Archive · 12 Nov 2025
Sonder Files Bankruptcy, Evicting Guests After Marriott Deal Termination
Imagine a company called Sonder that rented out apartments like a hotel and had a deal with Marriott.
Suddenly, Sonder had money problems because they didn't pay Marriott as they were supposed to.
Because of this, Marriott ended their deal.
This caused Sonder to close down right away.
People who had booked rooms through Sonder were told they had to leave immediately, even if they were already staying there.
Some guests had to spend a lot more money to find new places to stay, and they were very upset.
Sonder, which used to be worth a lot of money, is now going out of business completely.
Sonder, a hotel rental company and former partner of Marriott, has announced an immediate wind-down of operations and filed for Chapter 7 bankruptcy.
Marriott terminated its licensing agreement with Sonder on Sunday after the company defaulted on its August 2024 agreement.
Guests checked into Sonder accommodations have reportedly been evicted mid-stay, facing unexpected expenses and disruptions.
Sonder, which once had a valuation of $1 billion and managed 10,500 rooms globally, is now undergoing liquidation.
Affected guests have expressed distress and frustration over the abrupt closure and the need to find alternative accommodations at short notice.
- Who
- Sonder, a hotel rental company, and its guests.
- What
- Sonder announced an immediate wind-down of operations and filed for Chapter 7 bankruptcy, leading to guests being evicted from their accommodations after Marriott terminated its licensing deal.
- When
- Sonder announced its operations wind-down and filed for bankruptcy on Monday, November 10, 2025. Marriott terminated its licensing agreement on Sunday.
- Where
- Properties operated by Sonder worldwide, including locations in Montreal.
- Why
- Sonder defaulted on its August 2024 agreement with Marriott, leading to the termination of their licensing deal and the company's subsequent bankruptcy and closure.
Sonder's Stance
Marriott's Stance
Reason for Partnership Failure
Sonder's Stance
Sonder announced an 'immediate wind-down of operations' and filed for Chapter 7 bankruptcy, indicating financial distress that led to the termination of its licensing deal.
Marriott's Stance
Marriott terminated its licensing agreement with Sonder after the company defaulted on its August 2024 agreement.
Impact on Guests
Sonder's Stance
Guests checked into Sonder accommodations were reportedly left stranded and evicted mid-stay, leading to unexpected expenses and disruption.
Marriott's Stance
Marriott's actions led to the termination of the agreement, directly impacting guests who had booked through Sonder.
- Company Filing Bankruptcy
- Sonder
- Bankruptcy Type
- Chapter 7 liquidation
- Announcement of Wind-down
- Monday, November 10, 2025
- Marriott's Termination of Agreement
- Sunday
- Default Date
- August 2024
- Previous Valuation
- $1 billion
- Number of Leased Rooms
- 10,500
