Sonder announces bankruptcy plans; tells guests to vacate hotel rooms: 'People were scrambling'
Apartment rentals firm Sonder said it's liquidating operations, a day after Marriott said a licensing agreement between the two companies had ended.
TL;DR
- Sonder plans to file for bankruptcy and wind down U.S. operations.
- Marriott International terminated a licensing agreement with Sonder, citing Sonder's default.
- Sonder cited technical integration problems with Marriott's Bonvoy website for financial difficulties.
- Guests were given short notice to vacate Sonder hotel rooms.
- Some guests experienced difficulties obtaining assistance from Marriott and are seeking refunds.
- Sonder pursued an "asset-heavy" strategy involving long-term leases, which is now considered undesirable in the hospitality sector.