Chaos as Marriott-branded hotels abruptly file for bankruptcy – and guests are kicked out mid-stay
Hotel guests around the world were kicked out of their rooms in the middle of their stay after Marriott’s partner Sonder suddenly went bankrupt.
The sudden closure left travelers stranded en route from Boston to Dubai, and some who returned found their belongings stuffed into plastic bags or thrown into the aisles.
Sonder, once valued at more than $1 billion and hailed as a rival to Airbnb, filed for Chapter 7 liquidation on Monday after Marriott International terminated its licensing agreement and forced the company to cease operations immediately.
The collapse comes less than a year after Sonder, which offers short-term apartment-style rentals and boutique hotels, rebranded as Sonder by Marriott Bonvoy under a 2024 partnership that allows it to list rooms on Marriott’s website.
But the two companies reportedly struggled to integrate their booking systems, leading to what executives called a “sharp decline in revenue.”
“We are devastated to have reached a point where the only viable path forward is divestment,” said interim CEO Janice Sears.
Guests were caught off guard Sunday when Marriott and Sonder told them to leave immediately, some halfway through their stay.
“I received a message from Sonder letting me know I have less than 24 hours to vacate the property because their partnership with Marriott has ended,” Katelyn Caralle wrote to X.
A guest is seen suddenly leaving the Sonder hotel in Philadelphia with his luggage.
In 2024, Sonder signed a high-profile licensing deal with Marriott International, renaming its properties ‘Sonder by Marriott Bonvoy’; This was a move aimed at bringing its short-term rentals into Marriott’s global loyalty program.
‘I’m lucky because my journey ended today… but what do the others who have already paid their money and whose stay was cut short do?’
Retired technology executive Steve McGraw said he and his wife were evacuated halfway through a 17-day New York stay booked through Marriott.
McGraw holds Elite status with Marriott Bonvoy.
He thought a stay at the Marriott-partnered Sonder Battery Park Apartments in New York’s financial district would be like the hundreds of other hotel trips he’d booked with the company over the years.
But on Sunday — nearly a week into their stay — she received emails from Marriott and Sonder ordering her to vacate by 9 a.m. the next day.
“We had to spend another couple thousand dollars to find a new location,” McGraw said Business Content. ‘It was very, very devastating. ‘They treated us very badly.’
McGraw was just one of many guests caught off guard by this challenging situation.
Paul Strack, a 63-year-old business owner from Arkansas, said he returned to his Sonder apartment in Boston on Sunday to find all his luggage packed up and placed in the hallway.
Marriott and Sonder Holdings on Sunday notified residents of boutique hotels and short-term rentals that they must leave immediately (stock image)
The company signed a licensing agreement with Marriott International and rebranded as Sonder by Marriott Bonvoy. Some Marriott and Sonder guests were suddenly ordered to evacuate in the middle of their stay after staff learned they had lost their jobs the same day.
Sonder offered short-term rentals and boutique hotels in 40 cities around the world, from Amsterdam to Dubai (pictured: A guest at Sonder’s Dubai hotel)
After Marriott terminated its licensing agreement, Sonder was forced to immediately cease operations and initiate Chapter 7 liquidations (image: A Sonder hotel in London)
“They confiscated all our personal belongings, toiletries, clothing, computers, electronics,” Strack said.
‘They put some in suitcases and some in plastic bags. It was quite shocking and very impersonal.’
Alec Arritola, a 27-year-old Harvard student, said that the staff at the Sonder hotel where he stayed in Boston was as surprised and devastated as he was.
“I immediately went to the office to talk to the manager, and he was shocked and upset to learn that he would be losing his job today,” Arritola said. He was planning to stay at the residence for 18 nights.
TikTok user Avery shared a clip She is seen dragging her suitcase down a cobblestone road in Montreal as it snows.
He wrote: ‘POV: I’m trying to keep my cool as I drag my luggage down the street after Marriott Hotels & Sonder Hotels pull away from each other on a random Sunday and tell us about the hotel room we’ve booked for three more nights in Montreal.’
One updateAvery said he was able to get another hotel room for $220 a night.
Another, using the username Reece.traveling, posted online: ‘I got kicked out of my hotel today… absolute nightmare. ‘Marriott has dropped Sonders, so I’m officially homeless now.’
