arriott International has inked a longterm licensing deal with Sonder , a provider of apartment-style accommodations , which will add more than 9,000 rooms to Marriott ’ s portfolio by this yearend and roughly 1,500 rooms to its pipeline .

As part of the agreement , Sonder ’ s open and pipeline properties , which are mostly located in urban markets worldwide , will join the Marriott system under a new collection called Sonder by Marriott Bonvoy . Marriott will receive a royalty fee based on a percentage of Sonder gross rooms .

With the addition of Sonder ’ s 9,000 rooms , Marriott anticipates its full year 2024 net

rooms to grow by 6-6.5 %. The pipeline rooms under Sonder are expected to join Marriott in the next few years .

Beginning later this year , Marriott Bonvoy members will be able to earn and redeem points on their stays at about 200 Sonder by Marriott hotels . In 2025 , Sonder ’ s properties are expected to be fully integrated with Marriott ’ s digital channels , including Marriott . com and the Marriott Bonvoy app . However , Sonder expects that Marriott . com will feature link-offs to Sonder ’ s digital platforms to support shop , book , earn and redeem by Marriott Bonvoy members by the end of this year .

“ Marriott has long believed in providing the right product at the right price point for all

trip purposes and generations of travelers . With the planned addition of Sonder by Marriott Bonvoy , we will be able to provide guests seeking apartment-style urban accommodations with even more options in the Marriott Bonvoy portfolio ,” said Tim Grisius , global officer , M & A , business development and real estate , Marriott International .

The deal has helped Sonder to strengthen its balance sheet as well . The group has enhanced its liquidity profile by around $ 146 million to support its longterm growth and the integration

efforts ( besides its previously announced $ 16 million in financing from Sonder ’ s existing noteholders ).

A consortium of investors has committed to $ 43 million of a newly designated series of convertible preferred equity of Sonder . Sonder ’ s existing noteholders have provided additional liquidity of $ 83 million , which includes $ 4 million in financing funded on August 13 and approximately $ 79 million through a 30-month extension ( through the end of 2026 ) of the paidin-kind feature of the note

82 hotelsmag . com September 2024