Travel & Leisure – 2025 Year-End Update

The Big Story

Sonder's Collapse

Effective cash management is an ongoing discipline for any company, not just a distress exercise. In November 2025, Sonder — once valued at $2.2 billion — abruptly filed for Chapter 7 bankruptcy, giving guests less than 24 hours to vacate properties.² While sudden, Sonder Holdings' public financials reveal warning signs that could have prompted earlier action, though we cannot say for certain it would have changed the outcome.

The Master Lease Model

Sonder operated by signing long-term master leases — typically five to 10 years — with property owners at fixed monthly rates.⁵ Sonder would then furnish, brand, and operate these units as "design-forward" apartments with hotel-like service. Unlike hotel management companies whose costs scale with revenue, Sonder's rent expense remained high whether tenants occupied rooms or not. This fixed cost model is mismatched with the variable nature of hospitality revenue.

The Marriott Partnership

In August 2024, Sonder announced a licensing deal with Marriott International that provided additional runway. Over 9,000 Sonder units were integrated into Marriott's Bonvoy program while Sonder gained $146 million in additional liquidity. Instead, integration costs mounted while forecasted revenues failed to materialize.² By Q2 2025, Sonder posted an 11% annual revenue decline with net losses of $44.5 million.¹ On Nov. 9, 2025, Marriott terminated the partnership citing "Sonder's default," leaving the company with limited alternatives and insufficient runway for an orderly wind-down.⁶

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