Guests around the world are facing disruption after Sonder, a property rental firm, suddenly declared bankruptcy. This surprising turn of events has left many vacationers scrambling to find new places to stay.
The trouble began when Marriott, a major hotel chain, terminated its leasing deal with Sonder. This partnership allowed guests to book Sonder properties through Marriott’s platforms. Marriott cited “Sonder’s default” as the reason for ending the agreement.
On social media, some travelers shared their frustrations. One Reddit user found himself locked out of his room, while others struggled with luggage in search of alternative accommodations.
Now, Sonder rooms are no longer available on Marriott’s site or app. Marriott is assisting customers who booked through its platforms but advises those who used third-party services to seek refunds from their credit card issuers.
Sonder’s financial woes stem from various issues, including difficulties in integrating their systems with Marriott’s. A statement from the company noted, “We faced severe financial constraints arising from prolonged challenges… which led to significant costs.” They also reported a drop in revenue linked to the Marriott booking system.
Founded in Montreal, Sonder had positioned itself as a competitor to Airbnb by offering upscale serviced apartments. With operations in over 40 cities, the firm is now moving toward liquidation as it seeks insolvency in all its markets.
Janice Sears, Sonder’s interim CEO, expressed deep regret, stating, “We are devastated to reach a point where liquidation is the only viable path forward.” She pointed out that unexpected technological challenges delayed the integration with Marriott, causing unexpected expenses.
As guests grapple with cancellations, hotel staff members are also feeling the impact. Rob Goodwin, a former front desk manager at a Sonder property in New York City, shared that communication from management was lacking, leading to confusion for staff and guests alike. Despite the chaos, many guests showed understanding and empathy towards the staff.
Sadly, Goodwin now finds himself unemployed, needing to support his eight-year-old daughter during a challenging time. “It’s too expensive to deal with this right now,” he lamented.
Sonder’s model often involved minimal staffing, making access tricky during this crisis. Many guests complained about not being able to get help retrieving their belongings. Some had signed up because they thought Marriott’s backing offered reliability. Now, feelings of betrayal are widespread among affected travelers.
Several reactions have surfaced on X (formerly Twitter), with one user criticizing Marriott’s response, claiming they wanted to charge him high rates to rebook at Courtyard Hotels. Marriott clarified that while they didn’t charge customers for Sonder bookings, they would coordinate refunds with relevant parties.
In the bigger picture, this incident reveals the risks involved in short-term rental markets and partnerships. As companies navigate financial constraints and technological challenges, it’s clear that consumer trust can easily be shaken in the process.
For more on this topic, you can read about the latest updates from BBC News.
