Sonder Locks Down Marriott Licensing Deal, Gets Additional Financing

Courtesy of Sonder
A Sonder Unit In The Industrialist Property In New York

Short-term rental operator Sonder Holdings has entered into a licensing agreement with Marriott that will integrate 9,000 Sonder units into Marriott's Bonvoy brand.

The deal will mean Sonder rooms can be booked on Marriott’s platforms as “Sonder by Marriott Bonvoy" rooms, the hospitality company announced.

“We are excited about this new agreement, which is set to expand our portfolio of longer-stay accommodations in key markets around the world,” Marriott International Global Officer of Mergers and Acquisitions, Business Development and Real Estate Tim Grisius said in a release.

Sonder also announced that it secured commitments for $43M in preferred equity and has another $83 million in liquidity from its existing lenders.

Sonder shares more than doubled Monday, Bloomberg reported, and had reached $5.50 per share by afternoon.

The firm, which operates rentals in apartment buildings and hotels globally, has seen its valuation take a hit since its February 2022 peak of more than $2B, according to Bloomberg.

In June, Sonder announced plans to shutter 3,200 units across 80 locations. Around the same time, it warned investors that some of its most recent financial reports were not reliable.

"Sonder has been relentlessly focused on operational efficiency to deliver long-term profitability and these actions are the next step in achieving that goal," Sonder Board of Directors Lead Independent Director Janice Sears said in a release.

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