Sonder Abruptly Shuts Down After Marriott Exits Partnership
Published Monday, November 17, 2025 11:00 am
by Megan Cerullo

This is a summary

"Sonder, a short-term rental company and former Airbnb rival, abruptly went out of business after Marriott ended its licensing deal on Nov. 9 — leaving guests scrambling as they were told to vacate their rooms immediately, according to accounts shared with CBS News and on social media.

Paul Strack, 63, visiting Boston from Little Rock, Arkansas, told CBS News he received an email from Marriott on Sunday about his Sonder stay, but he initially mistook it for a scam. The email said that Marriott's agreement with Sonder had ended, and that "we are unable to continue your reservation beyond today."

"[W]e are kindly requesting that you check out of the property as soon as you are able," the email read, according to a copy obtained by CBS News. 

Because he had mistaken it for spam, he ignored it. But on Monday, after exploring Boston and returning to the family's accommodation at the end of the day, Strack found his room's door wide open and his family's belongings packed up and left in a hallway.

"Even our dirty clothes and toiletries were packed up, and our laptops were in plastic bags," he told CBS News."

Read the original on CBS News

Sonder Abruptly Shuts Down After Marriott Exits Partnership | CBS News

Image credit to Andrea Davis on Unsplash

Sonder Abruptly Shuts Down After Marriott Exits Partnership | CBS News

Go back | Show other stories | Send this page to a friend
Recent News

Francesca’s files for bankruptcy; closing all stores

After 25 years of operations, Houston-based women's clothing and accessories chain Francesca's filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey, with plans to close all approximately 400 stores across 45 states and liquidate. The filing came after a convergence of factors including a 2023 data breach, failed investments in non-core brands, supply chain disruptions after two major suppliers lost their own funding, and the failure of an anticipated capital infusion in December 2025. The company carries about $30.1 million in secured debt, with between $10 million and $50 million in consolidated assets and approximately 1,000 to 5,000 creditors, including landlords Simon Property Group and Tanger Properties listed among its top 30 unsecured creditors. This marks the second bankruptcy filing in six years for Francesca's, which was previously sold out of bankruptcy in January 2021 to an affiliate of private equity firm TerraMar Capital for $18 million.

What to watch in retail in 2026

Retail industry trends for 2026 include continued AI adoption for product research and customer service, value-seeking consumers driving traffic to discount retailers, and shopping malls experiencing a rebound with renewed investment in mixed-use projects. Mall foot traffic increased in 2025, with indoor malls seeing a 1.8% rise in visits and visit durations up 3.3% compared to the first half of 2024, as traditional retail shopping centers transform into destinations for entertainment and experiences. Industry executives remain optimistic, with 96% expecting revenue growth and 81% anticipating margin expansion in 2026, despite challenges including weakened consumer buying power, high interest rates, and competition from mass merchants and value retailers. Specialty retailers face particular vulnerability in 2026 as high interest rates, shifts toward online shopping, and aggressive competition from mass merchants are predicted to push overleveraged companies into bankruptcy.

Bain & Co.: U.S. retail sales to grow 3.5% in 2026

U.S. retail sales are projected to grow 3.5% year-over-year in 2026 to reach $5.3 trillion, slightly down from estimated 4.0% growth in 2025, according to Bain & Company's 2026 Global Retail Sales Outlook. Volume growth will remain modest with inflation projected between 2.6% and 3.0%, as mounting consumer strain and declining confidence affect spending amid economic uncertainty, rising unemployment, and slowing labor supply growth. Bain's Consumer Health Index found that sentiment among higher-income U.S. households, who account for more than half of retail spending, declined in January 2026. The report notes that shoppers increasingly gravitating toward lower-priced and private label goods could create a "flight to value" that tempers nominal sales growth, though reduced taxes, declining fuel prices, and potential interest rate cuts could bolster consumer sentiment and spending power.