Marriott Affiliate Sonder's Sudden Bankruptcy Leaves Thousands Stranded in Global Hotel Lockdown
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In a shocking turn of events, thousands of travelers have been left stranded worldwide after Marriott's affiliate Sonder unexpectedly declared bankruptcy, ceasing operations and leaving guests with little notice to vacate their rooms. The short-term rental firm, which had a licensing agreement with Marriott, filed for Chapter 7 liquidation, causing chaos for travelers in over 40 countries. Guests at various Sonder locations, including cities like London, Boston, Montreal, and New York City, received emails or notes with short notice to vacate, with some discovering their belongings packed and left in hallways. Many were forced to find new accommodations at elevated rates, incurring significant expenses. The sudden shutdown was triggered by Marriott's termination of its licensing agreement with Sonder, which had been a rival to Airbnb. Unlike Airbnb, Sonder owned and managed its own properties. A Marriott spokesperson assured that the company is working with affected guests to find alternative accommodations and facilitate refunds for those who booked through Marriott's channels. Sonder's Interim CEO, Janice Sears, expressed her devastation over the situation, citing challenges in aligning their technology frameworks with Marriott's, resulting in significant integration costs and a decline in revenue. As a result, Sonder was left with no choice but to file for Chapter 7 bankruptcy. Travelers took to social media to share their distressing experiences, describing the situation as an 'absolute nightmare.' Many expressed frustration over Marriott's handling of the situation, with some accusing the company of being 'heartless' to its employees and customers. As the situation unfolds, Marriott is working to assist stranded guests, but the sudden bankruptcy has left many without a place to stay and with significant expenses to cover. The incident serves as a reminder of the risks involved in the short-term rental industry, where partnerships and agreements can be easily terminated, leaving guests and businesses alike in a precarious situation.
