Marriott-backed hotel chain goes out of business leaving guests around the world ‘homeless’
Hotel guests across the world were left ‘homeless’ when they were suddenly evicted because Marriott-backed chain Sonder went bust.
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Sonder Holdings Inc. announced an “immediate wind-down of operations” after filing for bankruptcy and beginning insolvency proceedings.
Marriott terminated its licensing agreement with the firm which had been seen as a rival to AirBnb.
Sonder, which offered short-term apartment-style rentals and boutique hotels, rebranded as Sonder by Marriott last year and a partnership allowed the firm to list rooms on Marriott’s website.
But according to reports they struggled to integrate their booking systems leading to a sharp fall in revenue.
CEO Janice Sears said: “We are devastated to reach a point where liquidation is the only viable path forward.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.
“These issues persisted and contributed to a substantial and material loss in working capital. We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets,” she said.
Guests were given less than 24 hours to leave accommodation.
One Tiktoker posted: “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.”
Another, a travel influencer, posted: “Got kicked out of my hotel today… total nightmare. Marriott dropped Sonders and now I’m basically homeless.
“I should have chosen Landing to begin with smh.”
Marriott’s immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations,” the hotel chain said in a statement.
“Marriott remains committed to minimizing disruption to guests’ travel plans.”