Once the cool kid of the short-term rental scene, Sonder is officially out of keys. The San Francisco-based brand—celebrated for its minimalist interiors and app-powered stays—announced plans to file for bankruptcy this week, just a day after Marriott International ended its much-publicized licensing agreement.
The breakup was abrupt. Marriott’s Sunday statement said the 20-year deal was “no longer in effect,” citing Sonder’s “default.” By Monday, Sonder’s board voted to liquidate its U.S. business, closing a chapter on one of hospitality’s most ambitious experiments in blending tech and travel.
The Rise (and Reality) of a Hospitality Hybrid
Back in 2014, Sonder had all the makings of a travel-world disruptor. The company’s furnished apartments looked like something out of a design magazine with clean lines, local touches, a well-placed fiddle leaf fig. Guests could check in with their phones and skip the front desk altogether.
It caught on fast. Remote workers loved the independence; city travelers loved the aesthetic. Sonder was everything Airbnb wasn’t: curated, consistent, and ready for Instagram.
But behind the beautiful spaces sat a tougher story. Sonder didn’t just manage listings; it leased whole buildings. That meant big overhead, and when travel slowed or investors pulled back, the numbers stopped working. The partnership with Marriott was supposed to steady things.
Instead, it ended up being the last act.
A Partnership That Looked Perfect on Paper
When Marriott and Sonder announced their tie-up in August 2024, it sounded almost too good to miss. Marriott brought the scale; Sonder brought the modern touch. The plan: put Sonder’s apartments on Marriott’s Bonvoy platform so guests could have their design-forward cake, and earn loyalty points, too.
For a moment, it seemed like a smart evolution for both. But the technology side proved messier than expected, and the financial strain that followed was harder to hide.
Guests Left in Limbo
As news broke, guests in Sonder properties received less than a day’s notice to vacate. Reports surfaced of travelers hastily repacking, staff uncertain about next steps, and customer service lines becoming overwhelmed across multiple platforms. Marriott said its immediate focus was supporting guests who booked directly through Bonvoy, but for others, it was a scramble to rebook elsewhere.
The Market’s Wake-Up Call
Sonder’s collapse signals a reality check for the hybrid hospitality model. Design, tech, and autonomy remain in demand, but sustainable margins still favor asset-light operations. Think Airbnb’s flexibility or Marriott’s brand-driven consistency.
For hotel groups, the episode highlights that aligned systems and stable balance sheets must accompany partnerships with disruptors. For travelers, it’s a reminder that even the sleekest app check-in can’t replace the reliability of a well-staffed lobby.
Even as Sonder shutters, its influence lingers. The brand helped normalize minimalist design, frictionless tech, and apartment-style comfort across the hotel world, ideas that continue to shape how we stay.
In the end, Sonder’s downfall feels less like a collapse and more like a cautionary footnote in the evolution of hospitality: proof that good design and a clever app can’t always outpace the fundamentals of running a hotel.
