On Sunday, Nov. 9, TPG reported that Marriott announced the termination of its licensing agreement with Sonder, a hospitality company that runs short-term rentals and boutique hotels in over 35 cities worldwide. Now, Sonder has announced that it’s “winding down operations immediately and expects to initiate a Chapter 7 liquidation of its U.S. business,” according to a statement made by the company. To read more about Marriott’s former partnership with Sonder, take a look at our story from earlier this week.
“We are devastated to reach a point where a liquidation is the only viable path forward,” said Janice Sears, interim CEO of Sonder, in the company statement.
Now, many guests (including TPG staff) have been left wondering: What comes next?
Reimbursements but no discounted rebookings
Those who are currently traveling and have been asked to check out of their Sonder properties in the past couple of days are certainly in the stickiest situation.
One reader wrote in saying that while staying at a Sonder property, he received an email from Marriott informing him that the agreement between Marriott and Sonder Holdings had ended and that Marriott could no longer continue their reservation.
“We are kindly requesting that you check out of the property as soon as you are able,” the email read.
Marriott went on to apologize for the inconvenience, explained that a refund for the remaining portion of the stay would be processed as soon as possible and said that Marriott’s Customer Care team is prepared to secure alternative stays.
The biggest issue is that many people aren’t being offered any sort of discounted rate for new stays, which means rates, especially day-of ones in major cities, will be sky-high.
Another reader, a Marriott Bonvoy Gold Elite member located in the U.K., wrote to TPG and explained that she had booked a three-night nonrefundable stay at Sonder Le Guerin in Montreal. The booking was made through Marriott’s U.K. website via the British Airways Avios eStore.
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Marriott informed her that her reservation was canceled less than 24 hours before her upcoming stay and offered her 40,000 points to rebook at a new hotel. The reader ended up having to pay cash for the remaining two nights of her stay at the new property, totaling more than her original three-night stay. Marriott told her that her original Sonder booking would be reimbursed, but she has yet to get the reimbursement.
How to ensure you’ll be reimbursed
It’s important to note that while Marriott and Sonder had a partnership, Sonder is the company that’s technically responsible for providing reimbursements — but since the company will be liquidating, it’s unable to do so.
Marriott has communicated to Sonder guests that reimbursements for their original stays will come, but how those reimbursements will happen is a bit confusing. While guests can contact Marriott to discuss their reimbursement, it’s best to contact credit card companies directly to dispute the charge and obtain a refund for the original booking. This information is outlined on Marriott’s Sonder FAQ page, where it says the following:
“If you made your reservation for a Sonder property that was booked through Marriott channels, including Marriott.com, Marriott Bonvoy Mobile App, the Customer Engagement Center, and Fliggy, we recommend that you contact your credit card issuing bank to initiate a refund request to ensure your refund is accurately recorded. Any refund will be processed on the card which the pre-payment was processed. Marriott will provide support in facilitating the refund process that you initiate, however since Marriott didn’t charge the card, we will coordinate with the appropriate parties, including card processors, as appropriate to facilitate the refund as quickly as possible.”
What to do if you’re currently traveling
If you are currently being asked to check out of your Sonder booking — or you’ve already done so in the past few days — the best course of action, for now, is to communicate with Marriott via its reservations center (phone numbers by brand and destination can be found here). The company’s Customer Support team, in the U.S. and Canada, can be reached at 1-800-535-4028.
While it sounds like results are variable, Marriott should, at the very least, help guests get reimbursed for the rate of their original stay and assist in rebooking at a new Marriott property in the area — though it sounds like discounted rates (cash or points) are not a guarantee at this time.
What to do if you’ve booked an upcoming Sonder stay through Marriott
If you have a Sonder stay booked, you should cancel the reservation immediately and file a dispute with your credit card company for the original booking. This should ensure that you’ll be refunded for the original price of your booking. For now, use the numbers mentioned (or linked to) above to get in touch with Marriott to rebook your trip.
TPG has reached out to Marriott with specific questions about what Marriott Bonvoy members can expect at this time, and we’ll update this story as we learn more.
