Marriott & Sonder Split: A Case Study in Overhyped Partnerships
In a somewhat surprising move, Marriott International has terminated its partnership with Sonder, the apartment-style accommodations and boutique hotel group. The press release, issued November 9th, 2025, cites "Sonder's default" as the reason for the dissolution of the licensing agreement. While the specific nature of this default remains undisclosed, the implications for both companies—and, more importantly, travelers—are significant.
The Bonvoy Fallout
The immediate impact is clear: Sonder properties are no longer bookable through Marriott channels, and Marriott Bonvoy points can no longer be redeemed for Sonder stays. This is a blow to Bonvoy members who appreciated Sonder's often more affordable urban locations. Marriott is reassuring guests with existing bookings made directly through them that they will be supported. Those who booked via third-party platforms are, predictably, on their own.
In 2024, the initial announcement of the partnership was met with enthusiasm. Sonder, with its presence in over 35 cities, offered Marriott a way to tap into a different segment of the market – the travelers seeking apartment-style accommodations, and extended stays that traditional hotels don't always provide. The promise was a full integration into the Bonvoy ecosystem, with points earning and redemption capabilities. The actual integration, however, appears to have been less than seamless, culminating in this abrupt termination.
Katie Genter from The Points Guy (TPG) reported that she checked out of a Sonder property in Amsterdam just days before the announcement, earning both elite night credits and Bonvoy points. This suggests that the problems leading to the default may have been relatively recent or, at least, not immediately apparent to guests. The fact that points were still being awarded so close to the termination date raises questions about the transparency and communication between Marriott and Sonder during this period. It also prompts one to wonder whether Marriott had a reason to believe this was coming, and if so, why they didn't cut it off sooner. Marriott announces termination of partnership with Sonder
Room Growth Revisions
Marriott's initial projections for net room growth in 2025 were around 5%, partially fueled by the inclusion of Sonder properties. With the partnership now defunct, that figure has been revised downward to 4.5%. That's a 10% reduction in expected growth (0.5/5 = .1, or 10%). While half a percentage point might seem trivial, it represents a significant number of rooms and potential revenue, especially in a market as competitive as hospitality.
Sonder, on the other hand, faces a much steeper challenge. The loss of Marriott's distribution channels and marketing reach is a major setback. Without the Bonvoy affiliation, Sonder will need to work harder to attract and retain customers. It is likely to impact Sonder's expansion plans, as their ability to attract new customers will be severely affected.
This situation highlights the inherent risks in partnerships, particularly those involving companies with different business models and operational scales. While Marriott is a global giant with a well-established infrastructure, Sonder is a relatively newer player in the hospitality space. The "default" cited by Marriott suggests that Sonder may have struggled to meet its obligations under the licensing agreement, whether those were financial, operational, or related to quality control.
I've looked at hundreds of these partnership announcements, and what's always missing is the downside risk. Everyone focuses on the upside, and the increased distribution, but nobody wants to talk about the potential for things to fall apart.
The Volatility of Hospitality
This termination serves as a warning about the volatility of large-scale partnerships in the hospitality sector. A contractual default, whatever its cause, has led to widespread ramifications for both companies and, most importantly, travelers. Tourists looking for a seamless experience and the ability to use their loyalty points may now face delays, cancellations, and fewer options for accommodation in popular travel destinations.
The bigger question remains: will other hotel chains follow Marriott’s lead in cutting ties with non-traditional accommodation providers like Sonder? If so, the future of modern tourism could look very different, with travelers navigating an increasingly fragmented hospitality market. This would mean more challenges than ever before. Marriott Ends Partnership with Sonder, Disrupting Global Tourism
A Case Study in Misaligned Incentives
Marriott's split with Sonder isn't just a blip; it's a symptom. The root cause? A mismatch in long-term incentives. Marriott is driven by consistent quality and brand control; Sonder, by rapid growth and disruption. Those goals were always going to collide.
