Marriott Ends Agreement With Sonder: What It Means for Travelers and the Hospitality Industry

In a move that sent ripples through the hospitality industry, Marriott International aounced the immediate termination of its partnership with Sonder, a leading short-term rental and extended-stay accommodation provider. The decision, effective as of [insert date], marks the end of a collaboration that once promised to blend Marriott’s global hospitality expertise with Sonder’s tech-driven, flexible lodging model. But what led to this abrupt split, and what does it mean for travelers, investors, and the future of hybrid hospitality?

This article dives into the details of the Marriott-Sonder agreement termination, exploring the reasons behind the decision, its impact on guests and loyalty programs, and what alternatives travelers can consider. Whether you’re a frequent Marriott Bonvoy member, a Sonder fan, or simply curious about the evolving landscape of travel accommodations, this breakdown will help you understand the implications—and opportunities—ahead.

What Was the Marriott-Sonder Partnership?

The collaboration between Marriott International and Sonder began in [insert year], aiming to merge Marriott’s brand trust and global reach with Sonder’s iovative, apartment-style stays. Under the agreement, Sonder’s properties were integrated into Marriott’s booking platform, allowing guests to earn and redeem Marriott Bonvoy points while enjoying the flexibility of Sonder’s extended-stay units. These units often featured full kitchens, living spaces, and a more residential feel compared to traditional hotels—a major draw for business travelers, digital nomads, and families.

The partnership was part of Marriott’s broader strategy to diversify its offerings beyond conventional hotels, tapping into the growing demand for alternative accommodations. For Sonder, the deal provided access to Marriott’s vast customer base and loyalty program, a significant boost for a company positioning itself as a bridge between hotels and home-sharing platforms like Airbnb.

Key Features of the Partnership

• Bonvoy Integration: Guests could earn and use Marriott Bonvoy points for Sonder stays, a major perk for loyalty program members.
• Expanded Inventory: Marriott’s platform gained hundreds of Sonder properties in key markets, offering more variety to travelers.
• Hybrid Hospitality Model: The collaboration blurred the lines between hotels and short-term rentals, catering to guests seeking longer stays or home-like amenities.
• Tech-Driven Experience: Sonder’s app-based check-in and 24/7 support aligned with Marriott’s focus on seamless digital experiences.

At its core, the partnership was a test of whether traditional hospitality and modern rental models could coexist under one brand. For a while, it seemed to work—but cracks began to show.

Why Did Marriott Terminate the Agreement?

The sudden end of the Marriott-Sonder partnership raises questions: Was it a strategic shift, a performance issue, or something else? While neither company has released a detailed statement, industry analysts point to several likely factors:

1. Financial and Operational Challenges

Sonder, like many companies in the short-term rental space, faced profitability struggles post-pandemic. Despite high demand for alternative accommodations, the company reported losses in recent quarters, citing rising operational costs and market saturation. For Marriott, which prioritizes revenue per available room (RevPAR) and brand consistency, aligning with a financially unstable partner may have become untenable.

Additionally, integrating Sonder’s properties into Marriott’s system required significant technological and logistical coordination. Differences in property management, guest services, and quality control standards may have created friction, leading to a misalignment in operational expectations.

2. Brand Dilution Concerns

Marriott’s brand is built on standardized quality and reliability. While Sonder’s properties offered unique amenities, they also introduced variability in guest experiences—something Marriott’s core customer base may not have embraced. Complaints about inconsistent cleanliness, maintenance issues, or service gaps in Sonder units could have reflected poorly on Marriott’s reputation, prompting the company to cut ties to protect its brand integrity.

3. Shifting Market Dynamics

The travel industry has seen a post-pandemic rebound, but the demand for extended stays and alternative accommodations is evolving. Marriott may have decided to double down on its own extended-stay brands, such as Residence I, TownePlace Suites, or Homes & Villas by Marriott, rather than relying on a third-party provider. This allows Marriott to maintain full control over inventory, pricing, and guest experience.

Meanwhile, Sonder is pivoting toward a more independent path, focusing on direct bookings and partnerships with other loyalty programs or corporate clients. The split could be a strategic move for both companies to refine their offerings without compromise.

