tl;dr – This was a weird partnership from the jump.
A big story this week was the end of the Marriott-Sonder partnership, news that coincided with Sonder’s Chapter 7 filing.
Marriott formally announced the news on its website on Monday, and Sonder followed suit with an announcement that it would “immediately wind down operations.”
Marriott’s partnership with Sonder was always awkward. The licensing agreement between the two brands always felt like the type of thing that ‘made sense on paper’ (Sonder gets increased distribution, Marriott gets ammo against Airbnb), but in practice, the synergies just weren’t there. As one of several players that operated in that in-between space between Airbnb and Hotel, Sonder once sported a nearly $2 billion valuation. The company parlayed growth (and also frothier markets) into an IPO, while also inking a shiny licensing agreement with Marriott. Sonder touted a better guest experience and amenities of a hotel while enjoying the space and freedoms of an apartment or furnished vacation rental, but the actual offerings often fell short. In the end, the numbers simply weren’t there, and the breakup wasn’t entirely clean. There were several reports of guests being evicted in the middle of their stays.
Here’s hoping Marriott’s newest love – the great outdoors – results in more meaningful, long-lasting partnerships.
