Sonder Files Bankruptcy, Evicts Guests Worldwide

Sonder, a San Francisco-based operator of apartment-style hotels, filed for Chapter 7 bankruptcy on Monday, leading to the abrupt eviction of guests from its properties worldwide just one day after Marriott International terminated their licensing agreement. The sudden collapse stranded travelers in cities including Montreal, New York, Dubai, Amsterdam and Denver, forcing many to seek alternative accommodations mid-stay.

The chain of events began Sunday when Marriott announced the end of its partnership with Sonder, citing the company's default on the August 2024 agreement. As a result, Sonder properties were removed from Marriott's booking channels, including marriott.com and the Marriott Bonvoy app. Sonder, which managed short-term rentals and boutique hotels in more than 40 cities, initiated an immediate wind-down of operations, liquidating its U.S. business and starting insolvency proceedings abroad. The company operated around 9,000 units globally, with a focus on urban hubs like Boston, London and San Francisco.

Guests received short notice to vacate, often by 9 a.m. Monday local time. In Montreal, one traveler named Avery documented her frustration on TikTok as she...