Hotel company Sonder will file for bankruptcy after breaking relations with Marriott and guests complain about the cancellation of their reservations
The Sonder hotel and apartment chain, which signed a franchise agreement with Marriott in 2024, announced this Monday that it will complete the immediate cessation of operations and that it will liquidate its assets under the United States Bankruptcy Law. This was reported by the company in a statement in which it also confirmed that it intends to initiate insolvency proceedings in the countries where it operates. The dissemination of the note occurred after guests complained on social networks that their reservations had been cancelled.
“Are you kidding me Marriott? Did they cancel their relationship with Sonder with active bookings without even setting an end date? Where is my refund for my prepaid reservation in Los Angeles?” one customer complained in a message posted to their X account. “I received a message from my Airbnb from Sonder notifying me less than 24 hours in advance that he had to vacate the property because his contract with Marriott had been terminated. I was lucky because my trip ended today… But what do the others who had already paid and whose stay was interrupted?” wrote another user on the same social network.
“Sonder has faced serious financial difficulties arising, among other things, from the prolonged problems in the integration of its systems and reservation agreements with Marriott International,” the company indicated in the document before reporting that Marriott announced the termination of the contract which they had signed on Sunday, November 9. The company has assured that it made “exhaustive efforts” to evaluate all financing alternatives and other strategic operations without success.
“The company contacted numerous strategic and financial partners, but finally failed to complete a viable transaction for the continuity of its business and operations nor to obtain additional liquidity,” it admitted. “Given these fruitless efforts and the financial situation of the company, the Board of Directors made the difficult decision to cease operations and immediately initiate a liquidation process,” the company continued before thanking the employees for their dedication.
“We are deeply saddened to have reached a point where liquidation is the only viable option,” said Janice Sears, interim CEO of Sonder. “Unfortunately, our integration with Marriott International was significantly delayed due to unforeseen difficulties to align our technology platforms, resulting in significant and unexpected integration costs as well as a sharp decline in revenue from Sonder’s participation in Marriott’s Bonvoy reservation system. These problems persisted and contributed to a substantial loss of working capital“.
Marriott announced its decision to terminate the contract with Sonder in a statement this Sunday. “Marriot International announced today [este domingo] that its licensing agreement with Sonder Holdings Inc. has become void due to Sonder’s failure to pay. Consequently, Sonder is no longer affiliated with Marriott Bonvoy and Sonder properties. are not available for new reservations through Marriott channels,” the chain stated.
The hotel company has also stated that its priority is guests and that it will contact those who booked through its channels. Those who have booked through travel agencies and online platforms will have to contact them directly. “Marriott remains committed to minimize any inconvenience to travel plans of its guests,” he concluded.
