Marriott International announced that it has terminated its partnership with Sonder Holdings, which was signed in 2024, due to Sonder’s breach of obligations.
The agreement provided for the inclusion of more than 9,000 Sonder units in the Marriott portfolio by the end of 2024, as well as approximately 1,500 additional units at a later stage. After the termination of the partnership, Marriott clarified that the agreement “is no longer in effect due to Sonder’s breach.”
Sonder is no longer part of the Marriott Bonvoy loyalty program, while its properties are not available for new bookings through Marriott channels.
Marriott emphasized that its priority is to support guests who are already staying at Sonder properties, adding that it will contact those who have made reservations through its own systems directly. For customers who have made reservations through third-party platforms, the company recommended that they contact their respective providers directly.
This development led Marriott to revise downward its forecasts for its 2025 net room growth, which is now expected to be close to 4.5%, about 45 basis points lower than its previous estimate.
The Marriott-Sonder partnership was announced as a strategic move to expand the group into alternative accommodations and short-term stays, a sector where Sonder is heavily active, offering fully equipped apartments and “urban hotels” in major cities internationally. The termination of the agreement comes at a time when Sonder is facing financial pressures and liquidity problems, while trying to rationalize its portfolio and limit losses.
Marriott, for its part, continues to invest in growth through partnerships and new brands, however this development temporarily slows down the growth momentum of its network for 2025.
