On Sunday, November 9, TPG reported that Marriott announced the termination of its licensing agreement with Sonder, a hotel company that operates short-term rentals and boutique hotels in more than 35 cities around the world. Now, Sonder has announced it is “immediately winding down operations and anticipates liquidating its U.S. operations under Chapter 7,” according to a statement released by the company. To learn more about Marriott’s previous partnership with Sonder, check out our coverage from earlier this week.
“We are shocked that liquidation is the only viable path forward,” Sonder interim CEO Janice Sears said in a company statement.
Now, many guests (including TPG employees) are wondering: What happens next?
Reimbursement but no discount for rebooking
Those who are currently traveling and have been asked to check out of Sonder properties over the past few days are certainly in the most difficult position.
One reader wrote that while staying at the Sonder Hotel, he received an email from Marriott informing him that the agreement between Marriott and Sonder Holdings had been terminated and that Marriott could no longer continue bookings.
“We kindly ask that you check out as soon as possible,” the email read.
Marriott later apologized for the inconvenience and explained that refunds for the remaining stays will be processed as quickly as possible and that Marriott’s customer service team is ready to secure additional accommodations.
The biggest problem is that many people don’t get any discounts on new stays, which means room rates, especially day rates in major cities, are going to be very high.
Another reader, a Marriott Bonvoy Gold Elite member based in the United Kingdom, wrote to TPG and explained that she had booked a three-night non-refundable stay at the Sonder Le Guerin in Montreal. The booking was made via the British Airways Avios e-store via the Marriott UK website.
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Marriott notified her less than 24 hours before her check-in that her reservation was canceled and offered her 40,000 points to rebook at a new hotel. The reader ended up having to pay cash for the remaining two nights of her stay at the new hotel, which totaled more than her original three-night stay. Marriott told her her original Sonder reservation would be reimbursed, but she has yet to be reimbursed.
How to make sure you get reimbursed
It’s worth noting that while Marriott and Sonder are a partnership, Sonder is technically the company responsible for providing the reimbursements, but is unable to do so as the company is going into liquidation.
Marriott has informed Sonder guests that their original stay costs will be reimbursed, but how It’s a little confusing where these reimbursements will occur. While guests can contact Marriott to discuss a refund, it’s best to contact the credit card company directly to dispute the charge and obtain a refund of the original reservation. This information is outlined in the Marriott Sonder FAQ page, which reads:
“If you booked Sonder through Marriott channels, including Marriott.com, Marriott Bonvoy mobile app, customer service center and Fliggy Hotels, we recommend that you contact your credit card issuing bank to ensure your refund is accurately recorded. Any refunds will be processed on the card that processed the prepayment. Marriott International will provide support in assisting you in initiating the refund process, but since Marriott International has not charged the card, we will coordinate with the appropriate parties, including the card processor, to ensure that your refund is processed as quickly as possible. ”
What to do if you are currently traveling
If you are currently being asked to opt out of a Sonder reservation (or you have done so in the past few days), your best course of action at this time is to contact Marriott through its reservations center (phone numbers by brand and destination can be found here). You can contact the company’s customer support team in the United States and Canada at 1-800-535-4028.
While it sounds like the outcome is variable, Marriott should at least help guests get reimbursed for their original stay and assist with rebooking at a new Marriott property in the area — although it appears the discounted rate (cash or points) is not guaranteed at this time.
What to do if you booked your upcoming Sonder stay through Marriott
If you have booked accommodation at Sonder, you should cancel your reservation immediately and dispute the original reservation with your credit card company. This should ensure you get a refund of the original price of your reservation. For now, please contact Marriott using the number mentioned above (or linked to) to rebook your trip.
TPG has reached out to Marriott with specific questions about what Marriott Bonvoy members can currently expect, and we will update this story as we learn more.
