Marriott Ends Sonder Partnership After Default, Firm to Liquidate

Marriott International announced Sunday that it has terminated its licensing agreement with short-term rental operator Sonder Holdings due to a default by the company. Marriott stated that Sonder “is no longer affiliated with Marriott Bonvoy” and that its properties are no longer bookable through Marriott’s distribution channels.

A day later, Sonder confirmed plans to “immediately” wind down operations and initiate a Chapter 7 liquidation of its U.S. business, citing “severe financial constraints” tied to prolonged difficulties integrating its systems and booking processes with Marriott. Details regarding the liquidation of Sonder’s non-U.S. operations will be announced separately.

The two companies entered into a “long-term strategic licensing agreement” in August 2024, bringing more than 9,000 Sonder units into the Marriott portfolio by year’s end, with another 1,500 expected to follow. Sonder’s apartment-style accommodations and boutique hotels were set to be distributed through Marriott’s website, mobile app and Bonvoy loyalty program under the Sonder by Marriott Bonvoy brand.

The partnership was widely viewed as a lifeline for Sonder, which had faced multiple Nasdaq delisting warnings and significant workforce reductions. But according to interim CEO Janice Sears, the integration challenges proved insurmountable.

“Unexpected delays aligning our technology frameworks led to significant, unanticipated costs and a sharp decline in revenue from our participation in Marriott’s Bonvoy system,” Sears said. “We explored every viable alternative, but we have no choice other than to proceed with an immediate wind-down and liquidation.”

Industry executives reacted quickly on LinkedIn. Louis-Hippolyte Bouchayer of SAP Concur noted, “Marriott wanted reach. Sonder needed credibility. Then the math stopped working.” Guestcentric CEO Pedro Colaco added that every major strategic partnership “hides a dependency risk.”

Sonder’s Q2 2025 results showed revenue down 11% year over year to $147 million, with bookable nights falling 21% to 798,000. The company reported an $44.5 million net loss—an increase of 236%—and had 8,300 live units as of June 30, 2025.

Marriott said it will contact guests who booked Sonder accommodations through its channels to assist with reservation needs.

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Marriott Ends Sonder Partnership After Default, Firm to Liquidate

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