Marriott Abruptly Terminates Sonder Partnership: What Happened and What It Means for Points Collectors

In a surprise move that's sent shockwaves through the loyalty programme community, Marriott International announced on 9 November 2025 that it has immediately terminated its licensing agreement with Sonder Holdings. The partnership, which only achieved full integration across Marriott's booking platforms in June 2025, has come to an abrupt end due to what Marriott describes as "Sonder's default."

For UK-based Marriott Bonvoy members who value having diverse redemption options — particularly apartment-style properties in major cities — this is disappointing news. Sonder brought approximately 9,000 rooms across 35+ cities worldwide to the Marriott portfolio, offering a different kind of stay experience that bridged the gap between traditional hotels and private rentals.

For those unfamiliar with the brand, Sonder operated apartment-style accommodations and boutique hotels primarily in urban markets across North America, Europe, and the Middle East. Think of it as a more curated alternative to Airbnb — professionally managed properties with hotel-like amenities but the space and flexibility of an apartment.

What made Sonder particularly appealing for points collectors was its earning structure:

• Sonder Hotels: 10 Marriott Bonvoy points per £1 spent on room rates • Sonder Apartments: 5 Marriott Bonvoy points per £1 spent on room rates • One elite night credit per qualifying night at both property types • Elite bonus points applied as usual

The properties were particularly attractive in expensive cities like London, Amsterdam, and New York, where Sonder often offered more competitive rates than traditional Marriott hotels whilst still allowing you to earn points and elite night credits. As someone with Marriott Bonvoy Titanium status, I'd been eyeing several Sonder properties for upcoming trips (and even booked one…), so this news hits particularly close to home.

The official reason given by Marriott is rather vague: "Sonder's default." The company hasn't elaborated on the specific circumstances, but this isn't entirely surprising if you'd been following Sonder's financial situation.

Sonder has been in financial turmoil for some time. The company went public via a SPAC merger in early 2022, but its stock price has since plummeted by 99.74%. Even more concerning, Sonder hasn't published financial results since Q3 2023, and previously stated that its 2022 and 2023 financial statements "should no longer be relied upon."

According to reports, Sonder had been:

• Exiting or reducing rent at approximately 105 properties to "mitigate losses" • Laying off roughly 17% of its corporate workforce • Receiving deficiency notices from Nasdaq for failure to file required financial reports • Recently postponing its annual shareholders meeting indefinitely

In August 2025, Sonder amended its agreement with Marriott to convert up to one year's worth of fees into obligations under senior secured notes — a clear sign the company was struggling to meet its financial commitments.

The licensing agreement would have included provisions for default, potentially including failure to pay amounts due or having 40% or more of properties failing to comply with collection standards. It seems likely that one or more of these triggers was met.

If you have upcoming Sonder reservations, here's what you need to know:

For bookings made through Marriott channels (Marriott.com, the Marriott Bonvoy app, or Marriott's reservation centres): Marriott has stated it will contact affected guests directly to address reservation and booking needs. This likely means they'll help you cancel and rebook at alternative Marriott properties, though it's unclear whether they'll match the rates you originally secured.

For award bookings: If you redeemed Marriott Bonvoy points for a Sonder stay, Marriott should refund your points. However, given that award availability at comparable properties might be limited, you may find yourself with fewer attractive options for your travel dates.

**For bookings made through third-party sites** (Expedia, Hotels.com, etc.): You'll need to contact the booking agency directly. Marriott isn't handling these reservations.

**For bookings made directly with Sonder** (before the Marriott integration): Contact Sonder directly, though given their financial situation, there are legitimate concerns about whether they'll honour existing reservations.

My advice? Don't wait for Marriott to contact you. Be proactive. If you have a Sonder booking through Marriott channels, reach out to them immediately to understand your options and secure alternative accommodation whilst availability is still good.

This termination isn't just bad news for guests with existing bookings — it's a meaningful hit to Marriott's growth projections. The company has revised its full-year net rooms growth forecast from approximately 5% down to 4.5% as a result of removing Sonder's approximately 9,000 rooms from its system.

For us as points collectors, the loss of Sonder represents:

Fewer redemption options in key cities: Sonder properties were often located in central neighbourhoods where traditional Marriott hotels were either scarce or prohibitively expensive. Cities like Amsterdam, Paris, London, and New York are particularly affected.

