The abrupt collapse of boutique accommodation provider Sonder has left travelers stranded and the hospitality industry reeling. Sonder Holdings Inc. filed for Chapter 7 bankruptcy protection this week, initiating a full liquidation of its U.S. business and forcing immediate closures of its properties.
The Beginning of the End: A Failed Partnership
The company's downfall was accelerated on Sunday, November 10, 2025, when Marriott International terminated its licensing agreement with Sonder. This deal, originally signed in August 2024, was intended to be a lifeline, bringing in $146 million in additional liquidity. However, the partnership quickly soured due to insurmountable technical challenges.
In a public statement, Sonder revealed the core issue: prolonged challenges in integrating the company's systems and booking arrangements with Marriott International. This technological failure led to massive, unanticipated costs and a devastating drop in revenue, ultimately making the business unsustainable.
From Canadian Startup to Global Failure
Sonder's story began with promise. The company was founded in Montreal in 2014 by Francis Davidson, Lucas Pellan, and Martin Picard before relocating its headquarters to San Francisco two years later. It grew to become a significant competitor to Airbnb, operating furnished apartments in 37 cities across nine countries, and was particularly popular with remote workers seeking higher-quality, home-like accommodations.
Janice Sears, the interim CEO of Sonder, expressed the company's devastation in a statement. We are devastated to reach a point where a liquidation is the only viable path forward, she said, directly citing the failed Marriott integration as the primary cause.
Travel Chaos and Customer Outrage
The real-world impact has been chaos for guests. People who booked stays through Sonder found themselves with cancelled reservations and little to no notice, sparking a wave of frustration on social media.
One customer on social platform X shared an email notification, writing, Kicking out all residents from a @Marriott hotel with less than 24 (hours) notice is crazy. No apologies, back up arrangement, or anything.
Another traveler highlighted the financial sting, stating, @Marriott really scored a huge own goal with the PR around Sonder. How to alienate @MarriottBonvoy members in one easy lesson. Booked months ago and now about $1500 to rebook other hotels.
While Marriott has stated its priority is supporting guests who booked directly through its channels, those who booked via Sonder or third-party sites have been left to fend for themselves. The company confirmed that Sonder properties are no longer available for new bookings on Marriott channels and that it is working to minimize disruption for its direct customers.
With its U.S. operations in liquidation, Sonder has indicated that updates regarding its international properties will be provided following the formal bankruptcy filing this week.
