Marriott Expands with 9,000 Rooms via Sonder Licensing Deal

Marriott International, Inc. has announced a major expansion of its portfolio with a new long-term licensing agreement with Sonder Holdings Inc. This deal will introduce over 9,000 rooms under the new “Sonder by Marriott Bonvoy” collection, significantly enhancing Marriott’s offerings in the extended-stay and apartment-style accommodation sectors.

In addition to the immediate 9,000-room addition, Sonder’s pipeline includes plans for 1,500 more rooms in apartment-style hotels across various cities. This strategic expansion comes as Marriott records a record-breaking development pace over the past two years and anticipates that its pipeline will drive increased profitability in the coming year.

The agreement stipulates that Marriott will receive a royalty fee based on a percentage of the hotels’ gross room revenues. Marriott expects its full-year 2024 net room growth to reach between 6 to 6.5 percent, following the recent milestone of opening its 9,000th hotel.

Founded in 2014, Sonder offers apartment-style accommodations and boutique hotels in major cities across North America, Europe, and the Middle East. Starting later this year, Marriott Bonvoy members will have the opportunity to earn and redeem points at Sonder’s approximately 200 properties.

Tim Grisius, Global Officer of M&A, Business Development, and Real Estate at Marriott International, commented on the new partnership: “We are excited about the addition of Sonder’s portfolio to our system, which will expand our range of longer-stay accommodations in key markets around the world. Marriott has long been committed to offering the right product at the right price point for all types of travelers.”

Grisius added, “With the planned addition of Sonder by Marriott Bonvoy, we will be able to offer guests seeking apartment-style urban accommodations even more options within the Marriott Bonvoy portfolio.”