Sonder, a hotel rental company, has announced the immediate wind-down of its operations after filing for Chapter 7 bankruptcy on Monday, November 10, 2025. This decision initiated the liquidation of the company's business in the United States and insolvency proceedings overseas, profoundly impacting its guests and partners. The collapse comes after Marriott Hotels terminated its licensing agreement with the San Francisco-based firm on Sunday, following Sonder's default on an August 2024 agreement.

The termination of the licensing deal created a vacation nightmare for many guests, who reported being abruptly kicked out of their rental accommodations. Former tech executive Steve McGraw recounted being evicted from his 17-day rental just a week into his stay with his family, including a newborn granddaughter. He stated, "We ended up spending several thousand dollars more to find a new place. It was very, very disruptive. They treated us so poorly." Another guest in Montreal documented her struggle on TikTok, dragging luggage through the city after being told to vacate her hotel room, booked for an additional three nights, due to the breakup between Marriott and Sonder. Travel influencers, such as 'Reece.travelling', also shared their predicaments, claiming to have become "homeless" due to the sudden contract termination.

Sonder, once valued at $1 billion and considered a rival to Airbnb, operated by leasing and managing properties directly, allowing customers to book apartments globally. Its licensing deal with Marriott International enabled customers to access approximately 10,500 hotel rooms worldwide. However, with the company's bankruptcy filing, Sonder customers who booked stays through the platform were evicted and ordered to vacate properties immediately. This turn of events led to widespread travel disruptions, including cancelled prior reservations and guests around the world being left without accommodation plans, marking a severe travel nightmare for many.