Sonder Files for Bankruptcy as Marriott Terminates Partnership

BREAKING: Hospitality company Sonder has officially filed for bankruptcy following the abrupt termination of its licensing agreement with Marriott International. The San Francisco firm filed for Chapter 7 liquidation in federal bankruptcy court in Delaware on Friday, marking a significant collapse in the short-term rental market.

This shocking move comes just days after Marriott announced it would no longer partner with Sonder, a decision that has left many guests scrambling for refunds. Marriott is now advising affected guests to contact their credit card companies for refunds, as all Sonder properties are no longer available for booking through Marriott’s channels.

In its legal filings, Sonder reported estimated assets and liabilities both between $1 billion and $10 billion. The company stated that it would immediately wind down operations in the U.S. and initiate insolvency proceedings in other countries where it operates.

Sonder’s bankruptcy is a dramatic fall for a company once valued at over $1 billion, which offered a platform for travelers to book stays in over 35 cities worldwide. The company cited “severe financial constraints” and challenges integrating its systems with Marriott as critical factors leading to its downfall.

The termination of the partnership, which began in August 2024, has led to widespread chaos for guests, many of whom were blindsided by the sudden announcement. Sonder had rebranded as “Sonder by Marriott Bonvoy” during the partnership, but just days ago, Marriott declared Sonder’s default, effectively severing ties.

In a statement, Sonder expressed regret over its inability to secure a viable financial restructuring, despite exploring all options, including potential sales.

This story is developing. Stay tuned for the latest updates as more information becomes available.