Sonder (company)

Sonder Holdings Inc.

Company type	Public
Industry	Hospitality, Vacation rental services
Founded	1 January 2014 (2014-01-01) in Montreal, Quebec, Canada
Defunct	November 13, 2025 (2025-11-13)
Fate	Filed for Chapter 7 bankruptcy liquidation
Headquarters	San Francisco , United States
Area served	North America, Europe, Dubai
Key people	Francis Davidson (co-founder), Lucas Pellan (co-founder), Sanjay Banker (president & CFO), Satyen Pandya (former CTO)
Products	Apartment-style hotels, Short-term rental management
Number of employees	Approx. 1,200 (estimated from layoffs and rehiring in 2020) (2020)

Sonder Holdings Inc. operated as a short-term rental management company, overseeing apartment-style hotels throughout North America, Europe, and Dubai. Established in Montreal in 2014, the company shifted its main office to San Francisco after 2016.

At its peak, Sonder managed upwards of 9,000 rental units across over 40 cities and accommodated more than one million guests. Positioned as a competitor to Airbnb, Sonder leased and directly managed its properties, catering to travelers who preferred more spacious lodging than standard hotel rooms and sought a reliable experience beyond conventional short-term rentals. Guests utilized a mobile application for check-in procedures and customer service inquiries, while cleaning and maintenance services were outsourced and coordinated via the app.

Following substantial financial setbacks during the COVID-19 crisis and an unsuccessful collaboration with Marriott International, Sonder filed for Chapter 7 bankruptcy in November 2025.

History

In 2012, Francis Davidson, then a student at McGill University, began subletting his own apartment and managing additional units for visiting students during summer breaks to generate extra income.

Davidson partnered with Lucas Pellan in 2014 to launch Flatbook, which was later rebranded as Sonder. The startup joined Montreal’s accelerator program FounderFuel.

By 2019, Sonder had broadened its operations into major U.S. cities such as Dallas, Denver, Miami, New York City, and Philadelphia.

In March 2020, amid the COVID-19 pandemic, Sonder reduced its workforce by laying off approximately 400 employees—about one-third of its total staff—but rehired some later that year. By June 2020, the company had secured over $550 million in funding and achieved a valuation of $1.3 billion.

In January 2021, Sonder announced plans to expand in Quebec with intentions to create 700 new jobs over five years. Sanjay Banker was appointed president while continuing as CFO, and Satyen Pandya took on the role of CTO. In April 2021, following a lease agreement signed in 2019, Sonder reopened the Flatiron Hotel located in Manhattan.

Sonder became publicly traded in January 2022 through a merger with a special-purpose acquisition company (SPAC). That same month, it entered into contracts to manage three properties in Washington, D.C. In June 2022, the company reduced its corporate workforce by 21% and frontline staff by 7%, including the departure of its CTO.

In August 2024, Marriott International revealed a long-term licensing deal with Sonder to incorporate more than 10,500 rooms into Marriott’s portfolio and allow Bonvoy points redemption starting late that year. Nevertheless, Marriott ended the agreement on November 9, 2025, due to Sonder’s failure to meet contractual obligations.

On November 10, just one day after Marriott’s termination notice, Sonder abruptly halted all operations and declared its intention to file for Chapter 7 bankruptcy liquidation on November 13, 2025.

Fines imposed by Boston

In December 2019, Boston authorities fined Sonder $11,700 under regulations prohibiting absentee landlords from engaging in short-term rentals. Sonder was responsible for 39 of the city’s total 288 fines issued that year and contested the penalty.

Opposition from Minneapolis residents

Also in 2019, developer Sherman Associates agreed to limit the number of units leased to Sonder in Minneapolis following complaints from neighbors regarding the extensive presence of short-term rental properties.