For years, Sonder, a collection of boutique hotels and apartments, billed itself as the future of travel stays: a sleek alternative to vacation rental companies like Airbnb and to full-service hotels. Its minimalist apartment-style rooms and self-check-in model appealed to digital nomads and design-minded travelers who wanted the reliability of a hotel with the space, privacy, and ease of a rental.
But this week, the San Francisco–based company abruptly filed for Chapter 7 bankruptcy, halting operations at all its properties and upending plans for guests in 40 cities worldwide.
Now its properties sit in limbo, and travelers are left asking what went wrong—and what happens to their bookings, credits, and points.
The demise of Sonder
Founded in 2012, Sonder grew rapidly by leasing apartment buildings and transforming them into sleek, short-term rentals with hotel-style amenities. The business went public in 2022 during the post-pandemic travel rebound, promising investors a leaner, tech-driven alternative to traditional hotels.
But the cracks began to show shortly afterward, and the brand struggled to turn a profit. Sonder’s partnership with Marriott International—announced in 2024 to integrate Sonder properties into Marriott’s booking system and Bonvoy loyalty program—was supposed to be a lifeline.
However, on November 9, Marriott announced the end of that agreement, stating that Sonder had failed to meet its financial obligations. The following day, Sonder unveiled it was “winding down operations immediately”; it said it expected to initiate a Chapter 7 liquidation of its U.S. business and insolvency proceedings in the other countries—including Canada and those in Europe and the Middle East—in which it operated.
According to the announcement, merging into the Marriott system became a financial and technical quagmire.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system,” Janice Sears, interim chief executive officer of Sonder, stated in the announcement.
Without Marriott’s distribution power and with cash reserves nearly depleted, Sonder said it had little choice but to liquidate.
Sonder operated properties in several major European cities, including Rome.
Courtesy of Sonder
What Sonder’s closure means for travelers
If you have a current or future reservation with Sonder, your next move depends on how you booked.
In a statement, Marriott International said that its “immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations.” However, reports suggest that some travelers have been told to vacate properties with little notice.
Emails from Marriott Bonvoy reportedly told current guests who booked through its site that Marriott was “unable to continue your reservation beyond today, and we are kindly requesting that you check out of the property as soon as you are able.”
If you’re midtrip
If you booked through Marriott, you’re likely in better hands when it comes to rebooking. Marriott has already said it will refund the remaining portion of guests’ stays and that its Customer Care team is prepared to work with guests to secure alternative accommodations. However, the hospitality giant didn’t say if those new stays would be complimentary or discounted if the new hotel was more expensive than the originally booked Sonder stay, nor did it say whether it would offer any compensation to affected customers.
Those who booked directly with Sonder should reach out immediately to request a chargeback (a reversal of a transaction that a customer initiates by disputing the charge) and alternative stays, but be prepared for limited responses as operations wind down. If you booked through another online travel agency (like Expedia or Booking.com), you should likewise reach out immediately, as it will be your point of contact for cancellations and refunds. Because Sonder is no longer operating, the online travel agency may be able to rebook you elsewhere or issue a refund from its own system, but act quickly, and keep documentation of your original reservation in case you need to file a claim later.
If you purchased travel insurance or have a yearly policy, check the fine print for coverage related to supplier bankruptcy or default. Not all plans include it, but some premium travel-insurance policies do.
Lauren Gumport, vice president of communications at Faye Travel Insurance, said, “If Sonder’s financial default interrupts a stay, causing a guest to unexpectedly cut their trip short, it could trigger trip interruption coverage.”
Depending on the insurance carrier, it includes up to a certain percentage of a policyholder’s nonrefundable trip costs, including additional transportation expenses required to get home early.
“We’ve seen plenty of examples where customers use the reimbursement provided for trip cancellation or trip interruption in a scenario like this one to rebook accommodation with other providers,” Gumport said.
Whether you’ll get assistance in finding other accommodation depends on the level of customer support your travel insurance provides.
“Generally the policy would need to cover supplier insolvency, and that will depend on the policy wording,” said Michael Reay, vice president of operations at Cranky Concierge, a company that specializes in urgent air travel assistance. “That may or may not include finding alternative accommodations but likely will just make you whole—meaning if an alternative is more expensive, that’s too bad.”
If your trip hasn’t started yet
Travelers with future bookings should assume they won’t be honored and should request a refund or rebooking from the platform through which they made their reservation. Marriott has said it will “provide support in facilitating the refund process that you initiate” for all prepaid fees, but recommends “that you contact your credit card issuing bank to initiate a refund request to ensure your refund is accurately recorded.”
To be refunded to your credit card, call your issuer to learn about “supplier insolvency” protections, or file for a chargeback, if necessary. Refunds typically have time limits, so it’s best to act fast.
For those who used points to book their Sonder stay, getting them back depends on how they were redeemed. If you booked through your card’s travel portal (like Chase Travel or Capital One Travel), you’re usually protected, as those portals act as intermediaries—meaning if the hotel cancels your stay, the issuer can typically reinstate your points or refund the equivalent cash value. Contact the travel-rewards support line to start the process. If your points came from Marriott Bonvoy (or were transferred to Marriott Bonvoy), Marriott has already said it will work directly with affected guests to refund points.
If you made reservations through a booking platform or credit-card travel service, it’s a good idea to reach out to that service to get help securing new accommodations; it can often expedite rebookings or provide comparable options nearby. If you’re traveling during a busy period, lock in a replacement stay as soon as possible to avoid limited availability or price spikes.
