Airbnb rival Sonder abruptly shuts down, orders guests to leave: “Our laptops were in plastic bags”

Sonder, a once-promising short-term rental company that was seen as a potential rival to Airbnb, recently made headlines as it suddenly went out of business. The abrupt closure came after Marriott International terminated its licensing deal with Sonder on November 9, leaving guests in a state of chaos as they were instructed to vacate their rooms immediately. The situation was shared on social media platforms and recounted by affected individuals, including Paul Strack, a traveler from Little Rock, Arkansas.

Strack received an email from Marriott informing him of the termination of the agreement with Sonder. Initially dismissing it as a scam, he later realized the seriousness of the situation when he returned to his accommodation in Boston to find his room open and his belongings packed up in the hallway. Even their laptops were placed in plastic bags, along with their dirty clothes and toiletries.

On the same day, Sonder announced that it would cease operations immediately and is planning to file for Chapter 7 bankruptcy to liquidate its U.S. assets. The company, known for its premium apartments and boutique hotels catering to modern travelers, cited financial challenges stemming from its partnership with Marriott as the primary reason for the sudden closure.

Janice Sears, the interim CEO of Sonder, expressed deep regret over the necessity of liquidation, attributing it to the delayed integration with Marriott and unforeseen costs associated with the partnership. Despite exploring various alternatives to salvage the situation, the company was left with no choice but to wind down its operations.

In the aftermath of Sonder’s closure, affected guests like Strack found themselves in a difficult position. Marriott suggested alternative accommodations at a nearby property, which would have incurred a substantial nightly cost. Ultimately, Strack and his family spent their final night in Boston in the room they were asked to vacate, as they found themselves in a challenging situation with limited options.

Marriott has yet to respond to inquiries regarding their communication with Sonder guests post-termination. Strack expressed frustration over the lack of assistance from Marriott personnel during this tumultuous time. The situation sheds light on the challenges faced by both guests and companies in the rapidly evolving hospitality industry.

As the dust settles on Sonder’s sudden closure, the repercussions of this event serve as a cautionary tale for both guests and businesses in the short-term rental sector. It underscores the importance of transparency, communication, and contingency planning in navigating unforeseen circumstances in the ever-changing landscape of the travel and accommodation industry.