Sonder, a worldwide short-term leases firm, instantly collapsed over the weekend after its bookings partnership with Marriott ended, leaving company worldwide with out lodging on quick discover.
A Sonder buyer in Montreal, the place the corporate was based, informed CNN that they acquired an electronic mail on Sunday afternoon informing them that they needed to vacate by the next day at 9 a.m., as a result of Sonder’s licensing take care of Marriott was “now not in impact.”
“I requested the employees if we might nonetheless keep till our checkout at 11 a.m., however the employees defined he had solely acquired directions to empty the constructing ASAP and that, sadly, we solely had 10 to fifteen minutes,” he informed CNN.
Marriott stated in a statement on Sunday that its 20-year licensing settlement with Sonder was terminated because of its “default.”
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“Because of this, Sonder is now not affiliated with Marriott Bonvoy, and Sonder properties usually are not obtainable for brand new bookings on Marriott’s channels,” the assertion continued.
Sonder, which was once valued at $1.9 billion and touted as a rival to Airbnb, encountered monetary difficulties when the COVID-19 pandemic struck, leading to a decline in its market worth in 2022.
Its deal with Marriott, which was reached in August 2024, tethered over 9,000 stay Sonder properties to the lodge chain’s portfolio, which means its short-term leases might be booked on Marriott’s platform.
The corporate introduced in its personal statement on Monday that it had initiated liquidation proceedings because of its lack of ability to enhance its monetary situation.
“In mild of those unsuccessful efforts and the Firm’s monetary situation, the Board of Administrators made the troublesome resolution to wind-down operations and pursue a court-supervised liquidation of the U.S. enterprise instantly,” the assertion reads.
“We’re devastated to achieve a degree the place a liquidation is the one viable path ahead,” Janice Sears, interim chief government officer of Sonder, stated.
Sonder operated quite a few resorts by way of long-term leases, leading to an asset-heavy mannequin, in response to CNBC.
Connie Yang, a traveller staying at a Sonder property in New York Metropolis, informed the outlet that she paid prematurely for her keep from Nov. 7 to Nov. 17.
On Nov. 9, she was notified through electronic mail that she had to take a look at of the lodge by 9 a.m. the next day.
“The whole constructing was requested to vacate,” she stated.
“My neighbour helps her husband by way of most cancers remedy, they usually have paid for the month. It’s past comprehension.”
She additionally stated a few of Sonder’s on-site employees have been crying as “they knew nothing.”
On Monday morning, “individuals have been scrambling to go away earlier than they locked down the constructing,” she stated.
Movies posted by individuals saying they have been affected by Sonder’s sudden collapse have additionally been circulating on-line.
One couple, who share the journey TikTok account minjunandkevin, posted a three-part sequence recounting their expertise of being compelled out of their New York Metropolis lodge midway by way of a keep that they had pre-paid for in full, which they are saying left them scrambling to seek out various lodging because of the excessive price of resorts within the metropolis.
Sonder was based in 2014 by McGill College college students Francis Davidson and Lucas Pellan. It later relocated its headquarters to San Francisco. Earlier than declaring chapter, Sonder operated in additional than 40 cities throughout 10 nations.
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