Marriott Worldwide, Inc. introduced a long-term licensing settlement with Sonder Holdings Inc., which is anticipated so as to add over 9,000 rooms to Marriott’s portfolio by year-end and roughly 1,500 rooms to its pipeline. Below this settlement, Sonder’s open and pipeline portfolio, which primarily consists of apartment-style lodging in city markets, is anticipated to be added to the Marriott system beneath a brand new assortment referred to as “Sonder by Marriott Bonvoy.”
With over 9,000 rooms anticipated to be added to its portfolio later this 12 months, Marriott expects full-year 2024 internet rooms development of 6 to six.5 p.c. The Sonder pipeline rooms are anticipated to be added to Marriott’s system over the subsequent few years. Below the settlement, Marriott will obtain a royalty charge based mostly on a share of Sonder gross room revenues.
“We’re excited concerning the addition of Sonder’s portfolio to our system, which can develop our portfolio of longer-stay lodging in key markets world wide,” mentioned Tim Grisius, international officer, M&A, enterprise improvement and actual property, Marriott Worldwide. “Marriott has lengthy believed in offering the fitting product on the proper value level for all journey functions and generations of vacationers. With the deliberate addition of Sonder by Marriott Bonvoy, we will present friends searching for apartment-style city lodging with much more choices within the Marriott Bonvoy portfolio.”
Based in 2014, Sonder at present operates apartment-style lodging and small boutique motels in city markets throughout North America, Europe, and the Center East. Interesting to key demographics, together with youthful vacationers, these belongings leverage a digital-first working mannequin and cater to longer stays.
Starting later this 12 months, Marriott Bonvoy members are anticipated to have the ability to earn and redeem factors on stays at roughly 200 Sonder by Marriott Bonvoy properties. Full integration of Sonder properties with Marriott’s digital channels, together with Marriott’.com’s web site and the Marriott Bonvoy app, is anticipated in 2025.
