Sonder's Marriott Default: A Calculated Risk or Fatal Error?
Marriott's abrupt termination of its partnership with Sonder, announced November 9th, 2025, raises more questions than answers. The press release cites "Sonder's default" as the reason, but offers no specifics. In an industry increasingly defined by collaboration, this dissolution stands out—not for its novelty, but for its opacity.
The core issue is simple: Marriott Bonvoy members can no longer earn or redeem points at Sonder properties. Katie Genter from TPG reports a recent stay at a Sonder hotel booked with Bonvoy points, with points and credits successfully posted. This suggests the default wasn't a sudden, catastrophic event, but something brewing over time. Was it financial? Operational? A divergence in brand strategy? Details on the nature of the "default" remain frustratingly scarce.
The Bonvoy Ecosystem: A Closed Loop Under Threat?
Marriott's Bonvoy program is predicated on a closed-loop ecosystem. Members earn points within Marriott's network (hotels, credit cards, partnerships) and redeem them within the same system. The Sonder partnership, announced in 2024, aimed to expand that ecosystem, offering Bonvoy members access to apartment-style accommodations and boutique hotels in over 35 cities. The promise was affordable stays and increased flexibility.
But what if that flexibility came at a cost? Sonder's business model—leasing and managing properties rather than owning them—inherently carries higher risk. Unlike traditional hotels with hard asset backing, Sonder's value is tied to its leases and operational efficiency. If Sonder's occupancy rates or revenue per available room (RevPAR) underperformed expectations, it could strain the partnership.
And this is the part of the report that I find genuinely puzzling. Marriott is not a naive company. They would have done their due diligence before partnering with Sonder. So, what changed? Did Sonder's financial performance deteriorate rapidly? Or did Marriott discover something in Sonder's operations that gave them cause for concern?
Reading Between the Lines: The Data Vacuum
The lack of transparency is deafening. Marriott's press release focuses on supporting guests with existing reservations, which is PR 101. But it avoids the core question: what went wrong? The statement that "the licensing agreement...is no longer in effect due to Sonder's default" is a legalistic black box. It tells us nothing about the underlying cause.
We can speculate, of course. Perhaps Sonder's integration into the Bonvoy ecosystem proved more complex and costly than anticipated. Maybe there were disagreements over branding or service standards. It's also possible that Marriott simply decided that Sonder's customer demographic (younger, more budget-conscious travelers) didn't align with the Bonvoy program's long-term goals. The average daily rate (ADR) at Sonder properties is significantly lower than at traditional Marriott hotels.
The key question is: Did Marriott miscalculate the risk-reward ratio of the Sonder partnership? Or did Sonder simply fail to deliver on its promises? Without more data, it's impossible to say for sure.
A Missed Opportunity or a Smart Exit?
The collapse of the Marriott-Sonder partnership is a stark reminder that even the most promising collaborations can fail. It's a cautionary tale about the risks of expanding too quickly, the importance of due diligence, and the need for transparency in the hospitality industry. This isn't just about Bonvoy points; it's about trust and accountability.