Marriott International has officially terminated its licensing agreement with Sonder Holdings, the San Francisco-based aparthotel brand, citing a default by Sonder.

The move ends Sonder’s affiliation with the Marriott Bonvoy loyalty program, and its properties have been removed from Marriott’s booking channels, including marriott.com, the Bonvoy app, and global reservations centers.

In a statement issued over the weekend, Marriott said its “immediate priority” is to support guests currently staying at Sonder properties and those with upcoming reservations. The company also confirmed that guests booked through Marriott channels will be contacted directly to assist with their travel arrangements.

“Marriott remains committed to minimizing disruption to guests’ travel plans,” the company said, following reports that guests at several Sonder properties were told to check out immediately due to operational uncertainty.

Founded in 2014 in Montreal by Francis Davidson, Lucas Pellan, and Martin Picard, Sonder grew rapidly by offering apartment-style accommodations with hotel-like service, operating in over 40 cities worldwide including London, Dubai, New York City, Los Angeles, and Montreal.

The brand entered a long-term strategic licensing deal with Marriott in 2023, bringing 9,000 Sonder units under the Bonvoy umbrella. The termination of that agreement marks a sharp reversal for the company, which has faced mounting financial pressure in recent months amid a tightening short-term rental market.

As Marriott moves to reassure affected guests, the future of Sonder’s operations and partnerships remains uncertain.