Marriott Ends Sonder Partnership: What It Means for Guests, Investors, and the Hotel Industry

Marriott’s Termination of Sonder Partnership: A Turning Point for Both Companies

In a move that sent ripples across the hospitality and travel industry, Marriott International announced on November 10, 2025, that it has ended its licensing agreement with Sonder Holdings. The decision came after Sonder defaulted on the terms of their deal, marking a significant setback for the rental firm and prompting Marriott to revise its own growth projections for the coming year.

Signed in August 2024, the Marriott-Sonder partnership was initially hailed as a strategic innovation. The plan was to integrate Sonder’s unique apartment-style accommodations and boutique hotels into Marriott’s global portfolio, specifically under the “Sonder by Marriott Bonvoy” collection. The arrangement was set to bring over 9,000 Sonder units into Marriott’s distribution channels before the end of 2024, with another 1,500 units expected later. Both companies anticipated that the collaboration would generate new revenue streams and operational efficiencies.

Immediate Impact on Guests and Bookings

With the termination now official, Sonder properties have been removed from all Marriott booking platforms, including Marriott.com, the Bonvoy app, and Marriott’s reservation centers. New reservations for Sonder locations via Marriott channels are no longer possible. Customers who have booked stays at Sonder properties through Marriott will be contacted directly by Marriott’s customer service team for support regarding their reservations. Travelers who made arrangements via third-party travel agencies have been advised to seek assistance from those agencies.

Marriott’s swift response reflects the company’s focus on minimizing disruptions for its guests. For those with upcoming or current bookings at Sonder properties, Marriott is offering direct support and guidance. The company’s customer service is fielding inquiries to help clarify any confusion about existing reservations or alternatives.

Financial Repercussions and Strategic Outlook

The fallout from Sonder’s default has led Marriott to adjust its net rooms growth forecast for 2025. The company now expects net room growth to be about 4.5%, down from its previous target of 5%. This revision, while modest, underscores the tangible impact of Sonder’s exit on Marriott’s expansion plans.

Despite this setback, Marriott’s financial health remains robust. The company reported a non-GAAP earnings per share (EPS) of $2.47 and revenue of $6.49 billion in the most recent quarter, both exceeding analysts’ expectations (GuruFocus). Marriott’s Altman Z-Score of 3.65 and Piotroski F-Score of 7 indicate strong financial stability. The company’s extensive brand portfolio, comprising 1.7 million rooms across 30 brands, positions it as a formidable player in the global travel and leisure sector.

Managed and franchised properties represent 98% of Marriott’s total rooms, with North America accounting for 62% of the inventory. The company’s business model, which relies heavily on managed, franchise, and incentive fees, has proven resilient even in the face of industry volatility.

Sonder’s Struggles and the Wider Industry Context

For Sonder, the loss of Marriott’s partnership is a major blow. The rental firm has faced ongoing financial difficulties, including flagged “going-concern” risks last year. The termination not only removes Sonder’s properties from Marriott’s global reach but also severs access to the influential Bonvoy loyalty program, a platform that could have significantly boosted Sonder’s visibility and bookings.

The broader hotel industry is grappling with shifting demand patterns and economic uncertainty. Marriott’s third-quarter data shows global revenue per available room (RevPAR) increased by just 0.5%, with international markets such as Japan, Australia, and Vietnam posting stronger growth. In contrast, the US and Canada saw a 0.4% decrease in RevPAR, driven by weaker demand in lower-tier hotels and a drop in government travel. Luxury hotels, however, have bucked the trend, with a 4% rise in RevPAR thanks to steady demand and higher rates (Hotel Management Network).

Investor Sentiment and Market Dynamics

While the termination of the Sonder agreement prompted a downward adjustment in Marriott’s growth outlook, investor sentiment remains generally positive. Marriott’s market capitalization stands at $78.13 billion, and its stock continues to attract attention. Technical indicators such as an RSI of 69.72 suggest the stock is nearing overbought territory, but moving averages point to a stable upward trend.

Analysts caution, however, that the travel industry’s cyclical nature—and Marriott’s beta of 1.35—means the company is more volatile than the broader market. Geopolitical events, economic downturns, and shifts in consumer preferences all pose risks that investors must weigh.

What’s Next for Marriott and Sonder?

For Marriott, the focus is now on strengthening its core brands and leveraging its luxury and premium segments, which have shown resilience amid economic headwinds. The company’s managed and franchised model, combined with its global reach, provides a strong foundation for future growth—even as expansion targets are recalibrated.

Sonder, meanwhile, faces an uncertain path. Without the backing of Marriott’s distribution and loyalty infrastructure, Sonder will need to reassess its strategy, seek new partnerships, and address its financial vulnerabilities. The competitive landscape for alternative accommodations remains fierce, with major hotel chains and independent operators vying for market share.

For guests, the immediate concern is clarity and support regarding their bookings. Marriott’s commitment to proactive communication and customer service may help preserve trust during this transition.

Assessment: The Marriott-Sonder split is more than just a failed partnership—it’s a reflection of deeper pressures in hospitality, where innovation and integration face the realities of financial sustainability. Marriott’s ability to absorb setbacks while maintaining strong fundamentals highlights its leadership, but the episode underscores the risks of rapid expansion and the fragility of newer market entrants like Sonder. As the industry recalibrates, adaptability and operational discipline will define which companies thrive.