(Reuters) -Hotel operator Marriott International on Sunday said its licensing agreement with lodging rentals company Sonder has been terminated due to a default from Sonder.
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.
As a result of the termination, Marriott said Sonder is no longer affiliated with Marriott Bonvoy, adding that Sonder properties are not available for new bookings on Marriott’s channels.
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.
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.
(Reporting by Rhea Rose Abraham in Bengaluru; Editing by Bill Berkrot)