Vacation nightmare! Sonder guests left stranded as hotel firm abruptly went out of business after Marriott fallout

Hotel rental company Sonder’s announced that the company will cease operations immediately. It was reported that this situation left guests checking into Marriott hotels in a difficult situation due to the termination of the licensing agreement with the chain.

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According to a report from the news portal NewYorkPostOn Monday, November 10, 2025, Sonder Holdings announced an ‘immediate cessation of operations’ as the company filed for Chapter 7 bankruptcy, which would initiate the liquidation of its businesses in the United States and bankruptcy proceedings abroad.

Marriott Hotels terminated its licensing agreement with San Francisco-based company Sonder’s on Sunday after the company defaulted on its August 2024 agreement.

Guests’ holiday nightmare

Guests mentioned in the news agency’s report said they were kicked out of their rental accommodation due to the company’s sudden bankruptcy.

Steve McGraw, a former technology executive, and his family, including his wife, daughter, and newborn grandson, were evicted from their 17-day rental just after a week of their stay.

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“We had to spend a few thousand more dollars to find a new location,” McGraw told the news portal. “It was very, very devastating. They treated us very badly,” he said.

Another guest in Montreal noted that he was wandering around the city with his luggage after the company left Marriott Hotels.

“POV: Trying to keep my cool as I drag my luggage down the street after Marriott Hotels and Sonder Hotels broke up with each other on a random Sunday and told us the hotel room we had booked for three more nights in Montreal,” according to a TikTok post cited in the news portal’s report.

Other guests and travel influencers like ‘Reece.travelling’ claimed they were left homeless due to the sudden termination of their contract by Marriott.

“I got kicked out of my hotel today… an absolute nightmare,” he said on TikTok, according to the report. “Marriott dropped Sonders, so I’m officially homeless now.”

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Once a $1 billion valuation is now bankrupt

According to a report from Daily MailSonder hotels, once valued at $1 billion and a rival to Airbnb, is now facing bankruptcy after Marriott International terminated its licensing agreement, forcing the company to shut down its operations with immediate effect.

Sonder has allowed its customers to book apartments around the world, just like Airbnb runs its business, but with a key difference it rents and manages the properties on its own.

As part of a licensing agreement with Marriott International, the platform allowed customers to book one of 10,500 hotel rooms worldwide. However, after the company filed for bankruptcy, Sonder customers who had booked accommodation through the platform were evicted and asked to vacate the properties immediately.

As the company filed for Chapter 7 bankruptcy in the United States, it faced a travel nightmare, from canceling previous reservations to having no accommodation plans available for Sonder customers around the world.