Marriott International has recently entered into a long-term licensing agreement with Sonder Holdings, a company specializing in apartment-style accommodations. This partnership is expected to significantly expand Marriott’s inventory, adding over 9,000 rooms by the end of the year, with an additional 1,500 rooms in the works.
Sonder’s properties will be part of a new collection named Sonder by Marriott Bonvoy, which will emphasize apartment-style and boutique hotel accommodations in urban centers. This collaboration will allow Marriott to tap into a new market segment while offering guests a unique lodging experience.
Founded in 2014, Sonder operates in over 45 urban markets across North America, Europe, and the Middle East. The company distinguishes itself with a digital-forward operating model that provides guests with “hotel amenities without hotel formality.” This approach allows guests to seamlessly check-in, make requests, and receive recommendations via their smartphones.
Marriott highlights that Sonder properties are well-suited to cater to various demographics, including younger travelers and those looking for extended stays. Additionally, Marriott Bonvoy members will soon be able to earn and redeem points at around 200 Sonder by Marriott Bonvoy properties, with full integration expected to be completed by 2025.
Despite its recent successes, Sonder has encountered challenges. Earlier this year, the company laid off 17% of its corporate staff, and in April, it received a delinquency notice from Nasdaq. Sonder’s financial woes were exacerbated by accounting errors related to the valuation and impairment of operating lease right-of-use assets, leading to delays in filing its financial results.
In an effort to streamline operations, Sonder announced agreements to exit from 80 buildings this year. The company’s restructuring efforts are aimed at regaining compliance with Nasdaq listing rules and achieving financial stability.
Marriott International’s partnership with Sonder Holdings signals a new era in lodging, with a focus on innovative accommodations and enhanced guest experiences. While Sonder faces challenges in the short term, its collaboration with Marriott offers opportunities for growth and market expansion.