Short-term rentals company Sonder has filed for bankruptcy and will wind down its operations immediately, after Marriott International terminated its licensing agreement with the company.
Marriott said over the weekend that its agreement with Sonder had ended due to Sonder’s default. The companies first announced their partnership in 2024.
“We are devastated to reach a point where a liquidation is the only viable path forward,” said interim Sonder CEO Janice Sears.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system. These issues persisted and contributed to a substantial and material loss in working capital.”
Sonder plans to begin Chapter 7 liquidation proceedings for its United States business, as well as insolvency processes in the other countries it operates. It will wind down all its operations immediately, it said.
The company sent its guests emails on Sunday asking that they leave Sonder’s properties as soon as possible.
The Sonder-Marriott partnership had allowed members of Marriott’s Bonvoy loyalty program to book Sonder properties through Marriott’s platforms. Sonder customers were also able to earn and redeem Bonvoy points.
Sonder, which leases and manages properties for short-term rental stays, was founded in 2014. It had around 9,000 units worldwide before ending its operations.
It first began struggling financially in 2020 during the pandemic, according to co-founder and former CEO Francis Davidson, and its recovery faltered due to slowing urban foot traffic and rapidly rising interest rates. When it first listed on the NASDAQ in 2022, it raised around $400 million less than it had expected.
Sonder’s (NASDAQ: SOND) share price has fallen by 94.3% across 2025 to date. Its shares plummeted by 60% today to close at US$0.20.
Marriott’s (NASDAQ: MAR) share price closed at $290.47, down from its previous close at $291.16. Marriott’s market capitalisation is $77.95 billion.
Related content
