Airbnb Rival Sonder’s Collapse Ends Marriott Deal, Leaves Guests Stranded

Benzinga

Sonder filed for Chapter 7 bankruptcy after Marriott terminated a 20-year licensing deal over financial default. Once valued at $1 billion, the Airbnb-style startup collapsed amid pandemic losses and stranded guests as Marriott moved to manage the fallout.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:03Sonder has filed for Chapter 7 bankruptcy and ceased operations after its partnership with

00:07Marriott collapsed, according to CNN. Marriott ended its planned 20-year licensing agreement

00:13with Sonder due to the company's financial default, according to a company statement on

00:18Sunday Sonder, once valued at $1 billion and seen as an Airbnb rival, aimed to blend hotel

00:24convenience with Airbnb-style stays through its digital check-in system. However, pandemic

00:29losses and a weak public market performance undermined the company, leaving it dependent

00:34on Marriott's platform for recovery. Social media posts describe guests stranded mid-stay

00:39at Sonder Properties, with many blaming Marriott for the disruptions Marriott said it has been

00:44closely monitoring Sonder's financial issues and is contacting guests and third-party

00:48platforms to resolve booking problems. For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended