Carol Tsai found herself in a predicament when she received an email from Sonder instructing her to vacate her London hotel room immediately. Tsai, who had paid for her stay in full and had been exploring the city, was taken aback by the sudden notice.
Guests across various Sonder properties, from New York to France, were similarly asked to leave as the company faced financial issues leading to the termination of its licensing agreement with Marriott. Sonder, known for its short-term rental and boutique hotel units in over 40 cities worldwide, including its founding city Montreal, declared its immediate liquidation.
The announcement of Sonder’s closure came as a shock to both guests and employees. Amina Balde, a front desk worker at Sonder’s Apollon location in Old Montreal, described the moment when they were informed of the bankruptcy, leaving them in disbelief.
Marriott’s decision to terminate its agreement with Sonder due to the latter’s financial default added to the chaos. Sonder, which had anticipated growth through its partnership with Marriott, faced insurmountable financial challenges, including issues aligning booking systems and a significant revenue decline.
Wayne Smith from Toronto Metropolitan University’s Institute for Hospitality and Tourism Management highlighted the financial strains faced by companies like Sonder when aligning with larger entities such as Marriott, emphasizing the difficulty of competing in the hospitality industry against giants like Airbnb and traditional hotels.
As guests scrambled to find alternative accommodations, Marriott prioritized assisting those affected by Sonder’s closure. Tsai, one of the displaced guests, expressed her desire for a full refund and compensation for the inconvenience caused by the sudden turn of events.
With Sonder’s abrupt closure leaving guests stranded, Smith recommended reaching out directly to hotels for immediate assistance, as some establishments might offer discounted rates to attract new clientele during this period of uncertainty.