Marriott cancels its license with Sonder, a lodging rental company
Marriott International (MAR.O), a hotel operator, announced on Sunday that its licensing arrangement with Sonder (SOND.O), a lodging rental company, had been terminated because Sonder had defaulted.
When Sonder, a provider of apartment-style lodging, inked a deal with Marriott in 2024, its stock soared.
Over 9,000 Sonder units are anticipated to join the Marriott system by the end of 2024, as part of the agreement that improved Sonder’s liquidity profile by roughly $146 million.
Due to the termination, Sonder is no longer associated with Marriott Bonvoy, according to Marriott, and Sonder properties are not accessible for new reservations through Marriott’s channels.
Marriott stated in a separate statement that it now anticipates 4.5% net room growth for the entire year due to the termination. This is a decrease from last week, when the company reported yearly net room growth of over 5%.
When asked for comment outside of regular business hours, Sonder did not immediately respond.
Offering short-term rentals of renovated residences, the company agreed to go public in 2021 at a price of approximately $2.2 billion. According to LSEG data, its current market value is approximately $6.79 million.
