Vacation nightmare! Sonder guests left stranded as hotel firm abruptly went out of business after Marriott fallout

Hotel rental company, Sonder's announced that the firm is winding down its operations, effective immediately. This has reportedly left the guests checked in with Marriott hotels stranded, as the licensing deal with the chain was terminated.

According to a report from the news portal NewYorkPost, Sonder Holdings on Monday, 10 November 2025, announced an ‘immediate wind-down of operations’ as the firm filed for a Chapter 7 bankruptcy, which will start a liquidation of the company's business in the United States and the insolvency proceedings overseas.

Marriott Hotels terminated its licensing agreement with the San Francisco-based company, Sonder's on Sunday after the company defaulted on its August 2024 agreement.

Vacation nightmare for guests

Guests cited in the news agency's report mentioned that they were kicked out of their rental accommodations as a result of the company abruptly going out of business.

A former tech executive, Steve McGraw, and his family, comprising his wife, daughter, and newborn granddaughter, were evicted from the rental of 17 days just after a week of their stay.

“We ended up spending several thousand dollars more to find a new place,” McGraw told the news portal. “It was very, very disruptive. They treated us so poorly,” he said.

Another guest in Montreal also recorded herself going around the city with her luggage after the company's breakup with Marriott Hotels.

“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 and told us to gtfo of the hotel room we had booked for another three nights in Montreal,” according to a TikTok post cited in the news portal's report.

Other guests and travel influencers like ‘Reece.travelling’ claimed that he has become homeless due to the sudden termination of the contract by Marriott.

“Got kicked out of my hotel today… total nightmare,” he said on TikTok, according to the news report. “Marriott dropped Sonders, so now I’m basically homeless.”

Once $1 billion valuation, now bankrupt

According to a news report from the Daily Mail, Sonder hotels, once valued as a $1 billion company and a rival to Airbnb, is now knocking at the door of bankruptcy after Marriott International terminated its licensing deal, which made the company force close its operations with immediate effect.

Sonder allowed its customers to book apartments around the world, just like how Airbnb operates its business, but with a key difference that it leases and manages the properties on its own.

Part of the licensing deal with Marriott International, the platform allowed its customers to book one of the 10,500 hotel rooms across the world. However, after the company filed for bankruptcy, the Sonder customers who book their stays with the platform were evicted and ordered to vacate the properties on an immediate basis.

From cancelling prior reservations to having no plans of accommodation for the customers of Sonder around the world, faced a travel nighmare as the company filed for Chapter 7 bankruptcy in the United States.