Marriott ends licensing agreement with short-term rental business Sonder

Marriott International has terminated its relationship with short-term apartment rental business Sonder, leaving hundreds of guests scrambling for new accommodations.

Sonder, a San Francisco-based provider of short-term, apartment-style rentals and boutique hotels, had its licensing agreement under Marriott’s Bonvoy brand terminated following a default on financial terms with Bethesda, Maryland-based Marriott, the hotelier announced in a statement 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 the release.

Sonder offers short-stay apartment rentals in major metro areas and cities, according to its website. 

While the company does not have any properties in Nassau or Suffolk, Long Island business and corporate travelers who do business in New York City or in other major cities and stay at their lodges are likely to be impacted, said Dorothy Roberts, president of the Long Island Hospitality Association, an East Northport-based trade group for hotels and other tourism-related businesses. 

Officials with Sonder did not immediately respond to requests for comment Monday.

Marriott did not answer questions about what financial terms Sonder defaulted on and referred questions on the termination to the company’s news release.

The termination came as a surprise to those in the hotel industry and Sonder customers alike, Roberts said.

“Now, a lot of the Bonvoy members are upset because they had reservations at these properties, and now they are being told, without notice ... to leave the hotel that they are staying at, and [Marriott] will help them find another property,” Roberts said.

Roberts said normally brands give some advance warning before canceling agreements like the one Sonder had with Marriott, especially since the two businesses penned the deal in 2024, she said.

“It was a pretty abrupt move,” Roberts said. “I think there’s more going on with the financials that Marriott doesn’t want to be associated with.” 

The deal between the two increased Sonder’s liquidity profile by $146 million and increased Marriott’s reach by over 9,000 units, according to Reuters. News of the deal buoyed Sonder’s stock price last year.

Sonder went public in 2021 at a valuation of around $2.2 billion. Its market value is now around $6.79 million, according to Reuters.

The hotel giant said in its announcement the “immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations.”

Marriott said it will be contacting guests who booked Sonder stays directly through Marriott channels, including Marriott.com, the Marriott Bonvoy App and Marriott’s worldwide reservation centers.