Copyright CBS News
Sonder, a short-term rental company and former Airbnb rival, abruptly went out of business after Marriott ended its licensing deal on Nov. 9 — leaving guests scrambling as they were told to vacate their rooms immediately, according to accounts shared with CBS News and on social media. Paul Strack, 63, visiting Boston from Little Rock, Arkansas, told CBS News he received an email from Marriott on Sunday about his Sonder stay, but he initially mistook it for a scam. The email said that Marriott's agreement with Sonder had ended, and that "we are unable to continue your reservation beyond today." "[W]e are kindly requesting that you check out of the property as soon as you are able," the email read, according to a copy obtained by CBS News. Because he had mistaken it for spam, he ignored it. But on Monday, after exploring Boston and returning to the family's accommodation at the end of the day, Strack found his room's door wide open and his family's belongings packed up and left in a hallway. "Even our dirty clothes and toiletries were packed up, and our laptops were in plastic bags," he told CBS News. Sonder on Monday said it would wind down operations immediately, and that it expects to file for Chapter 7 bankruptcy to liquidate its U.S. assets. The company describes itself as a global operator of "premium, design-forward apartments and intimate boutique hotels serving the modern traveler" that has faced financial challenges related to its agreement with Marriott, which the hotel chain terminated on Sunday. "We are devastated to reach a point where a liquidation is the only viable path forward," Janice Sears, interim chief executive officer of Sonder said in a statement Monday. "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." "We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets," she added. Strack, who said he'd booked Sonder residences in the past, and until recently had enjoyed the experiences, was frustrated by his subsequent interactions with Marriott personnel, which he called "not helpful." Marriott did not immediately respond to CBS News' request for comment on its communications with Sonder guests after ending the partnership. Marriott recommended he stay at a nearby property for the remainder of the family's stay, according to Strack, which he estimated would have cost around $700 a night. Ultimately, the family spent their final night in Boston in the room that they had been kicked out of. "We got back to our room and we stayed in it last night, even though technically we probably were not supposed to," he said.
