What drove Marriott to end partnership with aparthotel brand Sonder

The alignment of the world's largest hotel brand franchisor and an aparthotel brand company seemingly struggling financially wasn't built to last.

In early November, Bethesda, Maryland-based Marriott International ended its licensing agreement with Sonder Holdings due to default. That same day, Sonder announced it would begin winding down operations and begin liquidating its U.S. business.

Since then, more details have emerged about the challenges Sonder faced financially. Starting in 2014, Sonder leased, operated and managed units in hotels and apartment buildings by listing them for rent on its own website and through Airbnb. It became a publicly traded company in January 2022 through a merger with a special-purpose acquisition company. Sonder and Marriott struck a 20-year licensing agreement in August 2024 to add Sonder's portfolio to Marriott's Bonvoy loyalty and booking platforms.

Click through CoStar News Hotels' complete coverage of Marriott International's breakup with Sonder Holdings and favorite this page as it will be updated with more content.

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