Apartment-hotel brand company Sonder Holdings is ceasing operations of its U.S.-based and international businesses.
Following the announcement that Marriott International has terminated its 20-year license agreement with Sonder “due to Sonder’s default,” Sonder shared today though a news release it will “complete winding down operations immediately” and will start Chapter 7 liquidation of its U.S. business. It also intends to initiate insolvency proceedings in the other countries where it operates.
In the release, Sonder said it has faced “severe financial constraints” due to, among other factors, the prolonged challenges to integrate its systems into Marriott’s platforms.
“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.”
The issues persisted and contributed to a substantial and material loss in working capital, she said. Sonder officials looked at all viable alternatives to avoid this outcome, but they found no other choice.
Among other options, Sonder considered the sale of its business and operations to improve its financial condition, the news release states. It worked with several strategic and financial parties but was unable to execute a viable going concern transaction for its business and operations or obtain additional liquidity.
In a statement, Marriott said it is aware of Sonder's intention to seek a U.S. bankruptcy filing.
"We have worked tirelessly to remain informed about Sonder’s financial situation and develop action plans so that we can work to meet the needs of our guests, which remains our priority," the statement said. "Sonder operates its properties and has made independent business decisions. Marriott does not agree with the characterizations expressed in Sonder’s release."
In August 2024, Sonder and Marriott entered into the licensing agreement to add Sonder’s properties and rooms to Marriott’s Bonvoy booking platforms. Through the agreement, Marriott had provided Sonder with key money in the amount of $15 million through two payments over the last year for milestones met.
Sonder started in 2014 and 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.
Since early 2024, Sonder repeatedly reported its quarterly and full-year earnings filings late, resulting in notifications of deficiency from the Nasdaq Stock Market. The company’s filed its latest earnings release for the second quarter in October. It reported revenue of $147.1 million, an 11% year-over-year decrease, and a net loss of $44.5 million, a 236% year-over-year decrease.
The company’s then-CEO, co-founder Francis Davidson, stepped down in June 2025 from his chief executive role and spot on the company’s board of directors, and Sears stepped into the role of interim CEO. Its chief financial officer, Michael Hughes, left the company in August.
Editor's note, Nov. 10, 2025: This story has been updated to include a statement from Marriott International regarding Sonder's announcement.