4. Guest Feedback and Loyalty Program Impact

One of the biggest selling points of the partnership was the ability to earn Marriott Bonvoy points for Sonder stays. However, some Bonvoy members reported difficulties redeeming points or receiving inconsistent benefits compared to traditional Marriott properties. If the integration failed to deliver a seamless experience for loyalty program members, Marriott may have seen little incentive to continue the partnership.

Related: How Marriott Bonvoy Points Work: A Complete Guide

What Does This Mean for Travelers?

If you’ve booked a Sonder stay through Marriott or are a Bonvoy member who frequently used the partnership, here’s what you need to know:

1. Immediate Impact on Bookings

As of the termination date, Sonder properties are no longer bookable through Marriott’s website or app. Existing reservations made prior to the split will likely be honored, but travelers should confirm details directly with Sonder or Marriott’s customer service. If you have an upcoming stay, check your confirmation email for updates or reach out to the property for clarification.

2. Marriott Bonvoy Points and Elite Benefits

Unfortunately, Sonder stays will no longer earn Bonvoy points, and elite status benefits (such as room upgrades or late checkout) will not apply. If you have a stay booked before the termination, you may still earn points, but this depends on Marriott’s final policy—double-check the terms.

For Bonvoy members who relied on Sonder for extended stays, alternatives include:

• Marriott’s Homes & Villas: A collection of premium home rentals that do earn Bonvoy points.
• Residence I or TownePlace Suites: Extended-stay brands with kitchenettes and flexible rates.
• Partner Programs: Marriott has partnerships with other rental platforms (e.g., Homes & Villas by Marriott International), which may offer similar benefits.

3. Sonder’s Future and Direct Bookings

Sonder is not disappearing—far from it. The company continues to operate independently, with a focus on direct bookings through its website and app. Travelers who enjoyed Sonder’s properties can still book them, though without the Bonvoy perks. Sonder may also explore new loyalty partnerships or corporate travel programs to fill the gap left by Marriott.

See also: Best Alternatives to Airbnb for Business Travelers

4. Refunds and Customer Support

If your Sonder booking was made through Marriott and is affected by the termination, contact Marriott Customer Service or Sonder’s support team for assistance. Most companies handle transitions like this with refunds or rebooking options, but policies may vary. Keep an eye on your email for official communications from either brand.

How the Hospitality Industry Is Reacting

The Marriott-Sonder split is more than just a corporate breakup—it’s a reflection of broader trends in the hospitality sector. Here’s how industry experts and competitors are responding:

1. A Test Case for Hybrid Hospitality

The partnership was one of the first major attempts to blend traditional hotel loyalty programs with alternative accommodations. Its failure suggests that such integrations require deeper alignment in operations, guest expectations, and financial models. Other hotel chains watching this experiment closely may now hesitate to pursue similar deals unless they can ensure seamless execution.

2. The Rise of In-House Extended-Stay Brands

Marriott’s decision to part ways with Sonder aligns with its investment in owned extended-stay brands like Residence I and Homes & Villas. Competitors such as Hilton (Home2 Suites) and Hyatt (Hyatt House) are also expanding their long-stay offerings, signaling a shift toward self-sufficient solutions rather than third-party partnerships.

3. Sonder’s Path Forward

For Sonder, the split is a chance to refocus on its core strengths: tech-enabled, flexible stays in urban markets. The company may prioritize:

• Corporate Housing Partnerships: Collaborating with businesses to provide relocating employees with extended stays.
• Direct Loyalty Programs: Launching its own rewards system to retain guests.
• Niche Market Expansion: Targeting digital nomads, remote workers, and bleisure (business-leisure) travelers who value flexibility.

4. What This Means for Airbnb and VRBO

The termination could be a win for platforms like Airbnb and VRBO, which have long dominated the alternative accommodations space. With Marriott no longer promoting Sonder, travelers seeking non-traditional stays may turn to these platforms instead. However, Airbnb and VRBO lack the loyalty program integration that made Sonder appealing to Bonvoy members—a gap they may seek to fill in the future.

Related: Airbnb vs. VRBO: Which Is Better for Long-Term Stays?

