Sonder, a world short-term leases firm, out of the blue collapsed over the weekend after its bookings partnership with Marriott ended, leaving company worldwide with out lodging on brief discover.
A Sonder buyer in Montreal, the place the corporate was based, informed CNN that they acquired an e-mail on Sunday afternoon informing them that they wanted to vacate by the next day at 9 a.m., as a result of Sonder’s licensing take care of Marriott was “now not in impact.”
“I requested the workers if we might nonetheless keep till our checkout at 11 a.m., however the workers defined he had solely acquired directions to empty the constructing ASAP and that, sadly, we solely had 10 to fifteen minutes,” he informed CNN.
Marriott mentioned in a assertion on Sunday that its 20-year licensing settlement with Sonder was terminated as a consequence of its “default.”
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“Because of this, Sonder is now not affiliated with Marriott Bonvoy, and Sonder properties aren’t out there for brand spanking new bookings on Marriott’s channels,” the assertion continued.
Sonder, which was as soon as valued at $1.9 billion and touted as a rival to Airbnb, encountered monetary difficulties when the COVID-19 pandemic struck, leading to a decline in its market worth in 2022.
Its take care of Marriott, which was reached in August 2024, tethered over 9,000 stay Sonder properties to the resort chain’s portfolio, that means its short-term leases may very well be booked on Marriott’s platform.
The corporate introduced in its personal assertion on Monday that it had initiated liquidation proceedings as a consequence of its incapacity to enhance its monetary situation.
“In gentle of those unsuccessful efforts and the Firm’s monetary situation, the Board of Administrators made the troublesome choice to wind-down operations and pursue a court-supervised liquidation of the U.S. enterprise instantly,” the assertion reads.
“We’re devastated to achieve some extent the place a liquidation is the one viable path ahead,” Janice Sears, interim chief govt officer of Sonder, mentioned.
Sonder operated quite a few motels via long-term leases, leading to an asset-heavy mannequin, in accordance with CNBC.
Connie Yang, a traveller staying at a Sonder property in New York Metropolis, informed the outlet that she paid upfront for her keep from Nov. 7 to Nov. 17.
On Nov. 9, she was notified through e-mail that she had to take a look at of the resort by 9 a.m. the next day.
“Your entire constructing was requested to vacate,” she mentioned.
“My neighbour helps her husband via most cancers remedy, and so they have paid for the month. It’s past comprehension.”
She additionally mentioned a few of Sonder’s on-site workers had been crying as “they knew nothing.”
On Monday morning, “folks had been scrambling to go away earlier than they locked down the constructing,” she mentioned.
Movies posted by folks saying they had been affected by Sonder’s sudden collapse have additionally been circulating on-line.
One couple, who share the journey TikTok account minjunandkevin, posted a three-part collection recounting their expertise of being compelled out of their New York Metropolis resort midway via a keep that they had pre-paid for in full, which they are saying left them scrambling to seek out different lodging because of the excessive value of motels within the metropolis.
Sonder was based in 2014 by McGill College college students Francis Davidson and Lucas Pellan. It later relocated its headquarters to San Francisco. Earlier than declaring chapter, Sonder operated in additional than 40 cities throughout 10 international locations.
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