Marriott partner Sonder's bankruptcy leaves thousands of guests stranded after abrupt evictions, ‘An absolute nightmare’

Sonder's Chapter 7 bankruptcy led to the eviction of guests from hotels partnered with Marriott, leaving many scrambling for alternative accommodations.

Several guests from Boston to Dubai were evicted from their hotel accommodations after Marriott's affiliate, Sonder, unexpectedly declared bankruptcy.

Sonder, a former $1 billion startup regarded as a rival to Airbnb, filed for Chapter 7 bankruptcy on Monday. (Unsplash)

The short-term rental firm, which collaborated with Marriott, revealed its intention to cease operations and pursue Chapter 7 liquidation, resulting in thousands of guests being left stranded globally. Affected travelers recounted their distressing experiences on social media, detailing how they were given short notice to vacate their rooms, with some discovering their belongings packed and left in hallways, as reported by Business Insider.

Guests received emails or notes slipped under their doors, directing them to vacate within a few hours. Many were compelled to secure new lodging at elevated rates, leading to considerable expenses.

Sonder files for Chapter 7 bankruptcy

Sonder, a former $1 billion startup regarded as a rival to Airbnb, filed for Chapter 7 bankruptcy on Monday following the termination of its licensing agreement by Marriott International, which resulted in an abrupt cessation of its operations. In contrast to Airbnb, Sonder's business model involved owning and managing its own properties instead of merely listing rentals.

A spokesperson for Marriott indicated that the company is in contact with impacted guests to assist them in finding alternative accommodations at other Marriott locations and to facilitate refunds for those who made reservations through Marriott's channels.

Sonder issues notice to customers

Following the company's downfall, numerous customers who had arranged Marriott stays via Sonder were suddenly compelled to leave their lodgings. The shutdown left guests in the midst of their stays at various Sonder locations globally, including cities such as London, Boston, Montreal, and New York City. Many received less than 24 hours' notice to vacate, and some returned to discover their possessions packed into plastic bags or abandoned in hallways.

Guests at a hotel in New York City were met with a startling notice affixed to the elevator doors, directing them to check out by 9am local time on Monday, November 10. The notice stated: “Sonder's licensing agreement with Marriott International Inc is no longer in effect. Consequently, Sonder is unable to honor the remainder of your stay. We strongly advise you to vacate the premises as soon as possible, but no later than 9am local time on Monday, November 10, as your access to your room may be restricted at that time.”

Sonder's Bankruptcy leaves guests struggling to find new lodging

“Trying to maintain my composure while dragging my luggage down the street after Marriott Hotels & Sonder Hotels broke up with each other on a random Sunday and told us to get the f**k out of the hotel room we had booked for another three nights in Montreal,” one user claimed on social media.

“Sickening. Marriott did Sonder and its guests DIRTY. Cancelling a guest's reservation/stay is a cardinal sin in this business. Stranding guests in 40 countries simultaneously? Horrible way to handle this situation. Heartless to the company, its employees and customers,” another added.

A couple recounted their challenging experience, claiming that they were “evicted from our hotel reservation at Sonders in New York City”.

They stated: “I received a notification from Sonder providing me with less than 24 hours' notice to leave the premises due to the termination of its partnership with Marriott.”

A fellow guest informed Business Insider that he and his spouse were evicted midway through a 17-day visit in New York – despite his Elite status with Marriott.

In another instance, a traveler reported that his luggage had been mishandled by the time he arrived back at his Boston apartment on Sunday, The Sun reported.

Additionally, another user on social media expressed: “I was removed from my hotel today... an absolute nightmare.”

Sonder Interim CEO reacts

Meanwhile, Interim CEO at Sonder, Janice Sears, stated that they are “devastated” to arrive at a juncture where liquidation is the sole feasible option moving ahead, The Sun reported.

“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.”