Over the last few years we’ve seen the major hotel operators increase their footprint at a rapid pace, even when it doesn’t seem to make any sense. However, we may be starting to see a pullback.
Marriott and Sonder Abruptly End Partnership
In August 2024, Marriott entered into an agreement with Sonder to bring the company’s 9,000+ apartment style units under the Marriott Bonvoy umbrella. Now, just over a year later, Marriott has terminated the agreement with immediate effect.
Effective immediately, Sonder is no longer affiliated with Marriott Bonvoy and Sonder properties are not available for new bookings via Marriott’s official channels. According to Marriott, removal of Sonder from the company’s platforms is due to its default. In a statement, Marriott stated:
Marriott’s immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations. Marriott will be contacting guests who booked directly through Marriott channels, including marriott.com, the Marriott Bonvoy App and Marriott’s worldwide reservation centers, to address their reservation and booking needs. Guests who booked through a third-party online travel agency should contact those organizations. Marriott remains committed to minimizing disruption to guests’ travel plans.
Guests with questions about current or future reservations at a Sonder property booked through Marriott channels can contact Marriott customer service here.
With the removal of the Sonder rooms from Marriott’s system, the company’s net rooms growth for 2025 is now expected to approach 4.5 percent.
What Happened to Sonder?
As recently as 2022, Sonder (which trades under the $SOND ticker) shares were trading in excess of $200. The company’s value then fell off a cliff and was trading around $7 per share when they signed the agreement with Marriott. In the months sense, shares of the company have continued to plummet, closing around $0.50 at the end of this week.
Clearly Sonder is having some issues as the company’s stock price fell off a cliff back in 2022. While I wouldn’t blame Marriott for terminating an agreement with the company that had those losses, Marriott’s agreement didn’t go into effect until 2024. This was well after Sonder encountered significant financial difficulties.
Maybe I’ve been living under a rock but I never had much knowledge of the Sonder brand, let alone its connection to Marriott Bonvoy. I only recently discovered the company when searching for a hotel in New York through my company travel portal. While Sonder properties showed up under Marriott in the search, they weren’t eligible for me to book given the travel policies.
Honestly, I can’t provide much of an opinion on Marriott’s partnership with Sonder as I don’t have any firsthand experience with Sonder. However, I am surprised that Marriott chose to enter into and then terminate a partnership with a company in such a precarious financial situation.
Summary
Effective immediately, Marriott International has terminated its agreement with Sonder due to the latter’s financial position. For those that booked stays at Sonder properties through Marriott affiliated channels, the company will be in touch with those guests regarding the change.