Sonder Liquidates US Assets as Bankruptcy Ends Marriott Ties

Sonder Holdings, the short-term rentals and boutique hotel operator, has announced plans to file for bankruptcy and immediately begin liquidating its US operations.

The decision comes just one day after Marriott International terminated its licensing agreement with Sonder, which had allowed the company’s properties to be listed and booked through Marriott’s Bonvoy platform since August 2024.

The loss of this crucial partnership removed one of Sonder’s main distribution channels, leaving the company without a stable source of bookings.

Sonder’s challenges began years earlier, as the COVID-19 pandemic decimated travel demand. Additionally, a 2022 SPAC merger led to rising costs and heavy cash burn, while technology integration issues with Marriott created further financial strain.

With failed attempts to stabilize and no path to recovery, Sonder now plans to file for Chapter 7 bankruptcy in the US, meaning it will liquidate all assets and wind down its business entirely. It is also expected to start similar insolvency processes in other countries.

Guests staying at Sonder locations were informed abruptly that they had to vacate their accommodations, in some cases within hours, sparking frustration and distress. Employees were likewise caught by surprise, as operations halted across North America and Europe.

Sonder operated in more than 40 cities globally, positioning itself as a hybrid between traditional hotels and Airbnb-style rentals, appealing to leisure and long-stay travelers.

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