Boston guests left without rooms as Sonder shutters rentals nationwide
The short-term rental company that operated three properties in Boston abruptly shut down, leaving customers stranded.
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.
The statement followed Marriott’s decision a day earlier, on Nov. 9, to terminate its licensing agreement with the company. Sonder first partnered with Marriott in August 2024 and completed the integration of its listings onto Marriott’s digital channels by June 2025.
Sonder says it also made efforts to find alternative sources of revenue, including the sale of its business and operations, but ultimately was unable to do so.
“We are devastated to reach a point where a liquidation is the only viable path forward,” said Janice Sears, Interim CEO of Sonder, in a statement.
According to online booking websites, Sonder has three properties in Boston, including The Magnolia Apartments in Back Bay, No. 284 Back Bay hotel, and Pierce Boston Apartments in Fenway.
Sonder also owned properties at the 907 Main Hotel in Central Square and the Arcadian Hotel in Brookline.
Already, another boutique hospitality company, Lark Hospitality, has announced it will take over Sonder’s former Cambridge location at 907 Main, a 67-room hotel. The company expects to reopen the property in just a few weeks, with an estimated opening in early December. Lark manages nearly 100 hotels and several restaurants across the country.
On Sunday, guests in Sonder properties received an email from Marriott notifying them that they can no longer continue their reservations and asking them to leave “as soon as you are able.”
Marriott asked guests to book at their other properties, saying, “We deeply regret the disruption this causes and understand how inconvenient this is during your trip.”
On Marriott’s website, it informed guests that Sonder properties were no longer available for new bookings. The company told customers who booked future trips with Sonder to contact their credit card companies to request a refund.
Sonder did not return a request for further information.
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