Sonder had years of red flags before Marriott made a deal - and travelers got left in the lurch

"Long before guests found themselves abruptly kicked out of their "Sonder by Marriott" stays this month, Sonder, the Airbnb rival, was battling sloppy accounting, a litany of lawsuits, and a stock price so low it was nearly delisted from the Nasdaq. Bankruptcy filings and SEC records show just how stark the signs were - and raise questions about why Marriott, the world's biggest hotel chain, got into bed with the one-time unicorn. The San Francisco startup, founded in 2014, leased apartments and hotel rooms in bulk, redesigned them with a minimalist aesthetic, and rented them to travelers."

"It's the brainchild of Canadian Francis Davidson, who is the ideal of a 2010s founder: VC-backed, college dropout, Forbes 30 Under 30. He offered a " revolutionary" promise: Goodbye, poorly decorated Airbnbs with quirky hosts. Hello, streamlined rentals managed with modern technology. In August 2024, he unveiled his pièce de résistance: a deal between Sonder and blue-chip Marriott, which was heralded as a way to bring that vision into the future."

Sonder grew by leasing apartments and hotel rooms in bulk, redesigning them with a minimalist aesthetic, and renting them to travelers. The company faced sloppy accounting, numerous lawsuits, and a stock price that nearly led to Nasdaq delisting. Bankruptcy filings and SEC records documented severe warning signs before a high-profile partnership with Marriott. Founder Francis Davidson presented a modern, tech-managed rental model and announced a deal adding 9,000 rooms and promised cost reductions. Since going public at a $2 billion valuation in 2021, Sonder experienced layoffs, executive departures, and unresolved financial pressures.

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