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Marriott, Sonder split over default

The duo signed a licensing agreement in 2024

Marriott, Sonder split over default

Marriott International terminated its licensing agreement with Sonder Holdings Inc. on Nov. 9 citing a default by the latter.

Summary:

  • Marriott terminated its licensing agreement with Sonder on Nov. 9.
  • Sonder properties are no longer bookable through Marriott channels.
  • The companies signed the agreement in 2024.

MARRIOTT INTERNATIONAL TERMINATED its licensing agreement with Sonder Holdings Inc., saying the smaller company was in default. Marriott entered into the agreement with the San Francisco-based lodging firm in 2024.


Sonder properties are no longer available for booking through Marriott’s channels, including marriott.com, the Marriott Bonvoy app and reservation centers, Marriott said in a statement. The company’s priority is supporting guests currently at Sonder properties and those with upcoming reservations.

“Marriott will contact guests who booked through its channels to address their reservations. Guests who booked through third-party travel sites should contact those providers,” the company said. “The company is working to minimize disruption to travel plans. Guests with questions about reservations at Sonder properties booked through Marriott channels can contact Marriott customer service.”

Sonder, launched in 2014, operates apartments and boutique hotels in more than 40 markets across ten countries, according to its website. The Sonder app allows guests to manage their stays, including self-service check-in and 24/7 support.

In October, the company reported a 13 percent increase in RevPAR in the second quarter but an 11 percent decrease in revenue year-over-year to $147.1 million. Its net loss for the quarter was $44.5 million.

Marriott reported a 0.5 percent increase in worldwide RevPAR and record year-to-date development signings in the third quarter. Its global development pipeline reached 3,923 properties with over 596,000 rooms.

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US Extended-Stay Hotels Outperforms in Q3

Report: Extended-stay hotels outpace industry in Q3

Summary:

  • U.S. extended-stay hotels outperformed peers in Q3, The Highland Group reported.
  • Demand for extended-stay hotels rose 2.8 percent in the third quarter.
  • Economy extended-stay hotels outperformed in RevPar despite three years of declines.

U.S. EXTENDED-STAY HOTELS outperformed comparable hotel classes in the third quarter versus the same period in 2024, according to The Highland Group. Occupancy remained 11.4 points above comparable hotels and ADR declines were smaller.

The report, “US Extended-Stay Hotels: Third Quarter 2025”, found the largest gap in the economy segment, where RevPAR fell about one fifth as much as for all economy hotels. Extended-stay ADR declined 1.4 percent, marking the second consecutive quarterly decline not seen in 15 years outside the pandemic. RevPAR fell 3.1 percent, reflecting the higher share of economy rooms. Excluding luxury and upper-upscale segments, all-hotel RevPAR dropped 3.2 percent in the third quarter.

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