Marriott International has announced a long-term licensing agreement with Sonder Holdings Inc, which is expected to add over 9,000 rooms to Marriott’s portfolio by year-end and approximately 1,500 rooms to its pipeline.
Under this agreement, Sonder’s open and pipeline portfolio, which primarily consists of apartment-style accommodations in urban markets, is expected to be added to the Marriott system under a new collection called “Sonder by Marriott Bonvoy.”
With over 9,000 rooms expected to be added to its portfolio later this year, Marriott now expects full year 2024 net rooms growth of 6 to 6.5%. The Sonder pipeline rooms are anticipated to be added to Marriott’s system over the next few years. Under the agreement, Marriott will receive a royalty fee based on a percentage of Sonder gross room revenues.
“We are excited about the addition of Sonder’s portfolio to our system, which will expand our portfolio of longer-stay accommodations in key markets around the world,” said Tim Grisius, Global Officer, M&A, Business Development and Real Estate, Marriott International.
“Marriott has long believed in providing the right product at the right price point for all trip purposes and generations of travelers. With the planned addition of Sonder by Marriott Bonvoy, we will be able to provide guests seeking apartment-style urban accommodations with even more options in the Marriott Bonvoy portfolio.”
Founded in 2014, Sonder currently operates apartment-style accommodations and small boutique hotels in urban markets across North America, Europe and the Middle East. Appealing to key demographics, including younger travelers, these assets leverage a digital-first operating model and cater to longer stays.
Beginning later this year, Marriott Bonvoy members will be able to earn and redeem points on stays at approximately 200 Sonder by Marriott Bonvoy properties. Full integration of Sonder properties with Marriott’s digital channels, including Marriott.com and the Marriott Bonvoy app, is expected in 2025.
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