Marriott Terminates Its Sonder Partnership After ‘Default’

Key Points

• Marriott ended its licensing agreement with Sonder after Sonder defaulted on their contract, reducing Marriott's 2025 net room growth forecast.
• Sonder's properties are no longer available for new bookings through Marriott, affecting about 7,700 rooms across 140 properties.
• Sonder faces financial struggles, with a recent net loss, postponed board meeting, and a potential Nasdaq delisting if its stock doesn't recover.

Summary

Marriott has terminated its partnership with Sonder Holdings after Sonder defaulted on their agreement, leading to a lowered net rooms growth forecast for Marriott in 2025. All Sonder listings have been removed from Marriott's booking channels, impacting thousands of rooms. Sonder, meanwhile, is experiencing significant financial difficulties, including ongoing losses, a postponed board meeting, and a warning from Nasdaq about a potential delisting.