Philadelphia residents woke up on Monday morning to find that several short-term rental properties they had booked through Sonder were now closed for good. The San Francisco-based company, which once boasted an impressive portfolio of boutique hotels and apartments in over 40 cities worldwide, has abruptly gone out of business.
The shutdown of Sonder's Philly rentals comes just one day after Marriott International terminated its licensing deal with the company. While Marriott had agreed to integrate their booking arrangements and systems last year, it appears that the integration process proved too challenging for Sonder, ultimately leading to financial constraints.
According to a statement released by Sonder, the company's "prolonged challenges" in integrating with Marriott contributed to its downfall. The San Francisco-based firm plans to file for bankruptcy and liquidate its assets, leaving many guests with little time to find alternative accommodations.
Guests at one of the affected properties, Sonder The Witherspoon Apartments Center City, were given just 24 hours' notice that their building was being closed down. Those who had booked a stay under the new management were offered refunds by Marriott, while others were left scrambling to make other arrangements.
Similar scenes played out in cities nationwide, with travelers facing unexpected closures and last-minute evictions from Sonder hotels. For one traveler, the experience was particularly harrowing, with the entire building being asked to vacate by 9 a.m. on Monday morning.
Sonder's woes are a stark reminder of the challenges faced by short-term rental companies in the competitive hospitality industry. The company's failure has also raised questions about the long-term viability of its business model and the impact it will have on its employees and stakeholders.
As the dust settles, Sonder's interim CEO Janice Spears expressed her disappointment at the need for liquidation, citing "unexpected challenges" in integrating with Marriott as a major factor. The exact financial details of Sonder's struggles remain unclear, but one thing is certain: the company's abrupt closure has left many travelers with a disrupted travel plan and a lingering sense of uncertainty about the future of short-term rentals in Philadelphia.
The shutdown of Sonder's Philly rentals comes just one day after Marriott International terminated its licensing deal with the company. While Marriott had agreed to integrate their booking arrangements and systems last year, it appears that the integration process proved too challenging for Sonder, ultimately leading to financial constraints.
According to a statement released by Sonder, the company's "prolonged challenges" in integrating with Marriott contributed to its downfall. The San Francisco-based firm plans to file for bankruptcy and liquidate its assets, leaving many guests with little time to find alternative accommodations.
Guests at one of the affected properties, Sonder The Witherspoon Apartments Center City, were given just 24 hours' notice that their building was being closed down. Those who had booked a stay under the new management were offered refunds by Marriott, while others were left scrambling to make other arrangements.
Similar scenes played out in cities nationwide, with travelers facing unexpected closures and last-minute evictions from Sonder hotels. For one traveler, the experience was particularly harrowing, with the entire building being asked to vacate by 9 a.m. on Monday morning.
Sonder's woes are a stark reminder of the challenges faced by short-term rental companies in the competitive hospitality industry. The company's failure has also raised questions about the long-term viability of its business model and the impact it will have on its employees and stakeholders.
As the dust settles, Sonder's interim CEO Janice Spears expressed her disappointment at the need for liquidation, citing "unexpected challenges" in integrating with Marriott as a major factor. The exact financial details of Sonder's struggles remain unclear, but one thing is certain: the company's abrupt closure has left many travelers with a disrupted travel plan and a lingering sense of uncertainty about the future of short-term rentals in Philadelphia.
this is crazy, can't believe sonder went from being all fancy to poof! 
i mean, i used to love booking those cute apartments through sonder but now i'm just glad marriott stepped in and gave people refunds lol. 
24 hours notice is way too short for guests to find new accommodations, it's like they got served with a eviction notice 
. i hope the employees are okay tho, that's what really matters in this whole thing. 
the hospitality industry can be tough but sonder just got taken down by its own ambitions 
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just had to scramble for new accommodation after my sonder booking got cancelled last minute 
the place was literally empty 24hrs before they shut down 
no warning whatsoever... I mean, I get it, integration issues with Marriott and all that 
but still can't help feeling ripped off 
Marriott at least offered refunds tho 
guess we'll just have to wait and see how this whole thing plays out 
ANYWAY, I FEEL BAD FOR ALL THE PEOPLE WHO WERE LEFT STUCK WITH NO PLACE TO STAY ON SUCH SHORT NOTICE... 24 HOURS IS LIKE, FOREVER WHEN YOU'RE TRYING TO FIND A NEW PLACE TO CRASH!!! 
. I mean, think about it, they were basically just renting out apartments without any real oversight or regulation, right? It's like they just winged it and hoped for the best 
. And now, suddenly we're supposed to feel bad for them because they can't even be bothered to integrate with Marriott properly 
? Please, they had plenty of time to figure that one out... or maybe they were just too busy making money off unsuspecting travelers like me 
. It's about time someone taught Sonder the hard way that you can't just shut down shop without consequences 
What are they supposed to do? They've already paid for a place to stay and now it's just "bye, bye"? 
It's just not right. I hope Sonder can get back on its feet or at least make sure their staff gets some decent severance package. 
. Has anyone else had issues with short-term rentals like this before? I've heard of other companies having problems too, but still, it's always a bummer when something like this happens 
gotta be all about transparency and fairness now 
. And what about all those guests who were left scrambling for last-minute accommodations? That's some harsh business practice 
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... literally. Bankruptcy and liquidation? That's no fun at all 
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. Maybe Sonder can learn from their mistakes and come back stronger on the other side 
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sonder wasnt that bad lol Marriott just gonna cancel on them like that? its not fair to the employees who were counting on those jobs. i feel for the guests too, they got screwed by marriott's sudden change of heart 
They were supposed to offer a unique alternative to traditional hotels, but it seems like their business model just didn't scale 
. The stats are crazy - according to a report from CB Insights, the average lifespan of a startup in the hospitality industry is just 3 years 
. Sonder's failure is a huge wake-up call for investors and entrepreneurs thinking about getting into the short-term rental game 
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... it's like, what even happened? Did their integration with Marriott just fall apart or something? Anyway, I think this whole thing highlights how vulnerable short-term rental companies are in a crowded market