Marriott Worldwide, Inc. introduced a long-term licensing settlement with Sonder Holdings Inc., which is predicted so as to add over 9,000 rooms to Marriott’s portfolio by year-end and roughly 1,500 rooms to its pipeline. Underneath this settlement, Sonder’s open and pipeline portfolio, which primarily consists of apartment-style lodging in city markets, is predicted to be added to the Marriott system underneath a brand new assortment known 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 progress of 6 to six.5 %. The Sonder pipeline rooms are anticipated to be added to Marriott’s system over the subsequent few years. Underneath the settlement, Marriott will obtain a royalty charge primarily based on a proportion of Sonder gross room revenues.
“We’re excited in regards to the addition of Sonder’s portfolio to our system, which can broaden our portfolio of longer-stay lodging in key markets around the globe,” stated Tim Grisius, world officer, M&A, enterprise growth and actual property, Marriott Worldwide. “Marriott has lengthy believed in offering the fitting product on the proper worth level for all journey functions and generations of vacationers. With the deliberate addition of Sonder by Marriott Bonvoy, we will present company 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 lodges 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 predicted in 2025.
