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A dispute between a pair of global hospitality companies left travelers worldwide without a place to stay. According to multiple reports, guests were given almost no warning that their reservations were being canceled and received little help from either chain involved in the dispute. The ordeal began Sunday when the hotel chain Marriott International announced it was ending an agreement with short-term rental firm Sonder Holdings Inc. The agreement, signed in August 2024 allowed for Sonder to advertise its inventory on the Marriott website, according to the New York Times. According to Marriott, the deal is "no longer in effect due to Sonder’s default." In statement released Monday by Sonder, the company said that after the agreement was canceled it attempted to secure financing to continue operations. When those efforts failed, the company decided to shutter operations. Sonder is expected to soon initiate a Chapter 7 liquidation of its U.S. business, and make similar moves for its international properties. The decision to close operations left an unknown number of Sonder guests without a place to stay as their reservations were immediately canceled. Connie Yang told CNBC that she had a New York City stay scheduled from Nov. 7 through Nov. 19 at Sonder’s Battery Park location. However, on Sunday, she was told via email that she had to vacate the hotel by 9 a.m. the next day. “The entire building was asked to vacate,” Yang said, before later adding, “people were scrambling to leave before they locked down the building.” Juan Ávalos Méndez told The Times he was three days into a 12-day trip in Amsterdam when he received word he had to vacate. The notice said staff would be able to assist and answer questions, but Ávalos Méndez said that wasn’t the case. Joan Lee, whose four-day stay in Rome scheduled for after Christmas was canceled, told The Times she’s also received no help from Marriott. Although her trip has been refunded, comparable stays are nearly double what she originally paid. Lee said Marriott did not offer any credit or discount to bring down that price. A man staying at a Sonder property in Boston said he returned to his room to find his belongings in a hallway in plastic bags, according to CBS News. Paul Strack, of Little Rock, Arkansas said he thought the email was spam when he saw it Sunday and left his room Monday for a day in the city. When he returned, he found out the email was legit. “Even our dirty clothes and toiletries were packed up, and our laptops were in plastic bags,” Strack said. In its statement, Marriott said it is prioritizing its customers as part of the situation. “Marriott’s immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations. Marriott will be contacting guests who booked directly through Marriott channels, including marriott.com, the Marriott Bonvoy App and Marriott’s worldwide reservation centers, to address their reservation and booking needs," reads part of the statement. “Guests who booked through a third-party online travel agency should contact those organizations. Marriott remains committed to minimizing disruption to guests’ travel plans.” Sonder did not address guest issues in its statement.
