Sonder, an apartment-style hotel operator with multiple locations in Denver, is checking out.
In an email sent Sunday and obtained by BusinessDen, the San Francisco-based company told local staff that it would “be ceasing US operations effective tomorrow, and non-US operations as soon as appropriate and practical.”
The company said it had asked guests to vacate its properties by 9 a.m. local time on Monday.
“Please know that this outcome was a last resort after exhausting every possible option to continue operations,” the company said.
Sonder did not respond to a request for comment on Sunday.
The email did not explain the reason for the decision. But earlier on Sunday, Maryland-based hotel giant Marriott announced that it had terminated a licensing agreement with Sonder that the two parties had entered into in August 2024. The deal allowed Sonder rooms to be booked through Marriott’s website, with guests earning Marriott Bonvoy points on their stays.
Marriott said Sunday that it had terminated the deal due to a default by Sonder, which it did not detail.
Sonder’s website says it operates in more than 40 cities. The company was founded in Canada in 2014 and went public in January 2022 by merging with a special purpose acquisition company, commonly referred to as a SPAC deal. Shares have since lost 99% of their value, closing at 51 cents a share on Friday, before the Marriott announcement.
Sonder began operating in Denver in 2019 in a former hostel in Uptown. The company had four spots locally by the end of the year.
LoHi eventually became a focus. In recent months, Sonder operated at 3022 Zuni St., 3206 Osage St. and 3282 Tejon St. in the neighborhood, as well as 2600 Bryant St. in Jefferson Park and 3354 Larimer St. in RiNo. The company used to operate in a portion of an apartment building by the University of Denver, but reviews suggest that location closed in 2023.
Sonder leases its local buildings, some of which were built specifically for the company. Sonder hotels generally included apartment amenities like kitchens and washers and dryers, while lacking on-site staff.
Sonder’s local presence hasn’t been limited to hotel rooms. In 2018, Sonder leased 30,000 square feet of office space in Thornton that it said would be a customer service hub.
Read more from our partner, BusinessDen.
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