Marriott Ends Partnership with Financially Struggling Sonder

Marriott International has announced that it has terminated its licensing agreement and 15-month partnership with Sonder Holdings, a global brand of design properties.

Marriott cited default under the agreement, meaning Sonder failed to meet several key contractual obligations, including necessary financing and maintaining timely payments.

Earlier in 2025, Marriott had extended financial support to Sonder through a loan to help the company raise funds and stabilize its operations. However, Sonder’s financial position continued to deteriorate amid widening losses, postponed shareholder meetings, and strained negotiations with creditors.

The partnership, launched in August 2024, had integrated more than 9,000 Sonder units (located across over 40 cities in Europe and the US) into the Marriott Bonvoy ecosystem. This allowed Marriott guests to earn and redeem Bonvoy points while enjoying Sonder’s apartment-style accommodations and boutique hotels.

With the termination, Sonder properties are no longer affiliated with Marriott, and future bookings through the website or the Bonvoy app have been suspended immediately.

Marriott stated it will assist guests with active or upcoming reservations. However, guests who booked via third-party channels must contact their respective agencies.

The announcement comes shortly after Marriott reported third-quarter 2025 revenue of $6.49 billion, a 3.7 percent increase year-over-year, driven by strong demand in international markets and continued growth in luxury segments.

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