The hospitality industry experienced a substantial shock this week as Sonder, a company once valued at over a billion dollars, declared bankruptcy. This led to the immediate eviction of guests staying at Marriott-branded hotels globally. The liquidation, filed on Monday, followed the termination of Sonder's licensing agreement with Marriott International, a move that has left many travelers without accommodation and with their possessions in disarray.
Sonder's financial troubles came to a head less than a year after rebranding as Sonder by Marriott Bonvoy, an initiative that integrated its listings into Marriott's booking platform. However, company executives faced severe difficulties merging their reservation systems, resulting in what the Daily Mail cited as a "sharp decline in revenue."
Interim CEO Janice Sears expressed profound regret in a statement, stating, "We are devastated to reach a point where liquidation is the only viable path forward."
The sudden bankruptcy and subsequent fallout caught numerous guests by surprise, as Marriott and Sonder issued joint instructions for immediate room evacuation on Sunday. The abrupt notice interrupted many travelers' plans, forcing them to seek alternative accommodations with little to no warning.
Social media platforms like TikTok became outlets for affected individuals to share their experiences. Avery, an Edmonton resident, posted a video portraying her distress while dragging luggage through Montreal's snowy streets. Meanwhile, a couple from New York City, Minjun and Kevin, documented their abrupt displacement on the platform, highlighting the lack of prior notice.
Katelyn Caralle's tweet about receiving an evacuation notice has garnered attention online. "Received a message from Sonder giving me less than 24 hours notice to vacate the property because its partnership with Marriott was terminated," she shared, voicing concerns for those with ongoing reservations.
Long-time Marriott customer Steve McGraw described the situation as "very, very disruptive," after being evicted from his New York City stay. Similarly, Paul Strack from Arkansas discovered his belongings packed without consent in a Boston Sonder apartment, underscoring the impersonal handling of guests' property during the crisis.
The abrupt termination of the Marriott-Sonder partnership has not only displaced guests but has also raised questions about the viability of Sonder's business model. Sheel Mohnot, an industry observer, compared the situation to WeWork's challenges, emphasizing the difficulty of sustaining a business with fixed lease costs and variable demand.
