Marriott said it lost $23 million in letting go of Sonder

"On a Tuesday earnings call, Marriott's outgoing finance chief, Leeny Oberg, said Marriott incurred a $23 million loss from terminating its contract with the luxury short-term rental company Sonder in November. A Tuesday earnings report said the $23 million in charges came from termination expenses and the write-down of Marriott's licensing agreement with Sonder. Oberg added that it was a one-time expense."

"In November, Marriott made headlines for giving its guests staying at Sonder properties short notice to vacate. Affected guests that Business Insider spoke to said they scrambled to find alternative accommodations at exorbitant costs, and had their vacations ruined by the experience. Guests also described Marriott flip-flopping on its refund policy. The hotel chain initially assured guests who had booked Sonder properties through Marriott's channels that they would get a full refund."

"Sonder workers described the chaos and confusion of the messy breakup to Business Insider, saying they found out from the news that they would be losing their jobs. Shortly afterward, Sonder, a onetime Airbnb rival founded in 2014, filed for Chapter 7 liquidation proceedings in a Delaware federal bankruptcy court. Its stock price crashed. Despite the hit from Sonder's termination, Marriott reported strong financial results in the latest quarter."

Marriott recorded a $23 million charge tied to terminating its licensing agreement with Sonder, comprised of termination expenses and an impairment write-down. The termination prompted short-notice vacates for guests at Sonder properties, leading some guests to find costly alternative accommodations and experience ruined vacations. Guests reported an initial assurance of full refunds followed by instructions to seek refunds through credit card companies. Sonder employees reported learning about job losses from news reports. Sonder subsequently filed for Chapter 7 liquidation and its stock plunged. Marriott reported quarterly revenue of $6.69 billion, a 4% year-over-year increase and a 1.9% rise in revenue per available room.

Read at Business Insider