Sonder, the San Francisco-based short-term rental company, has abruptly shut down its Philadelphia properties and ceased operations after Marriott International terminated its licensing deal with the company. The move is a result of prolonged challenges in integrating their systems and booking arrangements, which have led to significant financial constraints.
The exact number of Sonder properties affected by this closure is unclear, but four apartments in Center City were still listed on TripAdvisor as of Monday, including The Arco, The Witherspoon Apartments Center City, The Queen Hotel Queen Village, and The Edison. Guests at one of these properties, The Witherspoon, were given just 24 hours' notice to vacate the premises.
The closure is a dramatic turn of events for Sonder, which had previously been seen as a competitor to Airbnb. In a statement, interim CEO Janice Spears acknowledged that the company's integration with Marriott International was "substantially delayed" due to unexpected technical challenges and integration costs, leading to a sharp decline in revenue.
Sonder plans to file for Chapter 7 liquidation of its US businesses, citing "profound financial constraints" as the reason for its collapse. Despite attempting to find alternative solutions, including a potential sale of the business, the company has been left with no choice but to shut down.
The impact of Sonder's closure is being felt across multiple cities worldwide, where the company had over 40 properties offering short-term rentals. Guests who had booked stays at these properties are now facing uncertainty and disruption, as they try to secure refunds or find alternative accommodation.
In a devastating admission, Spears stated that Sonder "made comprehensive efforts" to avoid liquidation, but ultimately was left with no viable options due to the company's integration challenges and declining revenue. The closure of Sonder's Philadelphia properties marks a significant blow to the city's short-term rental market, leaving many wondering what this means for the future of accommodation in the city.
The exact number of Sonder properties affected by this closure is unclear, but four apartments in Center City were still listed on TripAdvisor as of Monday, including The Arco, The Witherspoon Apartments Center City, The Queen Hotel Queen Village, and The Edison. Guests at one of these properties, The Witherspoon, were given just 24 hours' notice to vacate the premises.
The closure is a dramatic turn of events for Sonder, which had previously been seen as a competitor to Airbnb. In a statement, interim CEO Janice Spears acknowledged that the company's integration with Marriott International was "substantially delayed" due to unexpected technical challenges and integration costs, leading to a sharp decline in revenue.
Sonder plans to file for Chapter 7 liquidation of its US businesses, citing "profound financial constraints" as the reason for its collapse. Despite attempting to find alternative solutions, including a potential sale of the business, the company has been left with no choice but to shut down.
The impact of Sonder's closure is being felt across multiple cities worldwide, where the company had over 40 properties offering short-term rentals. Guests who had booked stays at these properties are now facing uncertainty and disruption, as they try to secure refunds or find alternative accommodation.
In a devastating admission, Spears stated that Sonder "made comprehensive efforts" to avoid liquidation, but ultimately was left with no viable options due to the company's integration challenges and declining revenue. The closure of Sonder's Philadelphia properties marks a significant blow to the city's short-term rental market, leaving many wondering what this means for the future of accommodation in the city.
. I had friends who were going to stay at one of those apartments and now they're freaking out trying to get refunds or find new places to stay. It's crazy how quickly things can go from being a cool option to not existing anymore 
. The tech stuff sounds like it was too complicated, but I don't get why it couldn't just be worked out with Marriott International? Now there are just a bunch of empty apartments and no one knows what's going on 
.
! Marriott just pulled the plug on them and now their entire US business is getting shut down 
. It's crazy how tech issues and financial struggles can bring down a whole company in one fell swoop 
. I mean, I've had some bad experiences with short-term rentals before, but at least I knew what I was getting into 
. Sonder's closure is gonna mess with a lot of people's travel plans this year, gotta feel for the guests who are left scrambling for refunds or new places to stay 
idk how they're keeping them running like that... seems like a nightmare trying to integrate with marriott international 
anyway, hope the guests get their refunds sorted ASAP 
. Those 4 apartments were still listed on TripAdvisor as if nothing happened 
. I mean, who gives 24 hours' notice to vacate? That's crazy! 
It's like they just gave up on the whole thing 
. The CEO said it was due to financial constraints, but that's just a nice way of saying they messed up the integration with Marriott 
. Now guests are stuck trying to get refunds or find new places to stay 
. Not great for the city's short-term rental market 
. I hope Sonder tries to make it work elsewhere, but Philly is gonna feel this one hard 
sonder had such great apartments and it's always fun to stay there 
they should have gotten it together with marriott international before now... like, hindsight is 20/20 right? 
i feel bad for all the guests who got screwed with the short notice 
anyone else gonna get affected by this or is philly safe now? 
! I mean, I knew they were struggling, but 24 hours' notice to vacate? That's just not cool 
. And Marriott terminating their deal? That's some next-level corporate move 
. I feel bad for the guests who got screwed out of their bookings 
. This is gonna make waves in Philly's accommodation scene, for sure...
to suddenly being done 
i mean, who expects this kinda thing to happen? especially when they were trying to integrate with marriott international 
not to mention the financial constraints 
. They must've seen an opportunity to swoop in and take control of the short-term rental market. What's really going on is that Sonder was getting too close to exposing some shady practices by Marriott. I mean, have you noticed how easy it is for them to shut down a company like Sonder? It's just too convenient 
. What's going on in the future of short-term rentals in Philly? Is this gonna affect Airbnb too? Shouldn't Marriott International have thought things through before cutting ties with Sonder 
it was so instagrammable 
but it just goes to show how hard it can be for short-term rental companies to navigate the booking systems and all that jazz 
and we'll just have to wait and see how the city reacts to this new development