Several Philadelphia rental properties are closing due to Sonder abruptly going out of business Monday — one day after Marriott International terminated its licensing deal with the company.
Sonder offered short-term rentals at boutique hotel and apartments in more than 40 cities worldwide. Last year, Sonder and Marriott agreed to integrate their booking arrangements and systems. But Marriott said Sunday that Sonder properties no longer were available for booking, because the company had defaulted.
MORE: Chef who won Michelin star for seafood restaurant in New York to try his hand at pizza in Philly
On Monday, Sonder said “prolonged challenges” in its integration process with Marriott contributed to its financial constraints. The San Francisco-based company said it planned to filed for bankruptcy and liquidate its assets.
Neither Sonder nor Marriott responded to questions about the exact Philadelphia properties this affected, and their websites no longer list properties available to book. But as of Monday, TripAdvisor listed four properties where Sonder bookings could be made:
• The Arco, 1234 Locust St.
• Sonder The Witherspoon Apartments Center City, 130 S. Juniper St.
• The Queen Hotel Queen Village, 628 S. Fifth St.
• The Edison, 312 N. Second St.
Guests at The Witherspoon were told they had 24 hours to leave the premises, 6ABC reported. Future guests were encouraged to reach out to Marriott for refunds.
A sign posted to its front door notified people of its closure. It reads “This Sonder Property is now closed. All operations have ceased as of November 10th 2025. If you have an active reservation for this property, please contact Marriott Customer Care at 1-800-535-4028. We sincerely apologize for the disruption and thank you for understanding.”
No such sign was posted at The Arco, which sits a couple blocks away.
Similar scenes played out elsewhere in the country, too. One traveler who had booked a 10-night stay at a Sonder hotel in New York City told CNBC that the entire building was asked to vacate by 9 a.m. Monday. “People were scrambling to leave before they locked down the building,” she said.
Sonder, which once was viewed as a competitor to Airbnb, plans to file for Chapter 7 liquidation of its U.S. businesses. In a statement, the company said it made “comprehensive efforts” to evaluate alternatives to liquidation, including a sale of its business and operations, in an effort to boost its financial standing.
“We are devastated to reach a point where a liquidation is the only viable path forward,” Janice Spears, interim CEO of Sonder, said in a statement. “Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.”
Source link