The global short-term rental market is facing a major disruption: Sonder, a Canadian-founded company with operations in about 40 cities, has filed for bankruptcy. The collapse follows severe financial difficulties, complications with its Marriott agreement, and delays in the integration of booking systems.
“Liquidation is inevitable, and thousands of units will be shut down,” said interim CEO Janice Sears, confirming that the company is effectively ceasing operations after years of positioning itself as a premium Airbnb competitor.
Travelers left without accommodation
Following the bankruptcy announcement, many travelers discovered they could not check into their booked apartments — some were even unable to retrieve their belongings as properties were abruptly closed.
Rob Goodwin, front desk manager at Sonder The Merchant in New York, told reporters:
“System failures and Marriott’s eviction order made it almost impossible to assist guests. I worked 16-hour shifts trying to help, and then lost my job myself.”
Why travelers trusted Sonder bookings
Sonder had a partnership with Marriott, allowing its properties to be booked through Marriott’s official platforms — something that gave guests a sense of security.
But Marriott terminated the agreement after Sonder’s financial issues became unmanageable.
Marriott stated it will:
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support customers who booked through Marriott channels,
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advise all others to request a chargeback through their credit card issuers.
Lack of on-site staff worsened the situation
Most Sonder properties had no on-site staff, relying entirely on door codes and remote management. Once systems failed and codes were disabled, guests found themselves locked out with no assistance available.
About Sonder
Sonder offered furnished, hotel-style apartments across North America, Europe and the Middle East, promoting itself as a hybrid between apartment living and boutique hotel comfort.