Marriott announces licensing agreement with Sonder Holdings

Marriott International (MAR) announced a long-term licensing agreement with Sonder Holdings (SOND), which is expected to add over 9,000 rooms to Marriott’s portfolio by year-end and approximately 1,500 rooms to its pipeline. Under this agreement, Sonder’s open and pipeline portfolio, which primarily consists of apartment-style accommodations in urban markets, is expected to be added to the Marriott system under a new collection called “Sonder by Marriott Bonvoy.” With over 9,000 rooms expected to be added to its portfolio later this year, Marriott now expects FY24 net rooms growth of 6%-6.5%. The Sonder pipeline rooms are anticipated to be added to Marriott’s system over the next few years. Under the agreement, Marriott will receive a royalty fee based on a percentage of Sonder gross room revenues. Beginning later this year, Marriott Bonvoy members are expected to be able to earn and redeem points on stays 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 in 2025.