Sonder declares bankruptcy, kicks out guests, cancels reservations

Travel plans were upended after Sonder unexpectedly shut down.

The company announced this week that it was “winding down operations” and would be filing for bankruptcy, The New York Times reported.

It filed Chapter 7 bankruptcy and was liquidating the business, blaming “severe financial constraints arising from, among other things, prolonged challenges in the integration of the Company’s systems and booking arrangements with Marriott International,” Sonder said in a news release.

The company, which was a competitor to Airbnb, was valued at more than $1 billion in 2019, went public in 2022 and was licensed by Marriott International in 2024, and was renamed Sonder by Marriott Bonvoy.

Sonder leased short-term rentals and posted them on Marriott’s websites instead of individual owners posting their properties on platforms. Rewards members could also use their benefits to stay with Sonder.

The company had 9,000 furnished apartments and 40 boutique hotels in its portfolio, CNN reported.

But having the Marriott powerhouse linked to the company wasn’t enough and the two parted ways when Marriott said Sonder defaulted on its agreement, the Times said.

Marriott said it will help guests who have current and upcoming Sonder reservations. But guests said that they were given little warning and when they called the 800 number, it was not in service.

Joan Lee had booked an apartment in Rome over Christmas through Sonder. It was canceled with Lee telling the Times that Marriott did not offer “any real solution” and that while she got her money back, the cost of a replacement location was double what she had booked on Sonder and Marriott did not give a discount or credit to compensate for the change.

“It was disappointing,” Lee told the newspaper. “My husband is already a little iffy on Airbnbs, and so what we liked about this was that it had the Marriott brand attached to it.”

Marriott said it “is in communication with guests who have existing reservations at Sonder properties booked on Marriott.com and through other Marriott channels, and we are in contact with third-party platforms to communicate with guests who booked on other channels,” a spokesperson told CNN.

Patrick D’Aoust said he had 15 minutes to get out of his room in Montréal, Canada, CNN reported.

“I asked the staff if we could still stay until our checkout at 11 am, but the staff explained he had only received instructions to empty the building ASAP and that unfortunately we only had 10 to 15 minutes,” D’Aoust said.