Boston guests left without rooms as Sonder shutters rentals nationwide

"The San Francisco-based short-term rental and boutique hotel company Sonder abruptly shut down operations Sunday as it prepares to file for bankruptcy, leaving guests and employees scrambling. The Airbnb rival operated three properties in Boston - two in the Back Bay and one in Fenway. On Monday, Sonder announced it was "winding down operations immediately" as it was preparing to file for bankruptcy following financial struggles tied to its Marriott partnership."

"According to the company's 2024 annual report, Sonder launched in 2014. As of Dec. 31, 2024, the company had over 9,000 units across 41 cities and nine countries. The company had 704 employees in the U.S. and 717 employees located in 13 other countries. The company also plans to initiate insolvency proceedings in the other countries in which it operates."

"Over the past several years, the company said it has struggled to gain traction in a highly competitive market, resulting in net losses and negative cash flow each year since its inception. The annual report said that the company had accumulated a deficit of $1.6 billion by the end of 2024. In the Monday announcement, Sonder said it was facing "severe financial constraints" stemming from challenges integrating its systems and booking platform with Marriott International."

Sonder abruptly shut down operations and prepared to file for bankruptcy, leaving guests and employees stranded. The company operated three properties in Boston and had more than 9,000 units across 41 cities in nine countries as of Dec. 31, 2024. The firm employed 704 people in the U.S. and 717 in other countries and plans to initiate insolvency proceedings where it operates abroad. Sonder reported net losses and negative cash flow every year and carried a cumulative deficit of $1.6 billion at the end of 2024. Severe financial constraints followed challenges integrating its systems and booking platform with Marriott, whose licensing agreement was terminated. Efforts to sell the business or find alternative revenue failed, and leadership said liquidation became the only viable path.

Read at Boston.com