Sonder Hotel Chain Collapses, Stranding Guests Mid-Stay
During a recent weekend trip, Patrick M. D’Aoust experienced an unexpected end to his anniversary celebration due to the sudden collapse of Sonder, a short-term rental company. The collapse resulted from the termination of its partnership with Marriott, leaving numerous guests stranded mid-stay across various locations.
Sonder Hotel Chain Collapse: What Happened?
On a Sunday afternoon, D’Aoust received an email informing him to vacate his room at a Sonder property in Montréal, Canada, by 9 a.m. the following day. Despite his attempts to negotiate with staff for a brief extension, he was told to leave the premises immediately.
The End of a Partnership
Sonder’s difficulties began when its long-term licensing agreement with Marriott ended due to financial breaches, described as “default” by Marriott representatives. This deal had allowed Sonder’s guests to earn loyalty points across approximately 9,000 furnished spaces in 40 cities worldwide.
Impact of the COVID-19 Pandemic
Once valued at $1 billion, Sonder specialized in offering a hybrid experience between hotels and Airbnb accommodations. However, it struggled significantly during the COVID-19 pandemic and faced challenges in the financial markets in 2022. These setbacks ultimately led to its downfall.
Immediate Operations Shutdown
In a statement, Sonder announced that it would cease operations immediately and enter Chapter 7 bankruptcy, effectively liquidating its assets. The company cited severe financial constraints, stemming from operational issues with integrating their systems alongside Marriott.
Guests Stranded Mid-Stay
Social media platforms are filled with accounts from guests who found themselves in similar predicaments after the shutdown. Many expressed frustration toward Marriott, asserting their belief that the hotel chain had knowledge of Sonder’s financial woes earlier.
Marriott’s Response
A spokesperson from Marriott confirmed their commitment to staying informed about Sonder’s financial status and promised to work towards accommodating affected guests. They are reaching out to those who made reservations through Marriott.com, in addition to coordinating with third-party platforms for those who booked elsewhere.
Personal Experiences
- Patrick D’Aoust managed to return home to Ottawa after a two-hour drive.
- He expressed relief that his situation was not more severe, stating others with longer stays likely faced greater stress.
- D’Aoust regretted only missing a breakfast reservation due to the abrupt end of his trip.
The collapse of the Sonder hotel chain is a stark reminder of the volatile nature of the hospitality and travel sector, especially in the aftermath of the pandemic. As more details unfold, it’s clear that guests worldwide will continue to feel the ripple effects of this unfortunate event.
