Hotel company Without officially filed for bankruptcy after partnership with hotel giant collapsed Marriott International.
A San Francisco firm that managed thousands of short-term rental properties, including apartments and boutique hotels around the world, filed a lawsuit Chapter 7. Liquidation proceedings in federal bankruptcy court in Delaware on Friday.
In legal filings, Sonder said its estimated assets range from $1 billion to $10 billion and its estimated liabilities range from $1 billion to $10 billion.
Without announced plans for bankruptcy earlier this week, saying it would immediately wind down its U.S. operations after Marriott abruptly terminated its licensing agreement with the company – a move that sparked chaos and confusion for overwhelmed guests.
In announcing its plans to file for Chapter 7, Sonder also said it would “initiate insolvency proceedings” in other countries where it operates.
Sonder, a firm once valued at more than $1 billion, said it “faced significant financial constraints resulting from, among other things, prolonged problems integrating the company's systems and reservation engines with Marriott International.”
The short-term rental company said it “made comprehensive efforts to evaluate all financial and other strategic alternatives, including the sale of its business and operations, to improve its financial condition” but was “unable to complete a viable going concern transaction for its business and operations or obtain additional liquidity.”
In addition to managing properties, Sonder, launched in 2014, also offered an online platform for travelers to book stays at properties.
Marriott signed a long-term licensing agreement with Sonder in August 2024, prompting Sonder to rebrand as Sonder by Marriott Bonvoy.
The hotel chain announced Sunday that the agreement had been terminated due to Sonder's “default.”
“As a result, Sonder is no longer affiliated with Marriott Bonvoy, and Sonder hotels are no longer available for new bookings on Marriott channels,” Marriott said.
This has resulted in the cancellation of current and future traveler bookings.
This story is evolving. Please stay tuned for updates.
