**Hundreds of Hotel Guests Left “Homeless” After Marriott-Backed Sonder Files for Bankruptcy**
Hotel guests around the world were left stranded after the Marriott-backed rental chain Sonder abruptly filed for bankruptcy, forcing hundreds out of their accommodations with only hours’ notice. The company’s sudden exit has been described as a vacation “nightmare” for many affected travelers.
On Monday, Sonder Holdings Inc. announced an “immediate wind-down of operations” following its Chapter 7 bankruptcy filing. This move initiates the liquidation of its U.S. businesses and the start of insolvency proceedings overseas. The decision comes after Marriott terminated its licensing agreement with the San Francisco-based company on Sunday, citing a default on their August 2024 agreement.
Steve McGraw, a retired tech executive, was in the middle of a 17-day stay at Sonder Battery Park Apartments in New York City’s Financial District. He was there with his wife, daughter, and newborn granddaughter when the company suddenly ceased operations. The family had booked their stay through Marriott and received eviction alerts on Monday, just one week into their trip.
“We ended up spending several thousand dollars more to find a new place,” McGraw lamented to Business Insider. “It was very, very disruptive. They treated us so poorly.” Guests were given until 9 a.m. Tuesday to vacate their rentals, sparking frantic last-minute searches for new accommodations.
In Montreal, another guest captured the fallout in a TikTok video, showing herself dragging luggage through snow after being forced out with little notice. “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 get out of the hotel room we had booked for another three nights,” Avery wrote.
Avery later found another hotel room in the city for $220 a night. Similarly, a travel influencer known as reece.traveling shared his experience on TikTok, stating: “Got kicked out of my hotel today. Total nightmare. Marriott dropped Sonder, so now I’m basically homeless.”
Founded in 2014, Sonder operated approximately 9,000 units worldwide, with key hubs in Denver, San Francisco, Montreal, London, and Amsterdam, according to its now-defunct website. Marriott confirmed it is actively assisting guests who booked through its platform, emphasizing that supporting current and upcoming guests is its “immediate priority.”
“Marriott remains committed to minimizing disruption to guests’ travel plans,” the hotel chain said in an official statement.
News of the Marriott partnership termination and the bankruptcy filing came as a shock to Sonder employees who found themselves unprepared and in the dark while facing frustrated customers. One TikTok user shared their bewilderment after leaving a New York City rental owned by Sonder.
Sonder cited severe financial difficulties as the reason for its collapse, noting “prolonged challenges” following its integration with Marriott beginning in August 2024.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system,” the company explained. “These issues persisted and contributed to a substantial and material loss in working capital.”
Once seen as a strong competitor to Airbnb, Sonder had gone public in 2021 with a valuation near $2.2 billion. However, financial struggles have ultimately led to its downfall.
*With Post wires*
https://nypost.com/2025/11/12/business/marriott-sonder-bankruptcy-leaves-hotel-guests-stranded-homeless/