Sonder By Marriott Bonvoy: New Apartment-Style Brand

In August 2024, Marriott announced a licensing agreement that will see the world’s largest hotel company add yet another brand. I want to provide an update, as full details have just been revealed regarding how this brand will participate in Marriott Bonvoy.

Marriott & Sonder enter into licensing agreement

Marriott has entered a long-term licensing agreement with Sonder, which primarily offers apartment-style accommodations in urban markets, including in North America, Europe, and the Middle East. These properties are being marketed under a new collection called Sonder by Marriott Bonvoy. Approximately 9,000 rooms are being added to the portfolio, and then there are approximately 1,500 more rooms in the pipeline.

For those not familiar with Sonder, the brand was founded in 2014, and has been growing at a pretty fast pace, with properties in over 40 cities in over 10 countries. Sonder lists many of its properties on Airbnb, and is one of the biggest “hosts” on the platform.

Here’s how Tim Grisius, Marriott’s Global Officer for M&A, Business Development, and Real Estate, described this development back when it was announced:

“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. 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.”

Sonder participation in Marriott Bonvoy

Marriott Bonvoy members are able to earn and redeem points at Sonder properties. What are earning rates like?

• At Sonder Hotels, Bonvoy members earn 10x points per dollar spent on room rate, and one elite night per night stayed
• At Sonder Apartments, Bonvoy members earn 5x points per dollar spent on room rate, and one elite night per night stayed

As far as elite benefits go, Bonvoy Silver members receive the following:

• Ultimate Reservation Guarantee 
• 10% bonus points
• Priority late check-out

Bonvoy Gold elite members incrementally receive the following:

• 25% bonus points
• Welcome gift of 500 bonus points per stay
• 2PM late check-out , subject to availability
• Room upgrades, subject to availability

Bonvoy Platinum elite members incrementally receive the following:

• 50% bonus points
• 4PM late check-out subject to availability, with 2PM check-out guaranteed
• Welcome gift of 1,000 bonus points per stay

 Bonvoy Titanium elite members incrementally receive the following:

• 75% bonus points
• 48-hour guaranteed availability

Bonvoy Ambassador elite members incrementally receive the following:

• Your24 
• Ambassador Service 

Note that we’re still in the “early access” phase of this partnership. For the time being, you’ll need to book directly through Sonder, and just add your Bonvoy number to the reservation prior to completion of a booking. For now, members wishing to redeem Bonvoy points at Sonder properties need to book through Sonder’s call center, which can be reached at 415-849-2740. I wouldn’t expect redemption rates to be great.

However, in the very near future, we should see this brand fully rolled out through Marriott booking channels as well.

My take on the Marriott & Sonder partnership

On balance, I’d say this new collaboration is good news for Marriott Bonvoy members, since it’s now possible to earn and redeem points for Airbnb-style accommodations.

I suppose more options are a good thing, though the brand inflation at Marriott truly is endless. In the home sharing and apartment segment, you also have Homes & Villas by Marriott Bonvoy, Apartments by Marriott Bonvoy, and Marriott Executive Apartments.

Now, I’m not surprised to see Sonder not wanting to give up its own brand, since the company is continuing to operate independently. Speaking of Sonder, why is the company suddenly partnering with Marriott, when its identity has long been based on essentially being an anti-hotel brand?

Well, the company has been a financial disaster. The company had annual losses of over $250 million in 2020, nearly $300 million in 2021, and then in 2022, the company went public. More recently, the company reported that its 2022 and 2023 financial statements “should no longer be relied upon,” and the company hasn’t reported any financial results since Q3 2023.

So, umm, we’ll see how long this collaboration lasts?

Bottom line

Marriott and Sonder have entered into a licensing agreement, whereby Sonder properties are bookable through Marriott channels, and Bonvoy members have opportunities to earn and redeem points.

Sonder offers apartment-style accommodations in major cities in North America, Europe, and the Middle East, and has marketed itself as an alternative to hotels. But now you’ll be able to stay at these properties within the portfolio of a major hotel loyalty program.

What do you make of Sonder by Marriott Bonvoy?