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In August 2024, Marriott hit 9,000 hotels under its massive brand umbrella. The lodging giant did not stop there and added its 31st brand under a licensing agreement with Sonder Holdings Inc. This deal added more than 9,000 rooms to Marriott’s portfolio and approximately 1,500 rooms to its pipeline. This was yanked today as Marriott confirmed that its licensing agreement with Sonder Holdings Inc. was terminated following Sonder’s default. This effectively ends the short-term rental company’s affiliation with the Marriott Bonvoy® loyalty program.
Effective immediately, Sonder properties will no longer appear on Marriott booking channels. The move brings an abrupt end to the partnership that allowed travelers to earn and redeem Marriott Bonvoy® points when staying at select Sonder-managed accommodations.
Marriott stated that its immediate focus is on assisting guests currently staying at Sonder properties or holding upcoming reservations. Customers who booked directly through Marriott’s channels will be contacted by Marriott representatives to discuss next steps (including rebooking options and support for affected stays). Guests who made reservations through third-party travel agencies or online booking platforms are being advised to contact those providers directly for assistance with changes, cancellations, or refunds.
The Marriott–Sonder agreement, announced as part of Marriott’s Apartments by Marriott Bonvoy expansion strategy, was intended to bring professionally managed short-term rental units into the brand’s growing portfolio of alternative accommodations. However, Sonder’s ongoing financial and operational challenges appear to have led to the breakdown of the licensing arrangement.
Sonder Holdings, known for blending hotel-style service with apartment-style stays, has faced significant headwinds in recent years, including declining occupancy rates, high operating costs, and debt concerns. The termination of the Marriott agreement further complicates Sonder’s efforts to stabilize operations and maintain customer trust amid industry competition.
While Sonder properties are no longer part of the Marriott Bonvoy network, Marriott reaffirmed its commitment to expanding its presence in the extended-stay and apartment-style lodging sector. The company continues to grow its Apartments by Marriott Bonvoy portfolio globally, with new developments planned across North America, Europe, and the Middle East.
Anthony’s Take: The end of the Sonder partnership shows that Marriott will not tolerate financial instability across all of its affiliated brands and licensed partners regardless of how much it wants to keep growing. Sonder has been struggling for a long time and Marriott pulling the plug is not going to help it.
(Featured Image Credit: Sonder.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
1 comment
No.
The only thing Marriott will not tolerate is not being paid.
There is a difference.