Sonder Marriott Partnership Ends in Abrupt Termination

On November 11, 2025, the hospitality industry was rocked by the sudden termination of the licensing agreement between Sonder Holdings Inc. and Marriott International. This unexpected development has left guests stranded, raised questions about the future of Sonder, and sent shockwaves through the hotel sector.

Background of the Partnership

In August 2024, Sonder and Marriott announced a licensing deal that would allow Sonder’s inventory to be bookable through Marriott’s channels. The agreement was set to last for 20 years, with Sonder reportedly paying $15 million in key money to Marriott. This partnership was seen as a strategic move for both companies, with Sonder gaining access to Marriott’s extensive customer base and distribution network, while Marriott could offer its guests a wider range of accommodation options.

The Abrupt Termination

However, on November 9, 2025, Marriott announced the immediate termination of its licensing agreement with Sonder, citing a default by the apartment-style hospitality brand. This decision caught many off guard, including guests who had bookings with Sonder properties. The sudden end of the partnership has forced Sonder to shut down its operations, leaving guests scrambling for alternative accommodations.

Implications for Sonder

The termination of the agreement with Marriott has had dire consequences for Sonder. The company, once hailed as a billion-dollar startup, is now facing liquidation in the U.S. as it struggles to recover from the loss of its key partnership. Sonder’s abrupt closure has also raised concerns about the future of the short-term rental industry and the impact of such high-profile failures on consumer trust.

Reactions from Guests and Industry Experts

Guests who had bookings with Sonder properties have been left in a lurch, with many recounting last-minute cancellations and sudden evictions. Industry experts have expressed surprise at the swift unraveling of the partnership between Sonder and Marriott, with some speculating about the underlying reasons for the default that led to the termination.

Financial Fallout

Following the termination of the agreement, Sonder Holdings Inc. has announced its intention to file for Chapter 7 bankruptcy. The company’s stock has plummeted, and its future prospects are uncertain as it navigates the fallout from the failed partnership with Marriott.

Looking Ahead

The abrupt end of the Sonder-Marriott partnership serves as a cautionary tale for companies in the hospitality industry. It highlights the importance of robust financial planning, clear communication, and risk management in partnerships of this scale. As Sonder grapples with the fallout from the termination, the industry as a whole will be watching closely to see how it navigates this challenging period.