Sonder’s sudden collapse has left thousands of travelers displaced and sparked legal battles with Marriott, but AirDNA data reveals that occupancy at Sonder properties remained strong before the unraveling. According to AirDNA, 86% of Sonder’s units were occupied as of June 2025, suggesting that demand wasn’t the core issue. Instead, the company’s downfall stemmed from an unsustainable business model built on long-term leases and short-term revenue. The failure underscores the risks of asset-heavy operations in the short-term rental space, even as performance metrics appeared solid. Marriott claims Sonder owes $17.7 million and is now seeking damages in bankruptcy court.

AirDNA data shows 86% occupancy at Sonder units before collapse, spotlighting how flawed business models—not demand—can sink STR operators.

Inside Marriott’s Disastrous Bet on Short-Term Rental Company Sonder

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Inside Marriott’s Disastrous Bet on Short-Term Rental Company Sonder