Sonder’s ticket to recovery

Since Sonder announced its strategic partnership with Marriott on Monday, the company’s share price has steadily risen to around US$6 at the time of writing – up from around $2.5 on Friday last week. It’s a reassuring sign for struggling Sonder, which laid off 17 per cent of its corporate workforce in February 2024, followed by plans to exit or reduce rents in 105 buildings (4,300 units) announced in June. While it’s a long way from the previous traded high of $202.20 in February 2022, Sonder has aligned itself with one of the most powerful hospitality brands in the market, restoring some confidence in its future success.

The Sonder by Marriott Bonvoy collection – including 9,000 live units by the end of 2024 with 1,500 units to follow next year – will be available to book on Marriott’s website as well as its mobile app Marriott Bonvoy. Tim Grisius, global officer – M&A, business development and real estate at Marriott International, said: “Marriott has long believed in providing the right product at the right price point for all trip purposes and generations of travellers. With the planned addition of Sonder by Marriott Bonvoy, we will be able to provide guests seeking apartment-style urban accommodations with even more options in the Marriott Bonvoy portfolio.”

The partnership will open up new markets and customer segments for Sonder, including Marriott’s 210 million loyalty members, leading to increased revenue potential. The challenge lies within educating guests on the new offering and managing expectations; as a more flexible and independent operator, Sonder is less experienced in upholding rigorous brand standards. I’m curious to see how the partnership will unfold when the full integration is expected in 2025.

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