Marriott enters into long-term licensing agreement with Sonder

Marriott International Inc. has entered into a long-term licensing agreement with Sonder Holdings Inc., which is expected to add more than 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 more than 9,000 rooms expected to be added to its portfolio later this year, Marriott now expects full year 2024 net rooms growth of 6% to 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.
“We are excited about the addition of Sonder’s portfolio to our system, which will expand our portfolio of longer-stay accommodations in key markets around the world,” said Tim Grisius, global officer, M&A, business development and real estate, Marriott International. “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.”
Francis Davidson, cofounder/CEO, Sonder, added, “We’re delighted about our strategic agreement with Marriott. Benefitting from the extensive distribution, loyalty program and sales capabilities of a global hospitality leader will help us to prioritize our core value drivers, including our unique guest experience, while unlocking significant opportunities for increased revenue and cost efficiency. We look forward to welcoming Marriott Bonvoy members to our approximately 200 properties worldwide, creating new opportunities for guests to enjoy Marriott’s award-winning loyalty program. Thank you to all our employees, guests, partners and stakeholders as we launch this exciting new chapter.”
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.
The post Marriott enters into long-term licensing agreement with Sonder appeared first on hotelbusiness.com.
Appeared first on: hotelbusiness.com