Marriott details Sonder’s collapse and alleged safety threats

Marriott’s court filing outlines severe liquidity issues, guest risks, and millions owed as the failed partnership unravels

Marriott’s court filing provides a detailed account of Sonder’s rapid implosion, describing months of worsening financial distress and a breakdown in cooperation between the companies. The hotel group says Sonder’s liquidity evaporated so quickly that it faced an imminent shutdown of systems and staff, potentially leaving thousands of guests locked out mid-stay. Marriott argues it ended the licensing agreement to protect guest safety and manage the fallout, while Sonder maintains its collapse was driven by unexpected integration costs. The filing also reveals that Sonder owes Marriott nearly $18 million and has not actively assisted with guest remediation since entering liquidation.

Key takeaways

• Severe liquidity deterioration: Marriott states that Sonder had “little to no cash” by early November and lacked any viable contingency plan for an orderly wind-down.
• Unfulfilled reservations and advance payments: Sonder allegedly collected tens of millions in reservation payments for stays it later admitted it could not honor.
• Guest safety used as leverage: Marriott claims Sonder threatened to shut down property systems unless Marriott funded its wind-down, potentially locking guests out of rooms containing essential items.
• Rejected funding requests: Sonder asked Marriott for $28 million, later revised to $14.3 million, to support the wind-down; Marriott declined both requests.
• Immediate termination to protect guests: Marriott says it ended the agreement on Nov. 7 to take control of guest communications and activate emergency measures for relocations.
• Extensive global impact: More than 7,700 Sonder rooms were listed within Marriott’s system, with guests stranded worldwide when operations ceased.
• Payments routed solely to sonder: Even bookings made via Marriott channels were paid directly to Sonder, leaving Marriott owed approximately $17.7 million in fees.
• Limited post-collapse cooperation: Marriott asserts that Sonder has not meaningfully engaged in resolving guest issues since entering Chapter 7 liquidation.

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