Room Growth

Marriott International terminated its licensing agreement with Sonder Holdings due to Sonder’s default, impacting Marriott’s projected 2025 net room growth, now estimated at 4.5%. Marriott reaffirmed its broader financial outlook. Analysts are evaluating the implications for Sonder, which has faced scrutiny regarding its business model in a challenging economic climate. Marriott’s move reflects due diligence and risk management, potentially signaling a cautious approach to partnerships. The company’s diversified portfolio aims to mitigate the impact of this dissolution.