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1. Sonder announces liquidation after Marriott severs partnership
After Marriott International announced the early termination of a 20-year licensing agreement, apartment hotels brand Sonder Holdings announced plans to immediately cease operations and liquidate the company via Chapter 7 bankruptcy, CoStar News' Bryan Wroten reports.
In announcing the company's closure and liquidation, Sonder officials placed blame on a slow integration with Marriott following an August 2024 announcement that their properties would be bookable on Marriott's distribution channels.
“We are devastated to reach a point where a liquidation is the only viable path forward,” Sonder interim CEO and Chair Janice Sears said in the release. “Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.”
2. Government shutdown ending but travel, economic fallout will continue
With Congress now moving on legislation to reopen the U.S. government, experts warn the fallout from the historically long closure will continue to be felt in air travel and across the broader economy, the Associated Press reports.
“Short-lived shutdowns are usually invisible in the data, but this one will leave a lasting mark, both because of its record length and the growing disruptions to welfare programs and travel,” said Gregory Daco, chief economist at EY.
CNN reports experts are warning it will take some time before air travel patterns return to normal, and the clock is ticking.
“If we can’t get it done this week (to end the shutdown), we’re starting to get to the point where it won’t be fully recovered by Thanksgiving,” pilot and aviation consultant Kit Darby told the news outlet. “I think if they do it this week, we can be very close to fully recovered by Thanksgiving.”
3. Families intend to travel but want deals
The NYU SPS Tisch Center of Hospitality's 2025 U.S. Family Travel Survey indicates families' intent to travel and spend remain strong, but there's an increasing focus on affordability.
Speaking on the latest episode of the CoStar News Hotels podcast, NYU instructor and survey author Anna Abelson discussed how affordability is ranked as the biggest obstacle for 73% of parents surveyed.
"Families are trying to be more creative," she said. "So what they're trying to do, they're trying to maybe identify airlines that are not charging extra fees for sitting together or maybe luggage or maybe looking for special discounts to go to any amusement parks. ... Cooking maybe in the hotel versus going out."
4. Spending grows for wealthy travelers
Wealthy travelers continue to be the brightest spot in a broadly weak demand environment for hotels, The Wall Street Journal reports.
The newspaper notes: "Luxury-room prices have defied a drop-off in foreign tourists to the U.S. and a job slump among white-collar workers. Affluent travelers, made wealthier in recent years by stock-market rallies and real estate gains, have splurged on their stays with abandon."
CoStar's Jan Freitag analyzed the segment, noting ultra-luxury hotels are driving performance.
"Ever since the pandemic, the rapid rise in stock market and real estate values has disproportionately favored higher-income earners, and these consumers are spending part of their new wealth on travel experiences," he writes.
5. UK court rules asylum seekers can stay at Epping hotel
A controversial hotel north of London, the Bell Hotel, will continue to house asylum seekers after the Epping Forest District Council lost its court battle to kick them out, citing a lack of planning permission, Reuters reports.
The hotel has become the site of regular protests and a point of contention in U.K. politics. But government officials plan to stop their practice of housing migrants in hotels by 2029.