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Marriott International, Inc. has announced a significant expansion of its portfolio through a long-term licensing agreement with Sonder Holdings Inc., a move that is set to add over 9,000 rooms to Marriott’s global portfolio by the end of the year.
The agreement, which introduces the new collection “Sonder by Marriott Bonvoy,” is anticipated to strengthen Marriott’s presence in the growing market for apartment-style accommodations.
This strategic partnership is expected to boost Marriott’s 2024 net rooms growth to between 6 and 6.5 per cent, with approximately 1,500 rooms being added to the company’s pipeline. The Sonder rooms, which primarily consist of apartment-style units located in urban markets across North America, Europe, and the Middle East, will be integrated into the Marriott system over the next few years. Marriott will also benefit from a royalty fee based on a percentage of Sonder’s 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 travellers. 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, which was founded in 2014, operates a variety of apartment-style accommodations and boutique hotels in urban markets, appealing particularly to younger travellers. The company’s digital-first operating model and focus on longer stays have positioned it as a key player in the evolving hospitality landscape.
Starting later this year, Marriott Bonvoy members will be able to earn and redeem points 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 to be completed by 2025.
This partnership represents a significant step for Marriott as it continues to diversify its offerings to meet the changing needs of global travellers. By incorporating Sonder’s unique properties into its portfolio, Marriott is poised to capture a broader segment of the market, particularly those seeking the flexibility and convenience of apartment-style accommodations in urban settings.
For the Canadian hotel industry, this move highlights the growing trend towards longer stays and the increasing demand for more diverse accommodation options, particularly in urban centres where younger, tech-savvy travellers are looking for unique, comfortable, and flexible lodging solutions. Marriott’s alignment with Sonder underscores the importance of adapting to these shifts in traveller preferences and the ongoing evolution of the hospitality sector.
W Calgary, JW Marriott and Autograph Collection hotel to anchor landmark $1.47B development in Culture + Entertainment District
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