Bankruptcy Declared Immediately After Ending Partnership with Marriott Hotel Group
"Brand Alliances and New Platforms Are Not a Solution"
Global accommodation sharing platform Sonder has abruptly declared bankruptcy, causing chaos as guests around the world are being forced to vacate their rooms in the middle of the night.
On November 13 (local time), the BBC reported that Sonder filed for bankruptcy in a US court on November 11, just after ending its partnership with Marriott Hotel Group, and has entered default proceedings for its global business. As the company initiated bankruptcy proceedings in all regions where it operated, all of its rooms have been closed.
Sonder, a lodging sharing startup founded in Montreal, Canada, operated boutique hotels and serviced apartments in over 40 cities. After signing a partnership with Marriott in August last year and expanding its accommodation booking and operations earlier this year, it emerged as a rival to existing accommodation sharing companies such as Airbnb.
However, Sonder faced financial difficulties due to its failure to integrate systems with Marriott and a decline in bookings. When its lease agreement with Marriott was terminated on November 9, the company ultimately declared bankruptcy.
The problem is that travelers are suffering losses as their accommodations have suddenly disappeared due to the abrupt bankruptcy. On the US online community Reddit, one user complained, "My luggage is in the room, but the password no longer works, so I can't get in." Another user shared their experience of wandering the streets with their bags in search of another place to stay.
Many customers who used Sonder said, "We booked with Sonder because we felt we had the guarantee of a global brand like Marriott," and expressed anger, saying, "We feel betrayed."
Sonder employees are experiencing the same confusion. Rob Goodwin, the front desk manager at Sonder The Merchant Hotel in Lower Manhattan, suddenly lost his job. He said, "A guest came and showed me an email from Marriott stating that they had to vacate their room by the next morning," adding, "My colleagues and I were unable to grasp the situation for quite some time."
Regarding this, Marriott stated, "We have terminated our partnership agreement due to Sonder's default," and announced that refunds would only be provided to customers who booked through its own platform. However, customers who booked accommodations through other channels such as online travel agencies were instructed to request refunds individually from their credit card companies or travel agencies. Critics point out that guests who booked through other platforms have essentially been left stranded.
Sonder once achieved a corporate value of over 2 trillion won and experienced rapid growth, but just before bankruptcy, its stock price plummeted to $0.20 per share. Experts commented on Sonder's sudden bankruptcy, saying, "While a partnership with a premium hotel brand can boost consumer trust in the short term, this incident shows that it does not fundamentally resolve the structural risks faced by emerging accommodation platforms."
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