An “immediate wind-down of operations” announced by Sonder Holdings on Monday, following its Chapter 7 bankruptcy filing, quickly turned into a nightmare for guests staying at the company’s properties.
Many reported being abruptly “kicked out” and left scrambling to find alternative accommodation, while others who had made reservations said they faced difficulties securing refunds after their bookings were cancelled.
The shock came a day after Marriott International said it had terminated its licensing agreement with Sonder, effectively ending the San Francisco-based company’s last major corporate partnership.
‘Evicted in the middle of the night’
Videos shared on social media showed stranded guests hauling their luggage through snow and city streets after being told to vacate their rooms.
A TikTok user named Avery posted a video from Montreal, saying she was forced to leave a Sonder property with three nights remaining in her stay.
“POV: 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,” she wrote.
Avery said she had to pay $220 a night for a new hotel room.
I feel like a class action lawsuit with an 8 figure penalty would make @Marriott think twice before evicting paying guests in the middle of the night.
It’s not guests’ fault that Marriott was too stupid to keep tabs on Sonder’s VERY EASILY TRACKABLE IMPLOSION.
In Boston, business owner Paul Strack described returning to his Sonder apartment to find his belongings packed up and moved into the hallway.
“They handled all our personal belongings, toiletries, clothing, computers, electronics,” he told Business Insider.
“Some they packed into suitcases, and some they put in plastic bags. It was quite shocking and very impersonal.”
Guests said they were left with few options, often paying hundreds or even thousands of dollars for last-minute bookings.
Refund delays and confusion deepen frustration
While some guests were not evicted, many found themselves locked in a frustrating battle to get their money back.
“No sign of a refund as Sonder Marriott cancelled my upcoming reservation and no answer from their hotline,” one user wrote on X.
“I’m lucky not to be one of the guests who got evicted on Monday, but how are we supposed to find accommodations without getting our money back?”
Adding insult to injury was Marriott’s note to customers on Tuesday, saying those who had made a Sonder reservation through Marriott channels should “contact your credit card issuing bank to initiate a refund request.”
If you made your reservation for a Sonder property that was booked through Marriott channels, including marrbnvy.com/60127VxK2, Marriott Bonvoy Mobile App, the Customer Engagement Center, and Fliggy, we recommend that you contact your credit card issuing bank to initiate a
Marriott said it was working to assist guests who had booked through its Bonvoy website.
“Marriott’s immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations,” the company said, adding that it aimed to minimise disruption to travellers.
Employees were laid off overnight
Sonder’s employees were reportedly unaware of the timing of the bankruptcy filing and found themselves confronting angry guests with little information.
One TikTok user claiming to be a Sonder staff member said workers were “completely blindsided” and instructed to close down operations on short notice.
Sonder defaulted so Marriot immediately cut ties which affected not only hotel guest that booked reservations through them but all Marriot employees via Sonder lost their jobs overnight before the holiday with no explanation, no warning & no severance. 🥹
The Chapter 7 filing came just one day after Marriott’s decision to terminate its 20-year licensing deal, citing Sonder’s “default” under the agreement.
From high hopes to hard fall
Once valued at $1.9 billion when it went public via a SPAC merger in 2022, Sonder had been struggling to regain financial stability after the pandemic devastated the travel industry.
The company’s business model—leasing properties long-term and then subletting them to travellers—proved difficult to sustain as costs rose and occupancy rates fluctuated.
In a statement, Sonder’s interim CEO Janice Sears said technical integration problems with Marriott’s Bonvoy platform had caused “significant, unanticipated integration costs, as well as a sharp decline in revenue.”
She added, “We are devastated to reach a point where a liquidation is the only viable path forward.”
Sonder said it plans to initiate insolvency proceedings internationally as well.
The company, which operated in 40 cities worldwide and billed itself as a hybrid between Airbnb and traditional hotels, leaves behind thousands of stranded guests and employees—marking a grim conclusion to what was once one of the travel industry’s most promising disruptors.
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