Sonder's Sudden Collapse: A Global Travel Crisis
The travel and hospitality sector was jolted by the sudden announcement from Sonder Holdings Inc. on Monday, November 10, 2025. The company declared an immediate wind-down of its operations, filing for Chapter 7 bankruptcy in the United States. This legal move triggers a complete liquidation of its American business and initiates insolvency proceedings for its international operations.
Vacation Plans Shattered for Stranded Guests
The fallout was swift and severe for customers worldwide. The crisis escalated after Marriott International terminated its licensing agreement with the San Francisco-based firm on Sunday. This termination was a direct result of Sonder defaulting on an agreement made back in August 2024.
Guests who had checked into accommodations booked through Sonder found themselves unexpectedly evicted. A former tech executive, Steve McGraw, shared his ordeal with his family, including his wife, daughter, and newborn granddaughter. They were forced to leave their 17-day rental after just one week. "We ended up spending several thousand dollars more to find a new place," McGraw stated. "It was very, very disruptive. They treated us so poorly."
The disruption was not isolated. A guest in Montreal documented her stressful experience on social media, showing herself navigating the city with her luggage after being told to vacate her room with three nights remaining. Similarly, travel influencer ‘Reece.travelling’ claimed he was left "basically homeless" due to the abrupt contract termination between Marriott and Sonder.
From Billion-Dollar Startup to Bankruptcy
Sonder's downfall marks a dramatic turn for a company once valued at over $1 billion and seen as a formidable rival to Airbnb. Its business model involved leasing and managing properties directly, offering apartment-style bookings globally. A key part of its strategy was a licensing deal with Marriott International, which gave Sonder customers access to a portfolio of approximately 10,500 hotel rooms around the world.
With the bankruptcy filing, that access has been completely severed. The company has cancelled all prior reservations, offering no alternative accommodation plans, thereby creating a widespread travel nightmare for its customer base.
