Sonder Holdings Inc. has announced the sale of 190 leasehold interests across 17 states, covering its portfolio of luxury boutique hotels, cottages and apartments. The transaction, facilitated by Gordon Brothers, allows buyers to acquire full or partial portfolios, or even a single lease, with offers due by December 30 and subject to court approval as part of the company’s Chapter 7 liquidation process.
The sale follows Sonder’s Chapter 7 bankruptcy filing on November 14, 2025, after the company admitted it had no funding and could not reorganize. The liquidation is a direct response to a series of financial setbacks: a $224 million net loss in 2024, a $31 million net income in Q4 2024, and the termination of a key licensing agreement with Marriott International in early November. These events left Sonder with a deteriorating balance sheet and an unsustainable lease portfolio, prompting the asset divestiture to satisfy creditors and wind down operations.
The 190 locations span 17 states, but the announcement does not break down the mix by property type or state. Nonetheless, the portfolio includes a mix of hotels, cottages and apartments that were previously operated under Sonder’s fully‑furnished model. By selling these leasehold interests, Sonder aims to convert long‑term lease obligations into immediate cash, a critical step in the liquidation plan to pay creditors and close the company’s operations.
Interim CEO Janice Sears said the sale is “a necessary step to address the company’s liquidity crisis and to provide a fair return to our creditors.” The statement underscores that the transaction is not a strategic expansion but a forced divestiture driven by the company’s inability to secure additional financing or restructure its debt. The sale is therefore a direct consequence of Sonder’s financial distress rather than a growth initiative.
Market reaction to the announcement has been muted, reflecting the broader context of Sonder’s bankruptcy and delisting from Nasdaq in October. Investors and creditors are focused on the liquidation proceeds and the timeline for court approval, rather than on any potential upside from the sale. The announcement confirms the company’s exit strategy and signals the end of Sonder’s presence in the hospitality market.
The sale of leasehold interests is a critical component of Sonder’s Chapter 7 plan, providing the liquidity needed to satisfy creditor claims and complete the wind‑down of operations. While the transaction offers a potential exit for investors holding leasehold interests, it also marks the final chapter in Sonder’s attempt to operate as a hospitality platform.
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