Marriott International has ended its licensing deal with Sonder Holdings Inc., saying that the short-term rental company “defaulted.” This is a tremendous shock in the hotel industry. The news comes out on November 9, 2025. It ends quickly a relationship that began in 2024 and was seen as a key part of Marriott’s plan to offer more types of accommodations.
Sonder is known for its tech-forward approach to apartment living. It joined Marriott’s system earlier this year and now goes by the name “Sonder by Marriott.” When people stayed in Sonder hotels, they could earn and spend Marriott Bonvoy points. These hotels were like homes but with hotel services.
In their new statement, Marriott says that they had to back out of the deal because Sonder didn’t do what they agreed to do. Why the “default” was made has not been made public. Some possible reasons are making payments after the due date or not following the rules set out in the original deal.
What it means for guests and plans that are already made
Marriott says that its main goal right now is to help guests with Sonder bookings that are happening now or will happen soon. People who made reservations through Marriott will be called directly to talk about canceling, getting a refund, or making new reservations at other Marriott hotels. People who booked through Expedia, Hotels.com, or other sites not owned by the hotel were told to call those sites.
Sonder properties are no longer listed on Marriott’s websites, and the “Sonder by Marriott” logo is no longer shown on official Bonvoy entries since the relationship ended. It’s clear from how quickly they took it away that the company has chosen to cut all ties until they can talk or make changes again.
The financial estimate now calls for net room growth to slow down to 4.5%.
It has a direct effect on Marriott’s plans for growth in 2025. The hotel chain cut its net room growth estimate from 5% to 4.5% when it changed its financial outlook.
Over 9,000 Sonder units that were meant to join Marriott’s global portfolio by the end of 2024 have been lost, which is why the number has been cut. The firing of these new workers takes them out of the company’s plans to grow, which slows its overall growth a bit.
Marriott made it clear that its strategy goals and basic financial structure have not changed, even with this loss. It’s still very important for the business to grow all over the world. Most of the time, hotels in North America, Europe, and the Asia-Pacific region are getting new rooms or being fixed up.
Marriott's plan for diversification has changed in a bigger way.
Prior to this shift, Marriott’s collaboration with Sonder was viewed as an innovative approach to enter the rapidly expanding alternative accommodation sector, which is presently dominated by Airbnb and VRBO. Marriott intended to draw in visitors who wanted to stay longer and with a well-known brand, so it added apartment-style suites to its inventory.
But there was a lot of anxiety in the relationship because of Sonder’s continuous financial troubles, which included practical challenges and a declining market value. Although the corporation was valued at $2.2 billion in 2021, the current market value is less than $7 million.
Many in the business community think that Marriott’s move to break with Sonder is an indication of a change in strategy. The corporation is currently concentrating on its conventional hotel operation, which generates revenue and maintains the stability of the tourism industry.
Marriott is getting better because of changes in tourism.
The revised estimate aligns with indications that travelers worldwide are improving. According to recent government data, international travel is once again increasing, particularly in North America and Europe.
In the United Kingdom, hotel bookings and occupancy levels have gradually increased. This is attributable to both commercial and leisure travelers. Marriott is leveraging this trend by investing in locations such as London, Manchester, and Edinburgh that attract visitors. High-end and luxury names like Ritz-Carlton, JW Marriott, and W Hotels are still doing well, drawing travelers who want to stay in places that will stand out.
The company wants to keep its name strong while still growing, and this new focus on high-end markets fits with that plan.
The promise of growth that is responsible and will last
Marriott is still working to make the world more sustainable as one of its long-term goals. The company has been working to make its operations more eco-friendly and has put in place rules for responsible buying at all of its sites around the world.
These steps are in line with what the European government says should be done to protect the environment in the hospitality business and encourage good tourism. The things Marriott does to help the environment help the company follow the law and also bring in new tourists who care about staying in places that are good for the environment.
Marriott wants to stay ahead of the competition in a market that is becoming increasingly concerned with ethics and the environment by advertising itself as both a high-end and eco-friendly brand.
The Strong Way Forward for Marriott
The collapse of the Sonder partnership has affected Marriott’s short-term growth ambitions, but the company’s main purpose is still solid. The company’s many-faceted approach, which includes brand loyalty, exceptional service, and travel that is healthy for the environment, will help them keep doing well.
Some experts believe that the money that Marriott is spending on new projects and the rise in international tourists could more than make up for Sonder’s departure. People in the group are always focusing on the customer experience and going into new areas. They will be strong even if the hotel business changes because of this.
Someone who studies the hotel business said, “Marriott’s strength lies in its ability to adapt.” The company made the right choice by focusing on its main hotel business instead of the Sonder deal. This will pay off in the long run.
That being said
The split between Marriott and Sonder is a big change in how the company will grow in 2025. In the short term, it slightly slows down Marriott’s growth, but it also shows that the brand is more dedicated than ever to being financially responsible and running an honest business.
Marriott is well-positioned to navigate the evolving global travel landscape, leveraging its international hotel portfolio, sustainable tourism efforts, and guest-focused innovations.
