Sonder Hotel Chain Files for Bankruptcy, Leaving Guests Stranded
When Sonder Holdings, part of Marriott’s hotel chain, filed for bankruptcy, it left numerous guests around the world unexpectedly “homeless.” Many were abruptly evicted from their rental properties with little notice, creating what some described as a vacation “nightmare.”
The company filed for Chapter 7 bankruptcy on Monday, which means a liquidation of its U.S. operations. It also announced an “immediate wind down” of its activities following similar proceedings in other countries.
Just a day prior, Marriott had ended its licensing agreement with Sonder, following the company’s default on a contract from August 2024.
Steve McGraw, a retired technology executive, found himself in a difficult situation while staying at the Sonder Battery Park Apartments in New York City with his wife, daughter, and newborn granddaughter. They had booked a 17-day stay through Marriott but received notice on Monday that they had to vacate within a week.
“We had to leave by 9 a.m. the next day,” McGraw recalled, mentioning they ended up spending thousands more trying to find a new place. “It was very destructive. They treated us very badly.”
Another guest documented his own unfortunate experience in snowy Montreal. He shared his feelings on TikTok, stating, “I was trying to keep my cool as I dragged my luggage down the street after being asked to leave a hotel room I’d booked for three more nights.” This came after the abrupt split between Marriott and Sonder.
One travel influencer, using the handle reece.traveling, expressed frustration over the situation, saying, “I got kicked out of the hotel today… it’s an absolute nightmare.” He pointed out that the sudden suspension of Sonder’s license essentially left him without a place to stay.
Founded in 2014, Sonder once operated around 9,000 units in cities like Denver, San Francisco, Montreal, London, and Amsterdam. Marriott has assured that it will help accommodate the reservations of guests who booked through its platform.
In a statement, Marriott said, “Our immediate priority is to support our guests who are currently staying at Sonder properties and those who are booking in the future.” They emphasized their commitment to minimizing disruptions.
For many Sonder employees, the sudden news of layoffs and bankruptcy came as quite a shock, leaving them to handle upset customers while being kept in the dark about their company’s situation.
According to Sonder’s interim CEO, Janice Sears, the company faced severe financial difficulties and “long-term challenges” after aligning with Marriott in 2024. She expressed deep regret over the liquidation decision, attributing various unforeseen challenges to the failure of their integration with Marriott and its reservation systems.
“We’ve explored all possible alternatives to prevent this outcome but found ourselves with no other options,” she stated.
At one point, the company was seen as a strong competitor to Airbnb and went public in 2021, boasting a valuation of roughly $2.2 billion.
