Marriott Ends Licensing Agreement With Sonder After Default

Marriott International, Inc. has announced the termination of its licensing agreement with Sonder Holdings Inc., ending their partnership just over a year after it began. The move follows Sonder’s reported default under the agreement.

As a result, Sonder’s properties and rooms will no longer appear within Marriott’s booking system or Marriott Bonvoy portfolio. The termination will slightly impact Marriott’s overall performance metrics, reducing its projected 2025 net room growth by 0.5 percentage points—from 5% to 4.5% total growth.

The two companies initially signed a long-term agreement in August 2024, bringing more than 9,000 Sonder-operated rooms and 1,500 under development into Marriott’s system under the Sonder by Marriott Bonvoy collection. Sonder’s portfolio includes apartment-style accommodations in major global cities.

Under the deal, Marriott was to receive royalties based on a percentage of gross room revenue from participating Sonder properties. However, Sonder’s financial struggles appear to have influenced the outcome. In its second-quarter 2025 earnings report, the company posted a net loss of USD 44.5 million and an adjusted EBITDA of just USD 2.6 million, with revenue declining 11% year-over-year to USD 147.1 million.

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