Marriott International announced that its licensing agreement with Sonder is no longer in effect due to Sonder’s default. As a result, Sonder is no longer affiliated with Marriott Bonvoy, and its properties are not available for new bookings on Marriott’s channels.

Marriott’s immediate priority is supporting guests currently staying at Sonder properties and those with upcoming reservations. Marriott will be contacting guests who booked directly through Marriott channels, including marriott.com, the Marriott Bonvoy App and Marriott’s worldwide reservation centers, to address their reservation and booking needs. Guests who booked through a third-party online travel agency should contact those organizations. Marriott remains committed to minimizing disruption to guests’ travel plans.

Guests with questions about current or future reservations at a Sonder property booked through Marriott channels can contact Marriott customer service.

Sonder, which provides apartment-style accommodations, signed an agreement with Marriott in 2024 that sent its shares skyrocketing. Under the deal, Sonder enhanced its liquidity profile by about $146 million, with over 9,000 units expected to join the Marriott system by the end of 2024.

Marriott, in a separate statement, said that it now expects its full-year net rooms growth to be 4.5%, because of the termination, a dip from last week, when the company said it saw yearly net rooms growth approaching 5%.

Sonder did not immediately reply to a request for comment outside regular business hours, Reuters reports.

The company, which offers refurbished properties for short-term rentals, agreed to go public at a valuation of around $2.2 billion in 2021. It now has market value of around $6.79 million, according to data from LSEG.