Sonder, the short-term rental company in major cities around the world, announced last week that it is winding down operations immediately. On Monday, November 10, the firm revealed plans to file for bankruptcy in the US to liquidate its assets and to initiate insolvency proceedings in other countries where it operates.

In Dubai, Sonder offered apartments in popular areas such as Downtown Dubai, Business Bay, JBR, and Dubai Marina, promoting them as premium, fully serviced short-term rentals. Property owners or developers in Dubai who worked with Sonder may now need to re-list their units on other platforms or switch to traditional leases. Attempts to book any of the Dubai properties through Sonder have been unsuccessful.

The company describes itself as a global operator of "premium, design-forward apartments and intimate boutique hotels serving the modern traveler". According to a statement, it cited financial challenges related to its agreement with hotel operator Marriott International as a key factor behind the shutdown.

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Sonder's sudden global shutdown has left tenants flabbergasted. Social media lit up after customers were abruptly asked to vacate the property.

A tourist in Dubai recounted her experience after being“evicted” from her hotel on November 12.“We checked in two days ago and we're getting evicted!” she posted on TikTok.“Basically homeless in Dubai,” she added, though the video was later removed.

Other tourists with bookings at Dubai properties through third-party platforms have been looking for updates and sharing concerns across social media channels, including Reddit.

"How is this even a thing to be able to kick people out of their reservation, and not even honour their reservation and leave them scrambling without any support?" a TikTok user wrote.

Many posted about their exit on social media:

Marriott terminates Sonder agreement

Marriott on Sunday said its licensing agreement with Sonder has been terminated due to a default from the lodging rentals company. As a result of the termination, Marriott said Sonder is no longer affiliated with Marriott Bonvoy, adding that Sonder properties are not available for new bookings on Marriott's channels.

Janice Sears, Interim Chief Executive Officer of Sonder, said,“We are devastated to reach a point where a liquidation is the only viable path forward.“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder's participation in Marriott's Bonvoy reservation system. These issues persisted and contributed to a substantial and material loss in working capital. We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets.”

Sears continued,“The Board and I are deeply grateful to our employees for their longstanding dedication to putting the guest experience at the center of everything we do. Due to their passion and effort, Sonder spent the last decade redefining hospitality with remarkable and accessible guest stay experiences. On behalf of the entire Sonder team, we express our gratitude to our guests and partners for their business and support over the years.”

The release said, additional information regarding the court proceedings and wind-down, including the status of the Company's operations outside the U.S., will be made available by the Chapter 7 Trustee or the Company's international subsidiaries in due course.

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