Property rentals firm Sonder has declared bankruptcy, leading to guests being ejected from their accommodations globally, often mid-stay. The sudden collapse follows the termination of a key leasing agreement with hotel giant Marriott International.
This development has left numerous travelers stranded, with many reporting difficulties accessing their belongings or securing alternative lodging. The company, once seen as a significant competitor to Airbnb, operated thousands of rooms across more than 40 cities.
Key Takeaways
- Sonder, a short-term rental firm, has filed for insolvency.
- Guests were unexpectedly ejected from properties worldwide.
- Marriott International ended its partnership with Sonder due to default.
- Many customers booked with Sonder due to its association with Marriott.
- All Sonder properties in over 40 cities are now closing.
Marriott Partnership Ends Abruptly
The immediate cause of Sonder's bankruptcy appears to be the termination of its leasing agreement with Marriott International. This partnership, established just a year ago, allowed Sonder's serviced apartments to be booked through Marriott's extensive booking platforms and app.
Marriott stated that it ended the agreement due to "Sonder's default." This decision had immediate and severe consequences for Sonder's operations worldwide.
Fact Check
Sonder operated thousands of rooms in over 40 cities globally. Its business model focused on premium serviced apartments, aiming to rival traditional hotels and platforms like Airbnb.
Challenges in Integration Cited by Sonder
Sonder's interim chief executive, Janice Sears, issued a statement on the company's website. She attributed the firm's financial difficulties, in part, to "prolonged challenges in the integration of the company's systems and booking arrangements with Marriott International."
According to Sears, the technological alignment between the two companies faced unexpected delays. These delays resulted in significant costs for Sonder. She also noted a sharp decline in revenue that arose from Sonder's participation in Marriott's Bonvoy reservation system.
"We are devastated to reach a point where a liquidation is the only viable path forward," said Janice Sears, Sonder's interim chief executive. "Our integration with Marriott was substantially delayed due to unexpected challenges in aligning our technology frameworks, which resulted in significant costs."
Guests Stranded and Frustrated
Reports from numerous guests highlight the chaotic aftermath of Sonder's collapse. Many customers shared their experiences online, describing how they were suddenly locked out of their rooms.
One user on Reddit recounted being unable to re-enter their room to retrieve belongings. Others posted images of themselves carrying luggage through city streets, urgently searching for new accommodation.
Booking Complications
Sonder properties often rely on door codes for guest entry, operating without on-site staff. This setup complicated matters for guests whose codes stopped working, as immediate assistance was often unavailable.
Lack of Communication and Support
Several affected individuals reported receiving no prior communication about their cancelled reservations. They also found it difficult to contact Sonder directly for assistance or refunds.
One customer expressed significant worry over their cancelled booking, noting the complete lack of online contact options for the firm.
- Guests reported sudden lockouts.
- Many could not retrieve personal belongings.
- Lack of advance notice for cancellations.
- Difficulty contacting Sonder for support.
Marriott's Response and Customer Impact
Marriott International has stated that Sonder rooms can no longer be booked through its platforms. For guests who booked directly via Marriott's own systems, the hotel giant indicated it was assisting them.
However, Marriott advised those who booked through third-party platforms to seek refunds directly from their credit card issuers. Marriott clarified on its website that it did not process customer card payments for Sonder bookings itself, but would coordinate with relevant parties to facilitate refunds.
Marriott's Global Reach
Marriott International operates over 9,700 properties under 30 brands across 143 countries. Its business model includes operating hotels, as well as franchising and licensing various lodging properties.
Feeling of Betrayal Among Customers
Many customers expressed a sense of betrayal. They explained that their primary reason for choosing Sonder was the perceived reliability and backing of the well-known Marriott brand.
One user on X, formerly Twitter, criticized Marriott's handling of the situation, stating that the company had been "useless." This individual also claimed Marriott attempted to charge hundreds of dollars per night to rebook them at one of its Courtyard brand hotels.
The sudden collapse of Sonder and the subsequent disruption for travelers underscore the risks involved in the rapidly evolving short-term rental market. The incident also highlights the complexities of partnerships between traditional hospitality giants and newer, technology-driven lodging providers.
