Marriott faces backlash after Sonder liquidation

Guest disruption highlights the risks of aggressive asset-light expansion

Marriott’s licensing deal with Sonder collapsed after the apartment-style operator entered liquidation, leaving guests suddenly displaced and unable to secure refunds through Marriott. The fallout underscores the reputational and operational risks major hotel brands face when expanding room counts through third-party partners.

Key takeaways

• Abrupt reservation cancellations: Marriott informed guests their Sonder bookings were no longer valid after the operator announced plans to liquidate.
• Refund complications: Because guest payments went directly to Sonder, Marriott says it cannot issue refunds, forcing travelers to pursue credit card disputes.
• Widespread guest frustration: Travelers reported being told to vacate with less than a day’s notice and encountered laid-off staff unable to help.
• Sonder’s long-running financial decline: Heavy losses, delayed filings, and a slow integration with Marriott systems contributed to its collapse.
• Reputational risks for Marriott: Critics argue Marriott underestimated Sonder’s instability, leaving guests bearing the consequences of the failed partnership.

Get the full story at Bloomberg (subscription required)

Read also Marriott details Sonder’s collapse and alleged safety threats