Sonder Hotel Chain Bankruptcy Forces Guest Evictions Mid-Stay
Guests around the world are facing abrupt mid-stay evictions due to the bankruptcy of the Sonder hotel chain. This unexpected collapse follows the termination of Sonder’s leasing agreement by Marriott, which had partnered with the firm just a year prior.
Bankruptcy Details and Guest Impact
Marriott announced its decision to end the partnership, citing “Sonder’s default” as the reason. As a result, rooms at Sonder can no longer be booked through Marriott’s platforms. Interestingly, Marriott is assisting customers who made reservations directly through its site. However, those who booked via third-party platforms must seek refunds through their credit card companies.
Sonder’s Financial Struggles
In a statement, Sonder acknowledged facing severe financial constraints, primarily due to issues in integrating its booking systems with Marriott. Janice Sears, Sonder’s interim CEO, expressed devastation over having to pursue liquidation. She stated that unexpected challenges in technology alignment and decreased revenue from the Marriott Bonvoy reservation system contributed to the company’s financial downfall.
Customer Experiences and Concerns
- Some guests reported being locked out of their rooms, unable to retrieve belongings.
- Others expressed frustration over a lack of communication regarding their canceled reservations.
- Customers also noted that access codes for entry into Sonder properties ceased to function.
Many patrons chose Sonder for its perceived reliability, enhanced by the Marriott name. Affected guests expressed feelings of betrayal, with some sharing their negative experiences on social media. Comments included complaints about high rebooking costs at Marriott properties and a complete absence of support from Sonder.
Marriott’s Response
In light of the situation, Marriott has clarified that it does not directly charge customers for Sonder bookings. Instead, it is working to facilitate refunds and support its customers through this turbulent period.
Sonder’s Operational Landscape
Founded in Montreal, Sonder operated thousands of rooms across over 40 cities before its recent collapse. The firm was perceived as a formidable competitor to Airbnb, focusing on premium serviced apartments. Unfortunately, the closure of its properties marks a significant shift in the short-term rental market, leaving many guests in search of alternative accommodations.
The fallout from Sonder’s bankruptcy serves as a stark reminder of the volatility within the hospitality industry. Both Marriott and Sonder continue to navigate the challenges that arise from this unexpected turn of events, while guests are left to grapple with their disrupted travel experiences.
