Short-term rental startup Sonder has signed a licensing agreement to sell 9,000+ of its units to Marriott International. As part of the agreement, an additional 1,500 units are expected to be integrated into the Marriott system in the future.

Following the agreement, Sonder has also raised USD 146 million, which includes USD 43 million from an investor consortium and USD 83 million from existing Sonder noteholders. 

The funds were earmarked to strengthen Sonder’s balance sheet to enhance its value maximization strategy alongside its licensing agreement with Marriott.

Post-agreement, Sonder’s properties will be accessible via Marriott's distribution channels, including its websites and loyalty program mobile application under the banner of Sonder by Marriott Bonvoy. The company claims that this decision will increase revenue per available room over time and result in cost savings.

Analyst QuickTake: Sonder has been on shaky grounds as of late, having lost properties to its rivals in March 2024 while also facing the risk of being delisted . Additionally, the company reduced its headcount by 17% in February 2024 , seeking to accrue annualized cost savings of USD 11 million.