Sonder Holdings to Shut Down

<p><strong>SAN FRANCISCO<&sol;strong> &&num;8212&semi; Sonder Holdings&comma; operator of premium apartments and boutique hotels&comma; announced that it will wind down operations immediately and expects to initiate a Chapter 7 liquidation of its U&period;S&period; business&period; The Company also intends to initiate insolvency proceedings in the international countries in which it operates&period;<&sol;p>&NewLine;<p>Sonder has faced severe financial constraints arising from&comma; among other things&comma; prolonged challenges in the integration of the Company’s systems and booking arrangements with Marriott International&period; On Sunday&comma; November 9&comma; 2025&comma; Marriott International announced that it terminated its licensing agreement with Sonder&comma; deeming it no longer in effect&period; The Company made comprehensive efforts to evaluate all financing and other strategic alternatives&comma; including a sale of its business and operations&comma; to improve its financial condition&period; As part of those efforts&comma; the Company engaged numerous strategic and financial parties but ultimately was unable to execute a viable going concern transaction for its business and operations or obtain additional liquidity&period; In light of these unsuccessful efforts and the Company’s financial condition&comma; the Board of Directors made the difficult decision to wind-down operations and pursue a court-supervised liquidation of the U&period;S&period; business immediately&period;<&sol;p>&NewLine;<p>Launched in 2014&comma; Sonder properties are found in prime locations in 37 cities&comma; spanning nine countries&comma; and three continents&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;We are devastated to reach a point where a liquidation is the only viable path forward&comma;” said Janice Sears&comma; Interim Chief Executive Officer of Sonder&period; &OpenCurlyDoubleQuote;Unfortunately&comma; our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks&comma; resulting in significant&comma; unanticipated integration costs&comma; as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system&period; These issues persisted and contributed to a substantial and material loss in working capital&period; We explored all viable alternatives to avoid this outcome&comma; but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets&period;”<&sol;p>&NewLine;<p>Ms&period; Sears continued&comma; &OpenCurlyDoubleQuote;The Board and I are deeply grateful to our employees for their longstanding dedication to putting the guest experience at the center of everything we do&period; Due to their passion and effort&comma; Sonder spent the last decade redefining hospitality with remarkable and accessible guest stay experiences&period; On behalf of the entire Sonder team&comma; we express our gratitude to our guests and partners for their business and support over the years&period;”<&sol;p>&NewLine;<p>Additional information regarding the court proceedings and wind-down&comma; including the status of the Company’s operations outside the U&period;S&period;&comma; will be made available by the Chapter 7 Trustee or the Company&&num;8217&semi;s international subsidiaries in due course&period;<&sol;p>&NewLine;