Marriott Pays $23M to End Romance with Sonder, Guests Pay for Heartbreak
KEY POINTS
- •In November, Marriott ended its deal with Sonder and took a $23 million hit for licensing and termination fees.
- •Guests at Sonder properties were abruptly told to vacate, facing high costs and refunds redirected through credit card companies.
- •Sonder filed for Chapter 7 bankruptcy after the split, while Marriott reported strong revenue growth in the following quarter.
In a breakup that’s so costly it belongs in a soap opera, Marriott dunked $23 million down the emotional drain terminating its licensing agreement with Sonder. This luxury short-term rental app, once proudly flying the Airbnb-rival banner since 2014, filed for Chapter 7 bankruptcy quicker than the morning coffee gets cold. Guests booking Sonder properties got the ultimate surprise party in November when Marriott abruptly told them to vacate, scrambling their vacations and wallets alike. Marriott’s finance chief Leeny Oberg casually called the $23M 'one-time,' ignoring the moral bankruptcy faced by stranded guests and fired Sonder workers who found job loss news on TV. Meanwhile, Marriott flexed robust earnings – $6.69 billion in revenue, up 4% year-on-year – proving it’s possible to walk away richer even when you leave people ruined.
Share the Story
Marriott burned $23M ditching Sonder and dodged refunds by directing stranded guests to their credit card companies. Hospitality so warm, it’s practically a Texas BBQ.
When Marriott boots guests last-minute and blames credit cards, you know travel's just a trust exercise gone horribly wrong.
A corporate breakup so messy it’s got more plot twists than a daytime soap—and costs almost as much.
Source: Businessinsider | Published: 2/11/2026 | Author: Aditi Bharade
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