Marriott Terminates Sonder Partnership After Default, Revises Growth Forecast

Marriott International has ended its licensing agreement with Sonder Holdings Inc. The termination was announced on November 10, 2025. It follows Sonder’s default on the partnership terms.

The move forces Marriott to adjust its future growth outlook. It also removes thousands of Sonder properties from the Bonvoy loyalty program.

Immediate Fallout for Travelers and Bookings

All Sonder properties are now delisted from Marriott’s channels. This includes the Marriott website and Bonvoy app. No new bookings can be made.

Marriott is directly contacting affected guests. The company is assisting with existing reservations. Third-party bookers must contact their booking agent.

The partnership, signed in August 2024, was meant to add over 9,000 units. These apartment-style stays were to be marketed as “Sonder by Marriott Bonvoy.” The arrangement promised new revenue for both firms.

Financial Revisions and Market Impact

Marriott has revised its 2025 net room growth forecast downward. The new projection is approximately 4.5%. This is a half-point drop from the previous 5% target.

Despite this, Marriott’s core financial health appears strong. According to Reuters, the company recently reported earnings that beat analyst expectations. Its extensive brand portfolio provides a solid buffer.

Sonder’s financial struggles were a known factor. The company had previously flagged “going-concern” risks. Losing the Marriott distribution is a significant setback for its business model.

Broader Hospitality Industry Context

The termination reflects wider volatility in the travel sector. Demand patterns are shifting post-pandemic. Economic uncertainty affects budget and luxury segments differently.

Data from the Associated Press shows luxury hotel performance remains robust. However, lower-tier and business travel has softened. This bifurcation is challenging for large operators.

Marriott’s reliance on a managed and franchised model mitigates some risk. The company operates over 1.7 million rooms globally. Its diverse portfolio helps stabilize performance.

The termination of the Marriott and Sonder partnership underscores the precarious nature of new hospitality ventures. For Marriott, the financial impact is manageable, but the strategic setback is real. The event highlights the critical importance of financial stability in long-term corporate alliances.

Thought you’d like to know

What should I do if I booked a Sonder stay through Marriott?

Marriott is proactively contacting guests with affected bookings. You should wait for their direct communication. They will provide alternative options or refunds.

Will I earn or redeem Bonvoy points for my Sonder stay?

No. All Sonder stays are now completely disconnected from the Marriott Bonvoy program. Points cannot be earned or redeemed for any Sonder reservation.

How does this affect Marriott’s overall financial health?

Analysts see the impact as limited. Marriott’s recent earnings reports have been strong. The company’s diversified portfolio is expected to absorb this setback.

What happens to Sonder now?

Sonder loses a major distribution partner and must navigate its financial challenges alone. The company will need to find new ways to attract guests and reassure investors about its future.

Why did Marriott partner with Sonder in the first place?

The partnership was a strategic move to tap into the growing alternative accommodation sector. Marriott aimed to offer more variety to its loyalty members and compete with rental platforms.

Trusted Sources

Reuters, Associated Press, Hotel Management Network, GuruFocus