Following the announcement on November 9 of the end of the licensing agreement between Mariott International, Inc. and Sonder Holdings Inc., Sonder announced to enter bankruptcy.
The end of the Marriott agreement blocked any possibility to book Sonder hotel residences on all booking channels owned by Marriott. On November 10, 2025, Sonder then announced it will immediately wind down operations and enter a Chapter 7 liquidation of its U.S. business. Clients remaining at Sonder properties were ordered to leave premises at all hotels on November 10 early morning.
International operations are expected to initiate insolvency proceedings. Any booking at these international properties in Europe or Dubai have been suspended. According to experts, around 9,000–10,000 units in approximately 140–150 Sonder properties were impacted by the wind-down / liquidation. This collapse reminds that buildings owners need to remain cautious when entering into lease properties long term, furnish them, rely on distribution partnerships. While having high fixed cost bases.
