Sonder shuts down after Marriott deal collapse
The once-hyped hospitality disruptor ends operations amid financial strain and failed integration
Sonder, once seen as the tech-driven future of hospitality, has filed for bankruptcy in the U.S. and declared insolvency abroad after Marriott ended their licensing agreement. The collapse marks the final chapter in a years-long struggle with mounting losses, failed integrations, and an unsustainable lease-based model.
Key takeaways
- Sudden shutdown: Sonder announced it will wind down all operations and file for bankruptcy after losing its Marriott Bonvoy partnership.
- Failed Marriott integration: Interim CEO Janice Sears blamed unexpected technology alignment challenges and high integration costs that reduced revenue and strained finances.
- Marriott’s response: Marriott disputed Sonder’s characterization, emphasizing guest care and distancing itself from Sonder’s independent business decisions.
- Unsustainable model: Sonder’s asset-light ambition was undermined by long-term lease obligations that proved disastrous during the pandemic and after.
- Venture-backed rise and fall: The company raised $680 million and went public via SPAC in 2022 at a $1.9 billion valuation, only to suffer widening losses and restated financials due to accounting errors.
- Leadership and liquidity crisis: Founder and CEO Francis Davidson resigned in June 2025 amid desperate financing attempts; Marriott deferred fees in exchange for new capital that never materialized.
- Final blow: On November 9, 2025, Marriott terminated the 20-year licensing deal after Sonder defaulted, leading to immediate booking halts, property removals, and guest evictions.
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