Sonder Hotel Chain Evicts Guests Amid Bankruptcy
The Sonder hotel chain has faced significant operational challenges, leading to its decision to evict all guests amidst a bankruptcy situation. This outcome stems from various financial constraints and difficulties in integrating technology with Marriott International.
Sonder Hotel Chain Faces Bankruptcy
Sonder, founded in Montreal, specializes in premium serviced apartments and accommodations. It operates thousands of rooms across more than 40 cities worldwide. However, its future has become uncertain as the company is initiating insolvency proceedings in all operating territories.
Funding and Integration Challenges
The interim CEO of Sonder, Janice Sears, expressed sorrow over the company’s predicament, stating that liquidation appears to be the only feasible option. She noted that the integration with Marriott was severely delayed due to unexpected technological issues, which led to substantial costs for the company.
Sears also indicated that revenues had plummeted following Sonder’s inclusion in Marriott’s Bonvoy reservation system, further exacerbating financial strain.
Impact on Guests
- Guests booking through Marriott are being assisted in securing refunds.
- Those who made reservations through third parties are advised to contact their credit card issuers.
- Complaints have arisen regarding lack of communication about cancellations.
Reports highlight that several guests received no updates on their reservations, and some found it challenging to retrieve personal belongings due to malfunctioning entry codes. Sonder properties typically lack staff, relying instead on automated door codes for guest access.
Marriott’s Role and Response
Marriott International operates a portfolio of over 9,700 properties worldwide and provides a range of hospitality services. Although Marriott facilitates refunds for Sonder bookings, it clarifies that it does not directly charge customer cards for these reservations. Some guests feel misled, believing they were securing accommodations backed by Marriott’s brand.
One customer lamented the lack of support from Marriott, while others voiced frustration over the abrupt cancellation of their stays. The company has not yet publicly commented on these individual complaints, though it continues to manage its extensive array of properties across different countries.
The situation surrounding Sonder highlights the risks associated with third-party bookings and emphasizes the need for clear communication in the hospitality sector.
