Marriott International has leveled serious accusations against hospitality start-up Sonder, asserting that the company endangered the wellbeing of thousands of guests as a means of exerting financial pressure. According to Marriott’s legal filings, Sonder allegedly threatened to place travelers in precarious and potentially unsafe situations unless Marriott agreed to fund the collapsing company’s wind-down process, a demand characterized as both extreme and unethical.
In an emergency motion submitted late Friday as part of Sonder’s Chapter 7 bankruptcy proceedings, Marriott’s lawyers described a situation in which Sonder, shortly before announcing its bankruptcy declaration, allegedly sought to use guest safety as a strategic point of leverage in negotiations. The short-term rental operator, they claimed, acted with disregard for the immediate impact on travelers, some of whom were staying in Sonder-managed rooms under the Marriott brand’s licensing agreement. By portraying guest welfare as a bargaining chip, Sonder, according to the motion, positioned itself to compel financial support from Marriott even as its own operations were unraveling.
Marriott’s attorneys further argued that Sonder issued direct threats, warning that if Marriott refused to contribute to the costs of an organized shutdown, the firm would disable critical hotel management systems and effectively lock paying guests out of their accommodations, often mid-stay. Such an action, if carried out, would have left travelers unable to access personal belongings, potentially including essential items such as medications, passports, and other valuable possessions. More distressingly, the guests—stranded and without alternatives—would have been left without shelter or basic necessities as Sonder’s operational collapse unfolded.
In their Delaware bankruptcy court filing, Marriott asserted that it had terminated its long-standing licensing agreement with Sonder earlier in the month after being informed that the San Francisco-based rental operator was facing an irreversible liquidity crisis. Marriott alleged that Sonder had warned it was on the brink of an uncontrolled ‘free-fall liquidation’ and intended to abandon thousands of guests currently residing in its global network of properties spanning multiple continents. Given these circumstances, Marriott concluded that its immediate termination of the agreement was a necessary protective measure, enabling the hotel chain to communicate directly with the affected guests and safeguard their safety, security, and overall welfare amid the looming disruption.
The filing emphasized that Marriott had acted out of necessity rather than choice. The company claimed that Sonder’s abrupt collapse required urgent management intervention to prevent a humanitarian and reputational crisis in which countless guests could have found themselves stranded. Accordingly, Marriott stated that it had to assume responsibility for outreach to guests who were in danger of being neglected entirely once Sonder’s systems and personnel ceased functioning.
As of Monday, representatives for Sonder had not issued any public response to Business Insider’s inquiries regarding Marriott’s allegations. The silence followed a chaotic series of events culminating on November 9, the eve of Sonder’s announcement that it would seek bankruptcy protection and cease its U.S. operations with immediate effect. On that same day, Marriott declared the formal termination of its licensing agreement, a decision that rippled swiftly through the network of hotels and short-term rentals affiliated with Sonder.
The abrupt conclusion of Sonder’s operations reportedly unleashed widespread confusion among travelers. Guests, who had made reservations in good faith, suddenly found themselves instructed to vacate their lodgings on minimal notice. In some cases, the disruption occurred within hours, leaving customers scrambling for new accommodations. According to Business Insider’s reports, Marriott sent urgent email notifications to guests staying in properties managed by Sonder, instructing them to check out by 11 a.m. on November 10, only a day after the announcement of Sonder’s imminent shutdown.
Marriott reiterated in its legal statements that it had never operated Sonder-branded properties directly, nor had it handled or received any payments for bookings made under Sonder’s management—even those processed through Marriott’s reservation systems prior to the termination. Nonetheless, the hotel group asserted that it had intervened to uphold the fundamental principles of guest care and human decency that the hospitality industry demands. In the words of its attorneys, Marriott acted to protect not only the physical safety of travelers but also their dignity and peace of mind, stepping in precisely when Sonder’s financial implosion left countless individuals without guidance or support.
Sonder, headquartered in San Francisco and once celebrated for its disruptive business model blending apartment-style accommodations with hotel-like consistency, officially entered Chapter 7 liquidation proceedings on Friday. The filing marks the final phase of dissolution for the company’s global network of rental units and boutique properties, signaling the end of a venture that had expanded rapidly across several continents before succumbing to financial distress.
This story continues to develop as legal proceedings advance and additional details emerge about the fallout affecting guests, partners, and investors. Further updates are expected as the case progresses in the Delaware bankruptcy court.
Sourse: https://www.businessinsider.com/marriott-sonder-guest-safety-bargaining-chip-bankruptcy-2025-11
