Marriott International has terminated its licensing agreement with apartment-style accommodations provider Sonder Holdings and removed all Sonder inventory from its distribution channels due to what it called Sonder's "default," Marriott announced Sunday.
"Sonder is no longer affiliated with Marriott Bonvoy, and Sonder properties are not available for new bookings on Marriott's channels," Marriott said in a statement.
Marriott said its "immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations," and said it would contact guests at Sonder properties directly who booked through Marriott channels. Some travelers at Sonder properties posted on social media channels word from Marriott that their reservations would not be continued past Sunday and they would receive refunds for the balance of their stay.
"Guests who booked through a third-party online travel agency should contact those organizations," Marriott said.
Marriott's abrupt termination of the Sonder deal ends what was a 15-month relationship after first announcing in August 2024 the licensing deal that would enable Sonder's inventory to be bookable in Marriott's channels. Sonder later indicated Marriott paid it $15 million in key money as part of what was set to be a 20-year deal. All of its inventory became available in Marriott channels in June 2025.
Sonder noted in February that it was required to pay Marriott an undisclosed royalty fee as part of the deal.
The end of the deal raises questions about Sonder's ability to continue as an independent company. Sonder in multiple filings with the U.S. Securities and Exchange Commission has acknowledged its "substantial doubt"about its ability to remain a going concern even with the Marriott deal in place. Sonder's live bookable units have declined throughout the year, and co-founder Francis Davidson in June stepped down as CEO and as a member of the company's board of directors. CFO Michael Hughes departed in August.
Sonder in a Thursday SEC filing said its board had postponed to an undetermined date the company's annual meeting of shareholders, which had been scheduled for Nov. 6.
Sonder did not immediately return a request for comment Sunday.