integration of Sonder properties into Marriott's digital platforms, including Marriott.com and the Marriott Bonvoy app, is anticipated next year.

The announcement comes following Marriott International's celebration of its 9,000th property opening, the St Regis Longboat Key Resort in Florida.

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