Hotel guests were left homeless after the Marriott-backed rental company Sonder suddenly went bankrupt.
Sonder, which had offered apartment-style accommodations and boutique hotel stays, filed for Chapter 7 liquidation on Monday (November 11), forcing an immediate shutdown of its operations.
The company, once valued at over $1 billion, had entered into a partnership with Marriott less than a year ago, rebranding as Sonder by Marriott Bonvoy. But after Marriott terminated its licensing agreement on Sunday (November 10), Sonder was left with no choice but to liquidate.
The unexpected collapse and the termination of its partnership left travelers stranded, many of whom were in the middle of their stays.
Marriott and Sonder guests were ordered to vacate, some mid-stay, as staff learned they had lost their jobs the same day. Credit: Joe Raedle / Getty
Guests Forced to Vacate with Little Notice
With less than 24 hours' notice, guests were abruptly ordered to vacate their rooms, with some returning to find their belongings packed in plastic bags or left in hotel hallways.
One TikTok user, Avery from Edmonton, shared a clip of herself walking through the snow in Montreal after being told to leave with no prior warning.
“POV: Trying to maintain my composure while dragging my luggage down the street after Marriott Hotels & Sonder Hotels broke up with each other on a random Sunday and told us to get the f*** out of the hotel room we had booked for another three nights in Montreal," she wrote.
In a follow-up, Avery revealed that she was able to find a new hotel room for $220 a night, but the situation left her frustrated and upset.
Another traveler, Minjun, shared his ordeal in New York City, where he and his partner were kicked out of their Sonder hotel room mid-stay: “Our experience getting kicked out of our Sonder hotel in New York City that we had booked through Marriott with less than 24 hours notice while we were in the middle of our reservation," they said.
"Apparently, Sonder defaulted and Marriott terminated their partnership all of a sudden," she added.
Sudden Evictions Lead to Financial and Emotional Strain
For many guests, the experience was not just inconvenient but financially painful.
Steve McGraw, a retired tech executive who holds Elite status with Marriott, was staying at Sonder Battery Park Apartments in New York City when he received an email ordering him to vacate by 9AM the next day.
He and his family had been there for over a week, and they had to scramble to find alternative accommodations at great expense.
“We ended up spending several thousand dollars more to find a new place,” McGraw said, per Business Insider. “It was very, very disruptive. They treated us so poorly.”
As news of Sonder’s bankruptcy spread, both guests and employees were left reeling.
Marriott, which had been working with Sonder for several months, stated that it was working with visitors who booked through the site to minimize the impact.
“Marriott’s immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations,” the company statement read. “Marriott remains committed to minimizing disruption to guests’ travel plans.”
Guests have not received compensation from Sonder yet. Credit: Klaus Vedfelt/Getty Images
Sonder’s downfall comes after it had joined forces with Marriott in August 2024, hoping to boost its presence through Marriott’s Bonvoy reservation system. However, the two companies struggled with technology integration issues that led to "a sharp decline in revenue".
In a statement, Janice Sears, Sonder’s interim CEO, said: "We are devastated to reach a point where liquidation is the only viable path forward.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.
“These issues persisted and contributed to a substantial and material loss in working capital. We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets,” she added.
While Marriott has promised to help affected guests, it remains to be seen how many of Sonder’s customers will receive compensation or be able to find new bookings at Marriott properties.