In a statement<\/a> published Sunday, Marriott said the 20-year licensing agreement was “no longer in effect,” citing Sonder’s “default” as the reason.<\/p>\n In its own statement on Monday, Sonder said it made “comprehensive efforts” to improve the company’s finances following Marriott’s announcement, to no avail.<\/p>\n “In light of these unsuccessful efforts and [Sonder’s] financial condition, the Board of Directors made the difficult decision to wind-down operations and pursue a court-supervised liquidation of the U.S. business immediately,” the statement<\/a> read.<\/p>\n Janice Sears, Sonder’s interim chief executive officer, said technical integration problems with Marriott’s Bonvoy website caused “significant, unanticipated integration costs, as well as a sharp decline in revenue”.<\/p>\n “We are devastated to reach a point where a liquidation is the only viable path forward,”\u00a0Sears added.<\/p>\n The one-time unicorn, which was valued<\/a> at $1.9 billion at its IPO, said it plans to file insolvency proceedings abroad too.<\/p>\n The company, which operates in 40 cities worldwide, was billed as a blend between Airbnb and hotels, offering long-term stays in tech-enabled properties popular with remote workers. The company operated many hotels via long-term leases, resulting in an “asset-heavy” strategy that many in the hospitality space now avoid.<\/p>\n ‘People were scrambling’<\/p>\n Sonder hotel guests that CNBC spoke to said they were caught off-guard by the news, with some saying they were ordered to vacate their hotel rooms with less than 24 hours’ notice.<\/p>\n One traveler, Connie Yang, told CNBC that she pre-paid for a stay at Sonder Battery Park in New York from Nov. 7 to Nov. 17.<\/p>\n On Sunday, Nov. 9, she received an email saying she had to vacate the hotel by 9 a.m. the next day, she said.<\/p>\n “The reason stated was the end of a licensing agreement between Sonder and Marriott,” she said. “The entire building was asked to vacate.”<\/p>\n “My neighbor is helping her husband through cancer therapy, and they have paid for the month,” she added. “It is beyond comprehension.”<\/p>\n She also recounted finding some of Sonder’s onsite staff in tears as “they knew nothing.”<\/p>\n On Monday morning, “people were scrambling to leave before they locked down the building,” she said.<\/p>\n![\"Sonder](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/11\/108224064-1762852461051-1762851575-42501979980-hd.jpg\")
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