The Sonder fiasco cost Marriott millions.
On a Tuesday earnings call, Marriott’s outgoing finance chief, Leeny Oberg, said Marriott incurred a $23 million loss from terminating its contract with the luxury short-term rental company Sonder in November.
A Tuesday earnings report said the $23 million in charges came from termination expenses and the write-down of Marriott’s licensing agreement with Sonder. Oberg added that it was a one-time expense.
There were no other mentions in the earnings call of any fallout Marriott experienced because of the termination.
In November, Marriott made headlines for giving its guests staying at Sonder properties short notice to vacate. Affected guests that Business Insider spoke to said they scrambled to find alternative accommodations at exorbitant costs, and had their vacations ruined by the experience.
Guests also described Marriott flip-flopping on its refund policy. The hotel chain initially assured guests who had booked Sonder properties through Marriott’s channels that they would get a full refund. A few days later, the guests were instructed to approach their credit card companies for refunds.
Sonder workers described the chaos and confusion of the messy breakup to Business Insider, saying they found out from the news that they would be losing their jobs.
Shortly afterward, Sonder, a onetime Airbnb rival founded in 2014, filed for Chapter 7 liquidation proceedings in a Delaware federal bankruptcy court. Its stock price crashed.
Despite the hit from Sonder’s termination, Marriott reported strong financial results in the latest quarter.
It reported its latest quarter revenue of $6.69 billion, a 4% increase compared to the same period the year before. Its revenue per available room increased 1.9% year on year. It had about 610,000 available rooms as of the end of December, per the Tuesday earnings report.
The company’s stock increased about 8.5% after earnings were announced on Tuesday. It’s up 18% in the past year.
Representatives for Marriott did not respond to a request for comment from Business Insider.