What’s Next? Alternatives for Travelers and Investors

Whether you’re a traveler adjusting to the change or an investor watching the hospitality space, here are the best alternatives and opportunities to consider:

For Travelers:

• Marriott’s Extended-Stay Brands:
  • Residence I: Ideal for week-long stays with kitchenettes and free breakfast.
  • TownePlace Suites: Budget-friendly extended stays with home-like amenities.
  • Homes & Villas by Marriott: Luxury home rentals with Bonvoy benefits.
• Hilton’s Home2 Suites: A strong competitor with flexible rates and Hilton Honors integration.
• Hyatt’s Hyatt House: Extended-stay options with Hyatt’s World of Hyatt loyalty perks.
• Airbnb or VRBO: For those who prioritize unique spaces over loyalty points, though without hotel-branded consistency.
• Sonder (Direct Booking): Still a viable option for tech-savvy travelers who don’t need Bonvoy points.

For Investors:

The split highlights key trends to watch in the hospitality sector:

• Consolidation of Extended-Stay Brands: Hotel chains are likely to invest more in their own long-stay properties rather than outsourcing.
• Tech Integration Challenges: Companies that can seamlessly merge loyalty programs with alternative accommodations will have a competitive edge.
• Sonder’s Valuation and Strategy: Investors should monitor whether Sonder can pivot successfully post-Marriott, particularly in corporate housing and direct bookings.
• Airbnb’s Corporate Play: If Airbnb enhances its business travel and loyalty offerings, it could capture market share from traditional hotels.

Expert Tips for Navigating the Change

To make the most of this transition—whether as a traveler or industry observer—keep these tips in mind:

For Bonvoy Members:

• Maximize Marriott’s Own Extended-Stay Brands: Shift your bookings to Residence I or Homes & Villas to continue earning points.
• Explore Status Matches: If you’re disappointed with Marriott’s options, consider status matching to Hilton Honors or World of Hyatt for better extended-stay perks.
• Watch for Promotions: Marriott may offer bonuses or discounts to retain guests affected by the Sonder split.

For Sonder Fans:

• Book Directly: Sonder’s website often has exclusive deals, and direct bookings may come with perks like flexible cancellations.
• Check for Corporate Rates: If you’re traveling for work, ask your company about Sonder’s corporate housing programs.
• Compare with Airbnb: Use tools like AirDNA or PriceLabs to compare Sonder’s rates with Airbnb/VRBO for the best value.

For Industry Watchers:

• Monitor Marriott’s Next Moves: Will they acquire a rental platform or expand Homes & Villas? This could signal their long-term strategy.
• Track Sonder’s Performance: Quarterly earnings and occupancy rates will reveal how well the company adapts post-Marriott.
• Look for New Partnerships: Could Hyatt or Hilton strike a deal with Sonder or a similar provider? The industry is ripe for experimentation.

Conclusion: A Turning Point for Travel and Hospitality

The termination of Marriott’s agreement with Sonder is more than just the end of a partnership—it’s a pivotal moment in the evolution of travel accommodations. For Marriott, the decision reinforces its commitment to controlling the guest experience through its own brands. For Sonder, it’s an opportunity to carve out a niche as a standalone player in the flexible-stay market. And for travelers, it’s a reminder that the hospitality landscape is always changing, offering new choices and challenges.

If you’re a Marriott loyalist, explore the chain’s extended-stay options to keep earning those valuable Bonvoy points. If you loved Sonder’s unique properties, book directly and stay tuned for potential new loyalty perks. And if you’re an investor or industry professional, watch how this split influences future collaborations between hotels and alternative accommodation providers.

One thing is clear: The line between hotels and rentals is blurring, but the path to seamless integration remains a work in progress. As the dust settles, the companies that adapt fastest—and put guest needs first—will lead the next chapter of hospitality.

Ready to Book Your Next Stay?

Whether you’re leaning toward Marriott’s trusted brands or exploring Sonder’s independent offerings, now is the time to compare your options and lock in the best rates. Start plaing your next trip today—and stay flexible as the travel industry continues to evolve!

What’s your take? Will you stick with Marriott, try Sonder directly, or explore other alternatives? Share your thoughts in the comments below!

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