The world’s largest hotel company continues to think outside the box of its traditional brands.
Marriott International announced on Monday morning a partnership with Sonder Holdings, a platform for short-term rentals of apartment-like accommodations, primarily in major cities. The deal includes more than 10,500 rooms and represents a major boost to Marriott’s overall growth and expansion beyond traditional hotel stays. The new offering will operate under the new brand “Sonder by Marriott Bonvoy.”
More than 9,000 Sonder rooms will be added to the Marriott system later this year, and approximately 1,500 more rooms are in the Sonder development pipeline. Sonder operates condominium resorts and smaller boutique hotels in North America, Europe and the Middle East.
Marriott Bonvoy members will be able to earn and redeem points on stays at around 200 special hotels throughout this year, but full integration into Marriott’s digital platforms will not occur until next year.
It was not disclosed whether specialty properties, which also appear as Airbnb listings for some units, will continue to be listed on other short-term rental booking channels following the Marriott integration.
Sonder joins a growing list of Marriott offerings geared toward longer stays and slightly more upscale than extended-stay brands like Residence Inn and Element. Marriott currently operates brands such as Marriott Executive Apartments, Apartments by Marriott Bonvoy and Homes & Villas by Marriott Bonvoy.
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“Sonder has a digital operating model and is available exclusively in urban markets that we expect to appeal primarily to younger travelers,” a Marriott spokesperson said in a statement to TPG. “This model differentiates it from Marriott’s current extended-stay properties and apartments – such as Apartments by Marriott Bonvoy and Marriott Executive Apartments – but we see it as highly complementary to these other branded offerings.”
Sonder would also be a more city-focused brand compared to Homes & Villas by Marriott Bonvoy. But if you’re wondering why a hotel company like Marriott would want to get into the short-term rental business after the hotel industry fought so hard against companies like Airbnb, there’s an important difference here. Unlike Airbnb, Sonder owns and operates its properties and registers them as hotels. Therefore, it can continue to operate in New York City after the Airbnb ban went into effect last year.
Consider this deal a continuation of the industry’s ongoing trend of favoring partnerships over mergers, according to a Bernstein report released this week. The analysis shows that the Sonder-Marriott partnership is the latest in an ongoing partnership push, like that between Hilton and Small Luxury Hotels of the World or Marriott and MGM Resorts International.
For travelers, this means more opportunities to earn and redeem points in new places, which is always a good thing.
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