Marriott Updates Financial Outlook After Sonder Deal Ends

BETHESDA, Md. – Marriott International Inc. (MAR) has announced the termination of its licensing agreement with Sonder Holdings Inc. (SOND) due to Sonder’s default, the hotel giant said in a statement released November 9, 2025.

According to Marriott, the removal of Sonder’s rooms from their booking systems means that net rooms growth for the fiscal year 2025 is now projected to be approximately 4.5%. While the Sonder deal altered room growth projections, Marriott reaffirmed the rest of its previously stated financial outlook, delivered in a briefing on November 4, 2025.

Analysts are closely watching the implications of this development. Sonder, a tech-driven hospitality company, has been facing increased scrutiny regarding its business model amid a tightening economic environment. Its reliance on long-term leases and fluctuating demand has presented challenges in maintaining profitability. The termination of the Marriott partnership could further exacerbate these concerns, potentially impacting Sonder’s future growth trajectory and overall market valuation.

For Marriott, the adjustment in room growth projections, while notable, appears to be manageable. The company’s diversified portfolio and strong brand recognition provide a buffer against the impact of this specific partnership dissolution. This move could signal a more cautious approach by Marriott in its selection of partners, prioritizing financial stability and operational alignment within its extensive network.

The luxury hospitality market is currently navigating a complex landscape, balancing increasing demand with economic uncertainties and evolving consumer preferences. Marriott’s decision to end its agreement with Sonder underscores the importance of robust due diligence and risk management in navigating these challenges. The move may also reflect a broader trend within the industry towards consolidation and a focus on core competencies.

Marriott International, based in Bethesda, Maryland, boasts a portfolio of over 9,700 properties across more than 30 leading brands in 143 countries and territories as of September 30, 2025. The company operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties globally. Its travel program, Marriott Bonvoy^®, remains a key element of its customer engagement strategy. More information is available at www.marriott.com and news updates can be found at www.marriottnewscenter.com. You can also connect with Marriott International on Facebook and @MarriottIntl on X and Instagram.

Forward-Looking Statements

This announcement contains forward-looking statements as defined by U.S. federal securities laws. These statements relate to future events, expectations, and financial estimates, and are subject to risks and uncertainties, including those detailed in Marriott’s filings with the Securities and Exchange Commission, such as their most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Actual results may differ materially from projected results due to these risks and uncertainties. Marriott undertakes no obligation to update or revise any forward-looking statement.