After a busy day exploring London, Carol Tsai returned to her Sonder hotel room only to receive an email instructing her to vacate immediately. Shocked and concerned, Tsai, who had already paid for her stay, wondered where she would go next.
Guests at Sonder properties in various locations, including New York and France, were abruptly asked to leave as the company defaulted on payments, leading Marriott to terminate their licensing agreement. Sonder, known for operating around 9,000 short-term rental and boutique hotel units across 40 cities worldwide, including its founding cities of Toronto, Vancouver, and Montreal, announced a sudden shutdown and liquidation.
Janice Sears, Sonder’s interim CEO, expressed deep regret over the necessity of liquidation due to financial challenges. The partnership between Marriott and Sonder, established in 2024, was terminated by Marriott citing Sonder’s default.
Employees like Amina Balde at Sonder’s Old Montreal location were caught off guard by the unfolding events. Balde recounted how staff received news of bankruptcy shortly before being informed officially, leaving them shocked and uncertain about their future. Guests, too, expressed frustration upon learning about the sudden closure.
Sears praised the dedication of Sonder’s employees over the years, acknowledging their role in providing exceptional guest experiences. Sonder, founded in Montreal in 2012 before moving its headquarters to the U.S., aimed to bridge the gap between traditional hotels and short-term rentals, offering a unique hospitality experience.
Financially, Sonder had seen significant investments and growth, reaching a valuation exceeding $1 billion by 2019. Despite high expectations from the Marriott partnership, financial constraints arose from operational challenges, contributing to the company’s bankruptcy.
Marriott emphasized its focus on supporting affected guests, particularly those with existing or upcoming reservations. Tsai, one of the impacted guests, shared her ordeal of finding alternative accommodation at her own expense. She emphasized the importance of receiving a full refund and compensation for the inconvenience caused.
Experts highlighted the challenges faced by companies like Sonder, balancing between industry giants like Airbnb and traditional hotels. Guests stranded without lodging were advised to contact nearby hotels directly for potential options.
As the fallout continues, affected guests and employees grapple with the aftermath of Sonder’s sudden closure, highlighting the uncertainties and challenges faced in the hospitality industry.