In a surprising and abrupt move, Marriott International announced that its licensing agreement with Sonder Holdings Inc. is officially terminated, effective immediately. The partnership, which was positioned to be Marriott’s major entry point into the apartment-style and short-term rental sector, has come to a sudden halt, with Marriott citing a “default” by Sonder as the reason.
The termination marks the end of the short-lived Sonder by Marriott Bonvoy collection and has immediate implications for investors, travelers, and the competitive landscape of the global hospitality industry.
The Quick End to a Strategic Partnership
The agreement, originally announced in 2024, was expected to integrate over 9,000 Sonder units into the Marriott system, offering Bonvoy members apartment-style accommodations in prime urban destinations. For Sonder, the deal provided massive exposure and access to Marriott’s global sales and loyalty engine.
Marriott, however, stated that the licensing agreement is no longer in effect due to Sonder’s default. While the specifics of this default remain confidential, the impact is swift and clear:
- Sonder properties are immediately removed from Marriott’s distribution channels, including Marriott.com and the Marriott Bonvoy App.
- Sonder is no longer affiliated with Marriott Bonvoy, meaning the ability to earn and redeem points, or utilize elite benefits, on Sonder stays is gone.
The partnership was intended to rival offerings from other platforms like Airbnb and Vrbo, with the backing of a major hotel chain’s trust and loyalty program. Its collapse highlights the potential complexities and financial challenges of blending the traditional hospitality model with the tech-focused, asset-heavy short-term rental model.
Marriott Updates Financial Outlook
Following the termination, Marriott issued a financial outlook update. The good news for Marriott investors is that the impact is largely contained and primarily affects one growth metric: net rooms growth.
Marriott confirmed that all other financial outlook metrics (like RevPAR growth, adjusted EBITDA, and cash flow expectations) remain unchanged from the company’s previously stated guidance.
- Revised 2025 Net Rooms Growth: Expected to approach 4.5%.
- Previous 2025 Net Rooms Growth: Was expected to approach 5% (with the Sonder rooms included).
The reduction in the expected growth rate is simply the mathematical removal of the Sonder properties from Marriott’s future pipeline. It indicates that the core business of Marriott’s traditional hotel brands remains healthy and on track.
What This Means for Bonvoy Members
The biggest disruption is for guests who had existing or future bookings at Sonder properties made through Marriott channels, or for those planning to use their Bonvoy points.
| Traveler Impact | Detail |
| Existing Bookings | Marriott is prioritizing guests with current stays or upcoming reservations booked through Marriott channels. They will be contacting these guests directly to address reservation and booking needs, including finding alternative accommodations. |
| Bonvoy Points | You can no longer earn or redeem Marriott Bonvoy points for new bookings at Sonder properties. |
| Elite Status | No elite benefits (like complimentary breakfast, upgrades, or late checkout) will be offered on Sonder stays. |
| Third-Party Bookings | Guests who booked Sonder properties through an Online Travel Agency (OTA) must contact that OTA directly. |
Marriott’s commitment is to minimize disruption to guests who relied on the brand to facilitate their travel plans.
The Future of Alternative Stays for Marriott
The abrupt end of the Sonder agreement is a cautionary tale, but it doesn’t mean Marriott is abandoning the alternative accommodations market entirely. Marriott still operates its successful Homes & Villas by Marriott International platform, which acts as a curated marketplace for premium and luxury home rentals.
This platform, which is also integrated into Bonvoy, uses a different, less risky business model than the direct licensing arrangement with Sonder.
The question now is whether Marriott will seek another large-scale partner in the short-term rental space or focus its growth efforts squarely on its traditional hotel portfolio and the organically growing Homes & Villas platform. For now, the focus is clearly on the latter.
