Midnight Eviction: Collapse of Billion-Dollar Chain Sonder Leaves Guests Stranded, Luggage Packed in Hallways

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Sonder hotel

NEW YORK/MONTREALโ€”A global travel disaster unfolded over the past weekend as once high-flying hospitality brand Sonder abruptly filed for liquidation, forcing thousands of shocked guests across multiple continents to vacate their rooms mid-stayโ€”in some cases finding their belongings packed and waiting in the hallway.

The chaos was triggered by the sudden collapse of a major partnership with hotel giant Marriott International, which cut its ties with Sonder over the weekend, citing a “default,” and immediately plunging the technology-driven apartment-hotel chain into Chapter 7 bankruptcy.


The Abrupt End: 24 Hours to Vacate

The termination of the licensing agreement between Sonder and Marriott Bonvoy on Sunday, November 9, was the final blow to the cash-strapped company. The move instantly made Sonder’s operations unsustainable, leading to an immediate wind-down and the desperate scramble of mass guest evictions.

  • The Email: Guests at Sonder properties in New York, Montreal, London, and other major cities received emails with the devastating news. The messages gave them as little as 24 hours, and in some cases less, to check out.
  • Physical Ejection: The suddenness led to several shocking scenes. One traveler in Boston returned to his accommodation to find his room door open and his family’s possessions, including laptops and toiletries, packed in plastic bags and left in the hallway. Another guest in Montreal was told they had only “10 to 15 minutes” to gather their belongings before the building was secured.
  • The Cost: Travelers who had prepaid for weeks-long stays were forced to book new, last-minute accommodation at exorbitant rates, adding thousands of dollars to their trip costs. “It was very, very disruptive,” one New York traveler told reporters. “They treated us so poorly.”

Adding to the confusion, many on-site staff reportedly learned they were losing their jobs at the exact same time as the guests, with some employees seen crying as they enforced the eviction orders.

The Failed Marriott Bet

Sonder, which was founded in Montreal and once touting a valuation of nearly $1.9 billion as a competitor to Airbnb, was known for its “premium, design-forward apartments.” Its fate was critically linked to the 2024 partnership with Marriott, which allowed Sonder properties to be booked through the popular Bonvoy reservation system.

In a statement announcing its plan to initiate a Chapter 7 liquidation of its U.S. assets, Sonder’s Interim CEO, Janice Sears, attributed the collapse to the failed partnership:

“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.”

While Marriott stated its “immediate priority is supporting guests” and promised full refunds for customers who booked via its platforms, many stranded travelers have expressed outrage, claiming the hotel giant failed to provide adequate alternative accommodation or compensate them for the steep cost of emergency bookings.

The dramatic, system-wide failure of Sonder serves as a stark warning about the fragility of high-growth tech models reliant on complex, large-scale partnerships in the volatile post-pandemic travel market.

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