Marriott International announced on November 9 2025 that it has terminated its licensing agreement with Sonder Holdings Inc. The termination was triggered by a default on Sonder’s part, ending the partnership that had allowed Sonder properties to appear on Marriott’s booking channels and to be part of the Marriott Bonvoy loyalty program.
The immediate operational impact is the removal of all Sonder rooms from Marriott’s system. New bookings for Sonder properties are no longer available through Marriott.com, the Marriott Bonvoy app, or Marriott’s reservation centers. Marriott is actively contacting guests who booked through its channels to offer alternative accommodations or refunds, and is working with third‑party travel agencies to ensure a smooth transition for affected travelers.
Financially, Marriott has revised its 2025 net‑rooms growth outlook to 4.5 percent, a slight decline from the prior guidance of approximately 5 percent that was issued earlier in the year. The adjustment reflects the loss of Sonder’s 600‑room inventory, which represented a small but non‑negligible portion of Marriott’s projected growth. Other outlook metrics—such as revenue guidance, gross fee growth, and adjusted EBITDA—remain unchanged, indicating that Marriott’s core hotel portfolio is expected to drive the bulk of its performance.
Sonder’s default appears to stem from financial distress. In the last 12 months, Sonder reported revenue of $589.13 million but a net loss of $328.85 million, and it received a Nasdaq deficiency notice for failing to file timely reports. The combination of a large operating loss and regulatory compliance issues likely contributed to the default that prompted Marriott to terminate the agreement.
Strategically, the move signals Marriott’s continued focus on its core brands and its asset‑light business model. By eliminating exposure to a non‑hotel brand that was not fully integrated into its loyalty program, Marriott reduces operational complexity and licensing risk. The decision aligns with the company’s broader strategy of prioritizing high‑margin hotel operations and maintaining a streamlined portfolio.
No significant market reaction has been reported in the available sources. The announcement appears to be a routine adjustment to Marriott’s guidance rather than a catalyst for a major shift in investor sentiment.
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