Less competition on pricing: Even if you weren't booking Sonder properties, their presence in the market helped keep cash rates competitive. With one fewer option, there's less pressure on traditional Marriott properties to offer attractive rates.

Reduced variety in property types: For families or groups, apartment-style accommodation with full kitchens and multiple bedrooms was incredibly valuable. Whilst Marriott still has Apartments by Marriott Bonvoy, Marriott Executive Apartments, and Homes & Villas by Marriott Bonvoy, Sonder offered a different product at more accessible price points.

This isn't Marriott's first experience with challenging partnerships. Remember when Marriott partnered with MGM Resorts to add over 31,000 rooms in Las Vegas? That partnership has been more successful, though it raised questions about brand dilution.

The Sonder situation highlights the risks inherent in Marriott's strategy of rapid portfolio expansion through licensing agreements rather than traditional franchising or management contracts. When you're not directly operating properties, you're exposed to the financial health and operational capabilities of your partners.

Perhaps more concerning is the speed at which this unravelled. The partnership was only announced in August 2024, properties began appearing on Marriott platforms in April 2025, full integration was completed in June 2025, and now — just five months after full integration — it's all over. That's an incredibly short lifespan for a "long-term strategic partnership."

The good news is that Marriott still offers several apartment and extended-stay options within its portfolio:

However, none of these exactly replicate what Sonder offered: tech-forward, apartment-style properties in prime urban locations at mid-range price points. Element and Residence Inn tend to be in suburban or airport locations. Marriott Executive Apartments and Homes & Villas skew much more expensive. Apartments by Marriott Bonvoy is still a relatively small collection.

It's worth noting that Marriott recently acquired citizenM, which should help fill some of the gap left by Sonder in terms of affordable, design-forward urban properties — though citizenM focuses on compact hotel rooms rather than apartments.

I'll be honest — I'm disappointed by this development, but I can't say I'm entirely surprised. The warning signs were there if you were paying attention. Sonder's financial troubles were well-documented, and the speed with which Marriott pushed through the integration in early 2025 suggested some urgency (perhaps to try to salvage the partnership whilst it still could).

For those of us who maintain Marriott Bonvoy elite status (whether through stays or via status matches), this also means fewer properties where we can earn elite night credits. With the introduction of British Airways Club potentially changing how we think about status qualification, having diverse ways to earn hotel elite nights through affordable stays was becoming increasingly valuable.

On the other hand, this situation underscores the importance of diversifying your loyalty programme strategy. If you're solely focused on one hotel programme or one airline alliance, you're vulnerable when partnerships collapse or programmes devalue. This is why I maintain status across multiple programmes — British Airways Gold, Virgin Atlantic Flying Club Gold, Marriott Bonvoy Titanium, and Hilton Gold — and why I use tools like Award Travel Finder to find the best redemption value across multiple programmes.

If you have any Sonder bookings — whether paid or award stays — act immediately:

1. Check your reservations: Log into your Marriott Bonvoy account and review any upcoming stays at Sonder properties.

2. Contact Marriott: Don't wait for them to reach out. Call or use the app to speak with a representative about your booking.

3. Secure alternatives: With many guests in the same situation, alternative accommodation may fill up quickly. Book something else whilst you still have good options.

4. Document everything: Keep records of your original booking, any communication with Marriott, and the alternative arrangements they offer.

5. Monitor your points: If you used points for a Sonder redemption, ensure they're properly refunded to your account.

For bookings made through third-party sites or directly with Sonder, I'd be particularly cautious. Given Sonder's financial situation, there's a real risk they may not honour reservations. If you have travel insurance that covers supplier failure, now would be a good time to review your policy.

This situation serves as a reminder that the points and miles world is constantly evolving — and not always in our favour. Programmes devalue, partnerships end, and benefits get reduced. The key to navigating this landscape successfully is staying informed, maintaining flexibility, and never putting all your eggs in one basket.

That's why I write this newsletter — to keep you updated on developments like this and help you adapt your strategy accordingly. Whether it's transfer bonuses, new routes, status match opportunities, or unfortunate news like this Sonder termination, staying on top of these changes is essential for maximising the value of your points and miles.

Have you been affected by the Sonder termination? Let me know in the comments or reach out on Instagram — I'd love to hear your experiences and any challenges you've faced getting alternative bookings sorted.

Until next time, keep an eye on your bookings and may your backup plans come through!

Jack