Chaos and Tears as Marriott Guests Kicked Out Mid-Stay After Partner’s Sudden Bankruptcy
Breaking: Thousands of travelers were kicked out mid-vacation after Marriott’s partner Sonder abruptly filed for Chapter 7 bankruptcy, sparking global outrage and confusion from New York to Dubai.
Travelers Left Stranded After Marriott-Partnered Sonder Shuts Down Overnight
Guests woke up to eviction notices this week as Sonder Holdings, the once-$1 billion short-term rental brand licensed under “Sonder by Marriott Bonvoy,” collapsed into bankruptcy.
The closure hit without warning. Lobbies locked, staff dismissed, and personal items left in hallways as the company’s global network of boutique hotels and apartments shut its doors.
“We are devastated to reach a point where liquidation is the only viable path forward,” said interim CEO Janice Sears.
The fallout stunned the travel industry — and blindsided Marriott’s loyalty members who booked Sonder stays directly through Marriott.com, expecting the same standards as traditional Marriott hotels.
Marriott Guests Say They Were Ordered Out With Less Than 24 Hours’ Notice
“I received a message from Sonder giving me less than 24 hours to vacate because its partnership with Marriott was terminated,” traveler Katelyn Caralle posted on X.
Retired tech executive Steve McGraw, who holds Marriott Bonvoy Elite status, said his New York stay was abruptly canceled halfway through a 17-day booking.
“We ended up spending thousands more to find a new place. It was very disruptive,” McGraw said.
In Boston, Paul Strack found his belongings piled in plastic bags in the hallway. “They packed up my clothes, toiletries, computers — everything. It was impersonal and shocking.”
Even Sonder employees were caught off guard. Harvard student Alec Arritola said the hotel manager “was in tears” after learning she’d lost her job the same morning guests were told to leave.
Inside Sonder’s Sudden Collapse
Sonder had operated in more than 40 global cities, promising design-forward stays at lower prices than hotels. But sources say integration with Marriott’s booking systems failed, and revenue plunged through 2025.
The hospitality tech firm, already burdened by debt and high vacancy rates, couldn’t recover. When Marriott terminated its license, Sonder had no cash to operate — triggering immediate Chapter 7 liquidation instead of restructuring.
Marriott said in a statement it was “deeply disappointed” and that Sonder “operated independently under license.” The brand promised to “support impacted travelers where possible.”
💼 Know Your Rights If a Hotel Goes Bankrupt Mid-Stay
Consumer lawyers say stranded guests have legal protections — even when a hotel partner goes under:
1. Credit Card Chargebacks: If you prepaid and didn’t receive your full stay, contact your card issuer immediately. The Fair Credit Billing Act allows chargebacks for undelivered services.
2. Marriott and Booking Portals: Travelers who booked through Marriott.com or partner sites may qualify for reimbursement under platform guarantees or bundled travel insurance.
3. State and Federal Protections: Many states require refunds for canceled lodging. File complaints with your state attorney general or the FTC if the company doesn’t respond.
4. Travel Insurance: Look for “supplier default” coverage, which often includes hotel bankruptcies.
5. Document Everything: Save receipts, emails, and photos of belongings or damage — crucial evidence if you pursue reimbursement or insurance claims.
Consumer rights experts advise: “If your hotel shuts down mid-stay, stay calm and document everything. You have the right to retrieve your belongings and request a refund for any unused nights.”
Industry Fallout: Marriott Faces Tough Questions
Analysts say the Marriott–Sonder meltdown exposes the fragile trust between global hotel chains and tech upstarts.
“People didn’t book Sonder — they booked Marriott,” said McGraw. “That logo meant security, and now that trust is gone.”
Industry analysts say the collapse is a wake-up call for franchised and licensed hotel models. Many travelers assume they’re staying in a Marriott-managed property, when in fact the brand often licenses its name to third-party operators.
The collapse leaves hundreds of employees jobless and thousands of guests seeking refunds — and could push regulators to tighten rules around brand licensing in hospitality.
Why This Story Matters
Sonder’s demise is one of the largest hospitality bankruptcies since 2020, signaling wider stress in the travel-tech sector as inflation and over-expansion take their toll.
It’s also a reputational challenge for Marriott, which must reassure customers that Bonvoy points, bookings, and loyalty trust remain safe despite the partner fallout.
With investigations underway in both the U.S. and EU into Sonder’s financial practices, this story is far from over.
