Patrick M. D’Aoust likely did not foresee that his anniversary getaway would conclude prematurely, nor could he have anticipated having only 15 minutes to vacate his accommodations. Unfortunately, the abrupt end to his trip was due to the alarming bankruptcy of Sonder, a short-term rental company that recently collapsed after losing its partnership with Marriott.
D’Aoust was enjoying a weekend stay at a Sonder property in Montréal, Canada, when he received an email last Sunday informing him that he needed to leave his room by Monday at 9 am. This sudden request stemmed from the termination of Sonder’s licensing agreement with Marriott, which had allowed guests to reserve stays and earn loyalty points across Sonder’s 9,000 furnished apartments and boutique hotel rooms scattered in 40 cities worldwide.
Sonder’s agreement with Marriott, which was set to last for 20 years, ended due to the company’s “default,” linked to ongoing financial troubles. Once valued at $1 billion and regarded as a formidable competitor to Airbnb, Sonder aimed to combine the charm of smaller properties with the convenience of modern technology. However, the impact of the COVID-19 pandemic and difficulties in public markets during 2022 disrupted their operations significantly. The company had heavily relied on Marriott’s booking platform for crucial business support.
In a statement released on Monday, Sonder announced that it would start winding down operations immediately and file for Chapter 7 bankruptcy, implying a complete liquidation. The company cited “severe financial constraints” stemming from extended challenges in the integration of its systems and booking arrangements with Marriott as underlying issues.
The fallout from Sonder’s closure has left many travelers stranded mid-stay, with guests sharing their experiences across social media, predominantly pointing fingers at Marriott for the situation. In response, a Marriott representative stated that the company had worked diligently to stay informed about Sonder’s financial issues and had developed action plans to assist affected guests.
Marriott is currently communicating with guests who have reservations at Sonder properties made through Marriott’s channels and is collaborating with third-party platforms to reach those who booked elsewhere.
For D’Aoust, this unexpected early departure resulted in a two-hour drive back to Ottawa, but he expressed gratitude that he only lost a single day of his stay and missed merely a breakfast reservation. He empathized with those with longer reservations, who likely faced more significant inconveniences.