The recent closure of the Sonder hotel chain has sent shockwaves through the hospitality industry, as the extended-stay hotel operator suspended all operations due to a licensing dispute with parent company Marriott Bonvoy. This abrupt closure was effective as of November 10, with Marriott International announcing that its licensing agreement with Sonder Holdings had been terminated due to its default.
The sudden stop of operations affected locations not only in downtown St. Paul but also across numerous cities worldwide, including multiple sites in Minneapolis and cities as far-flung as Nashville and Rome. In St. Paul, the Fitz apartments at 77 9th St. E. displayed an official notice informing patrons of the closure, advising anyone with active reservations to reach out to Marriott Customer Care for assistance.
Reports indicate that many guests were caught off guard by the closure, with some given minimal notice – as short as 15 minutes – to leave their accommodations. This has raised concerns among travelers worldwide, sparking questions about the future of hospitality partnerships and customer service in the wake of such abrupt business decisions.
The Fitz, located near Minnesota Public Radio, was previously the Naomi Family Residences before being sold by the Union Gospel Mission in 2022. This sudden closure has left many guests scrambling to find alternative arrangements, as the hotel was seen as a suitable accommodation option in the area.
In light of this situation, Marriott Bonvoy has urged patrons to explore other properties within their extensive portfolio. Guests with prepaid reservations are advised to seek refunds through their credit card banks and contact customer service for potential rebooking at other Marriott properties.
The disruption comes as Hotel Investment Today reported that Sonder, which once posed a significant challenge to platforms like Airbnb, plans to file for Chapter 7 bankruptcy protection. The company had previously garnered a valuation exceeding $1 billion in 2019 and went public in 2022, but consistently struggled with profitability. In 2024, Sonder entered a licensing agreement with Marriott International and rebranded as Sonder by Marriott Bonvoy, hoping to revive its fortunes amidst the challenging market dynamics.
As the dust settles, the future of Sonder and its employees, along with the impact on the travel plans of countless guests, remains uncertain.
