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Just over a year ago, we wrote about Marriott's still-new partnership with Sonder. Well, it appears that the relationship has gone south in a rather dramatic fashion. On Sunday, Marriott announced it's immediately cutting ties with Sonder, despite the ink having barely dried on the new partnership.
Let's dig into all the details of this developing story.
Marriott Bonvoy Ends Partnership With Sonder
Sonder Apartments is a company that manages short-term rental properties around the world. In 2024, the company, which is publicly traded under the ticker symbol SOND, signed a deal with Marriott that immediately added 9,000 more rooms to Marriott's portfolio of brands. The company has been around since 2014, but it appears it has been experiencing extreme financial headwinds recently.
Most recently, the company rescheduled its annual shareholder meeting last week. However, hints of problems at the company go back to June, when the CEO stepped down. As a company, they've had to take on long-term leases for apartments they then sell back to Marriott members (and others). This creates a risky cash-flow environment, as you'll need a constant stream of short-term renters to cover those long-term liabilities.
Well, it seems the company breached its obligations in its agreement with Marriott, because as of November 9, 2025, the partnership is off. In an official press release, Marriott has announced it is terminating its licensing agreement with Sonder. Because of this, “Sonder is no longer affiliated with Marriott Bonvoy, and Sonder properties are not available for new bookings on Marriott's channels.”
As a result of the abrupt end of the Sonder partnership, Marriott Bonvoy members currently staying at Sonder properties are in a bit of a pickle. It appears that some guests are being evicted from their apartments mid-stay. For those with future bookings at Sonder, know that your stay will likely not happen as planned. If you have a stay planned at a Sonder property, reach out to Marriott customer service here for options.
What happens next for Sonder
Once valued at $2.2 billion, the company is now reportedly valued at just $6.8 million. It seems like the company is quickly spiraling toward some sort of bankruptcy — and that's not going to be helped by Marriott's abrupt departure from its licensing deal.
Marriott's room growth in 2025 is expected to be reduced by approximately 45 basis points to 4.5% growth. This metric is important for Wall Street hotel analysts to show healthy growth. Marriott may also attempt to recover some capital it provided Sonder as part of the deal.
It's a fast fall from grace for Sonder, who provided yet another brand option for Marriott Bonvoy members looking for an apartment option with limited Marriott benefits.
Bottom Line
Losing over 9,000 rooms in the Marriott portfolio may sting, especially in markets that didn't have much Marriott coverage. Even worse, those who have current or future stays at Sonder properties are grossly inconvenienced by the abrupt end to the partnership.
Marriott says that it's assisting inconvenienced guests due to the situation. If you're someone affected by the partnership ending, being proactive and reaching out to Marriott Customer Service may be the best option at this point in time.
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