Sonder also plans to file insolvency proceedings abroad
Short-term rental firm Sonder announced plans to file for bankruptcy on Monday, just a day after Marriott International ended its 20-year licensing agreement, citing “Sonder’s default.”
The San Francisco-based company stated that it made comprehensive efforts to stabilize its finances but failed, forcing its board to pursue a court-supervised liquidation.
Sonder, once valued at $1.9 billion, struggled after the pandemic. Costly technical issues that arose after it was integrated with Marriott’s Bonvoy website also contributed to its problems. Those challenges led to a sharp decline in revenue and worsened its financial position.
Operating in 40 cities worldwide, Sonder blended hotel-style services with Airbnb-like stays, but relied heavily on long-term leases—a model that became unsustainable due to its asset-heavy nature.
Guests were reportedly ordered to vacate hotels within hours, leaving many scrambling for last-minute accommodations that cost them hundreds to thousands of dollars.
Marriott announced it would refund those customers who booked through its website.