New York City, November 13, 2025
Sonder Holdings Inc., known for its apartment-style accommodations, has abruptly ceased operations following Marriott International’s termination of their licensing agreement. This has left countless guests worldwide in search of alternative lodging accommodations. The decision comes after Sonder’s default on its agreement with Marriott, leading the company to initiate Chapter 7 bankruptcy proceedings. Guests currently at Sonder properties are being prioritized for assistance, while those with future reservations face uncertainty. This event marks a significant shift in Sonder’s operations and raises concerns about their financial stability.
New York City
Sonder Holdings Inc., a company specializing in apartment-style accommodations, has ceased operations following the termination of its licensing agreement with Marriott International. This abrupt closure has left numerous guests worldwide scrambling to find alternative lodging arrangements.
Marriott Terminates Agreement
On November 9, 2025, Marriott International announced the termination of its licensing agreement with Sonder due to a default by Sonder. As a result, Sonder properties are no longer affiliated with Marriott Bonvoy, and new bookings through Marriott’s channels are unavailable. Marriott is prioritizing support for guests currently staying at Sonder properties and those with upcoming reservations. Guests who booked through Marriott channels are being contacted directly to address their needs. Those who booked through third-party online travel agencies should reach out to those organizations. Marriott remains committed to minimizing disruption to guests’ travel plans.
Sonder’s Sudden Shutdown
Following the termination of the agreement, Sonder announced it would wind down operations immediately and expects to file for Chapter 7 bankruptcy to liquidate its U.S. assets. The company cited challenges in aligning its technology frameworks with Marriott’s systems, resulting in significant integration costs and a sharp decline in revenue.
Impact on Guests
Guests at Sonder properties have reported being informed of the closure with little notice, leading to confusion and inconvenience. Marriott is working to support affected travelers by assisting with alternative accommodations and refunds where applicable.
Background on Sonder
Founded in 2014, Sonder offered a blend of hotel and apartment-style accommodations in various cities worldwide. The company went public in 2022 but faced financial difficulties, including a significant decline in stock value. In August 2024, Sonder entered into a licensing agreement with Marriott to integrate its properties into Marriott’s portfolio, allowing customers to earn or redeem Marriott Bonvoy points. However, the partnership faced challenges, leading to its termination in November 2025.
Financial Status
As of November 13, 2025, Sonder Holdings Inc. (SOND) shares are trading at $0.17, reflecting a 5% increase from the previous close. The company’s market value has significantly declined from its peak valuation, indicating ongoing financial instability.
Frequently Asked Questions (FAQ)
What led to Sonder’s sudden closure?
Sonder ceased operations following the termination of its licensing agreement with Marriott International due to a default by Sonder. This led to the company’s decision to wind down operations and file for Chapter 7 bankruptcy to liquidate its U.S. assets.
How does this affect guests with existing reservations?
Guests who booked stays at Sonder properties through Marriott channels are being contacted directly to assist with alternative accommodations and refunds. Those who booked through third-party online travel agencies should reach out to those organizations for assistance. Marriott is committed to minimizing disruption to guests’ travel plans.
What was Sonder’s business model?
Sonder operated a blend of hotel and apartment-style accommodations in various cities worldwide, offering travelers a unique lodging experience. The company went public in 2022 but faced financial difficulties, including a significant decline in stock value.
What is the current stock status of Sonder Holdings Inc.?
As of November 13, 2025, Sonder Holdings Inc. (SOND) shares are trading at $0.17, reflecting a 5% increase from the previous close. The company’s market value has significantly declined from its peak valuation, indicating ongoing financial instability.
Key Features
| Feature | Details |
|---|---|
| Company Name | Sonder Holdings Inc. |
| Business Model | Apartment-style accommodations in various cities worldwide |
| Public Listing | Went public in 2022 |
| Partnership with Marriott | Entered into a licensing agreement in August 2024 |
| Termination of Agreement | Marriott terminated the agreement in November 2025 due to a default by Sonder |
| Current Stock Status | Shares trading at $0.17 as of November 13, 2025, reflecting a 5% increase from the previous close |
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Marriott Ends Partnership with Sonder, Causing Travel Disruptions
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