Marriott Expands with Sonder Partnership, Adding 10,500+ Rooms to Portfolio

Marriott International has announced a significant expansion through a long-term licensing agreement with Sonder Holdings, a move that is expected to add over 10,500 rooms to its portfolio. This collaboration brings a unique collection of apartment-style accommodations, known as “Sonder by Marriott Bonvoy,” into Marriott’s offerings. Approximately 9,000 rooms are anticipated to be integrated by the end of this year, with an additional 1,500 rooms in the development pipeline.

Sonder, founded in 2014, operates a range of modern, boutique-style apartments and hotels across key urban markets in North America, Europe, and the Middle East. Its digital-first operating model focuses on longer stays, appealing particularly to younger, tech-savvy travelers seeking flexible and convenient accommodations. With this partnership, Marriott aims to bolster its presence in the urban apartment rental space, addressing the growing demand for extended-stay options.

The agreement aligns with Marriott’s strategy of broadening its appeal by offering diverse accommodation styles and price points. Tim Grisius, Global Officer for M&A, Business Development, and Real Estate at Marriott, emphasized the value of this collaboration: “Sonder’s portfolio will enhance our offering of apartment-style stays, especially in markets where demand for longer-term accommodation is high.”

In addition to the room count expansion, Marriott Bonvoy members will benefit from this partnership by being able to earn and redeem points at around 200 Sonder properties by the end of the year. Full integration with Marriott’s digital platforms, including Marriott.com and the Bonvoy app, is expected by 2025. This strategic move is projected to drive Marriott’s overall net room growth for 2024 to between 6% and 6.5%, further solidifying its dominance in the global hospitality market.

The agreement also includes a royalty fee structure, with Marriott earning a percentage of Sonder’s gross room revenues. This not only enhances Marriott’s financial position but also positions the company to cater to an expanding market of travelers looking for flexible, apartment-style accommodations in major urban destinations.

By combining Marriott’s robust loyalty program and extensive distribution network with Sonder’s innovative approach to hospitality, this partnership is poised to meet the evolving needs of travelers worldwide.