Marriott International has accused hospitality company Sonder of threatening to put thousands of guests in jeopardy unless the hotel giant bankrolled the winddown of the cash-strapped firm.
In an emergency court motion filed late Friday in Sonder’s Chapter 7 bankruptcy case, attorneys for Marriott said that before Sonder announced its bankruptcy plans, the short-term rental firm “attempted to leverage guest safety as a bargaining chip.”
Sonder, lawyers for Marriott allege, threatened that “unless Marriott financed its wind-down, it would shut down hotel systems and leave thousands of guests locked out of their rooms mid-stay, without regard to whether those rooms contained medication, passports, personal effects, or other essentials and without regard to whether those guests would be left with no place to sleep.”
Marriott said in the motion filed in Delaware bankruptcy court that it ended its long-term licensing agreement with Sonder earlier this month after Sonder informed the hotel chain that it was “headed for an imminent free-fall liquidation and was about to abandon thousands of hotel guests across three continents.”
“As a result, Marriott had no choice but to terminate the agreement to facilitate communication with Sonder’s guests, whose safety, security, and welfare would be impacted by Sonder’s sudden liquidation,” Marriott’s attorneys wrote.
Representatives for Sonder did not immediately respond to a request for comment by Business Insider on Monday.
On November 9 — the day before Sonder announced that it would file for bankruptcy protection and immediately wind down its US operations — Marriott had announced the termination of its licensing agreement with the company.
The move sparked chaos and confusion for blindsided guests, and many were forced to leave their accommodations with little warning.
As Business Insider has reported, Marriott emailed guests staying at Sonder properties that day and instructed them to vacate by 11 a.m. on November 10, Business Insider has reported.
“Although Marriott never operated Sonder’s properties and never collected or received payments for stays at those properties—even stays booked on Marriott’s channels prior to termination of the license agreement—Marriott acted to protect the safety, security, and welfare—and, frankly, basic dignity—of thousands of guests abandoned by Sonder,” Marriott’s attorneys said in the court filing.
Sonder, a San Francisco company that operated thousands of short-term rental units, including apartment-style and boutique hotel accommodations around the globe, officially filed for Chapter 7 liquidation proceedings on Friday.
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