Afrigather Marriott Worldwide, Inc. (NASDAQ: MAR) introduced a long-term licensing settlement with Sonder Holdings Inc. (NASDAQ: SOND, “Sonder”), 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. Beneath 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 below 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 now expects full 12 months 2024 internet rooms progress 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. Beneath the settlement, Marriott will obtain a royalty charge based mostly on a proportion of Sonder gross room revenues.
We’re excited concerning the addition of Sonder’s portfolio to our system, which is able to broaden our portfolio of longer-stay lodging in key markets around the globe. Marriott has lengthy believed in offering the correct product on the proper value level for all journey functions and generations of vacationers. With the deliberate addition of Sonder by Marriott Bonvoy, we can present visitors looking for apartment-style city lodging with much more choices within the Marriott Bonvoy portfolio. Tim Grisius, World Officer, M&A, Enterprise Improvement and Actual Property, Marriott Worldwide
Based in 2014, Sonder at the moment operates apartment-style lodging and small boutique resorts in city markets throughout North America, Europe and the Center East. Interesting to key demographics, together with youthful vacationers, these property 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 and the Marriott Bonvoy app, is predicted in 2025.
