Chaos as Marriott-branded hotels abruptly file for bankruptcy

Travelers around the globe found themselves unexpectedly evicted from their accommodations as the hospitality provider Sonder, affiliated with Marriott, abruptly declared bankruptcy.

This sudden closure left many guests stranded in locations from Boston to Dubai. Some returned to discover their personal items hastily packed into plastic bags or left in corridors.

Once valued at over $1 billion and seen as a competitor to Airbnb, Sonder filed for Chapter 7 bankruptcy on Monday. This followed Marriott International’s decision to end its licensing agreement, forcing Sonder to cease operations immediately.

Less than a year ago, Sonder had rebranded under the banner of Sonder by Marriott Bonvoy, as part of a 2024 partnership that enabled it to feature its accommodations on Marriott’s platform.

However, the companies reportedly faced challenges in merging their booking systems, which executives noted resulted in a significant drop in revenue.

“We are heartbroken to find ourselves in a position where liquidation is the only feasible option,” expressed interim CEO Janice Sears.

Guests were blindsided on Sunday when Marriott and Sonder ordered them to vacate immediately — some halfway through their stays. 

‘Received a message from Sonder giving me less than 24 hours notice to vacate the property because its partnership with Marriott was terminated,’ Katelyn Caralle wrote on X. 

A guest is seen abruptly leaving the Sonder hotel she was staying at in Philadelphia with her luggage in tow

A guest is seen abruptly leaving the Sonder hotel she was staying at in Philadelphia with her luggage in tow 

In 2024, Sonder signed a high-profile licensing deal with Marriott International and rebranded its properties as ‘Sonder by Marriott Bonvoy’ — a move meant to bring its short-term rentals under Marriott’s global loyalty program

In 2024, Sonder signed a high-profile licensing deal with Marriott International and rebranded its properties as ‘Sonder by Marriott Bonvoy’ — a move meant to bring its short-term rentals under Marriott’s global loyalty program

‘I’m lucky because my trip ended today… but what are others doing who already paid and had their stays cut short?’

Retired tech executive Steve McGraw said he and his wife were evicted halfway through a 17-day New York stay booked through Marriott. 

McGraw holds Elite status with Marriott Bonvoy. 

He thought is stay at the Marriott-partnered Sonder Battery Park Apartments in NYC’s financial district would be like the hundreds of other hotel trips he’s booked with the company over the years.

However, on Sunday — about a week into their stay — he received emails from Marriott and Sonder ordering him to vacate by 9am the next day.

‘We ended up spending several thousand dollars more to find a new place,’ McGraw told Business Insider. ‘It was very, very disruptive. They treated us so poorly.’

McGraw was just one of the many guests who were caught off guard with this tricky situation.

Paul Strack, a 63-year-old business owner from Arkansas, said that when he returned to his Sonder apartment in Boston on Sunday, he discovered all his luggage had been packed up and placed in the hallway.

Marriott-branded Hotels Unexpectedly File for Bankruptcy, Stirring Industry Turmoil

Those staying in the boutique hotels and short-term rentals were notified on Sunday by Marriott and Sonder Holdings that they would need to vacate immediately (stock image)

The company signed a licensing deal with Marriott International and rebranded as Sonder by Marriott Bonvoy. Marriott and Sonder guests were abruptly ordered to vacate, some mid-stay, as staff learned they had lost their jobs the same day

The company signed a licensing deal with Marriott International and rebranded as Sonder by Marriott Bonvoy. Marriott and Sonder guests were abruptly ordered to vacate, some mid-stay, as staff learned they had lost their jobs the same day

Sonder offered short-term rentals and boutique hotels in 40 cities across the world, including Amsterdam all the way to Dubai (pictured: a guest at Sonder's Dubai hotel)

Sonder offered short-term rentals and boutique hotels in 40 cities across the world, including Amsterdam all the way to Dubai (pictured: a guest at Sonder’s Dubai hotel) 

Sonder was forced to wind down operations immediately and initiate a Chapter 7 liquidations after Marriott terminated its licensing agreement (pictured: a Sonder hotel in London)

Sonder was forced to wind down operations immediately and initiate a Chapter 7 liquidations after Marriott terminated its licensing agreement (pictured: a Sonder hotel in London) 

‘They handled all our personal belongings, toiletries, clothing, computers, electronics,’ Strack said. 

‘Some they packed into suitcases, and some they put in plastic bags. It was quite shocking and very impersonal.’ 

Alec Arritola, a 27-year-old Harvard student, said staff at the Sonder hotel he was staying at in Boston were as surprised and devastated as he was. 

‘I immediately went to the office to speak with the manager, who was also shocked and saddened to learn she would lose her job today,’ Arritola said. He had been planning to stay in the residence for 18 nights. 

TikTok user Avery shared a clip of herself dragging a suitcase over a cobbled road in Montreal as snow was falling. 

She wrote: ‘POV: Trying to maintain my composure while dragging my luggage down the street after Marriott Hotels & Sonder Hotels broke up with each other on a random Sunday and told us to gtfo of the hotel room we had booked for another three nights in Montreal.’ 

In an update, Avery said she was able to get another hotel room for $220 a night. 

Another, who uses the handle reece.traveling, shared online: ‘Got kicked out of my hotel today… total nightmare. Marriott dropped Sonders, so now I’m basically homeless.’

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