After Marriott International abruptly ended its licensing agreement with apartment-style hotel operator Sonder due to a "default," Sonder said it was winding down operations.
Sonder said it was filing for Chapter 7 liquidation in the U.S., with insolvency proceedings also planned internationally.
In a statement, interim CEO Janice Sears blamed Sonder's collapse on "severe financial constraints arising from, among other things, prolonged challenges in the integration of the company's systems and booking arrangements with Marriott International."
Sonder said it had explored alternatives, including a sale of the business, but was unable to execute a transaction or obtain additional liquidity.
"We are devastated to reach a point where a liquidation is the only viable path forward," Sears said.
The company said additional information about the liquidation proceedings would be made available at a later date.
Marriott said Monday its immediate focus was supporting guests currently staying at Sonder properties and those with upcoming reservations. The company said it will contact and assist customers who booked through Marriott channels. Guests who booked through online travel agencies must contact the OTA.
The Sonder partnership, announced in 2024, was positioned as a long-term licensing deal, resulting in the debut of the Sonder by Marriott Bonvoy platform. Under the agreement, Marriott received royalty fees based on a percentage of Sonder's gross room revenues.
Launched in 2014, Sonder has approximately 9,000 apartment-style units in 40-plus countries. The company has faced ongoing financial difficulties, however, with Sonder's Q2 2025 financial results, released in October, showing a $101 million net loss for the first half of the year as well as a stockholders' deficit of more than $715 million.
This report was updated on the afternoon of Nov. 10 with information that Sonder is ceasing operations and liquidating.