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Sonder has closed all its locations, including Duane Street Hotel
Sonder, the hotel chain founded in 2014 and that took over the Duane Street Hotel on Church Street in 2021, has ceased to exist. (Thanks to the note from A., who spotted the sign on the door.)
As of November 10, the company completed the “immediate wind-down of operations” and expects to initiate a Chapter 7 liquidation of its U.S. business, according to the press release on its website. The company also intends to initiate insolvency proceedings in the international countries in which it operates.
My first thought: the fate of Modern Bread & Bagel in its base… They were hoping to open in December.
Sonder entered a long-term licensing agreement with Marriott in August 2024, so Sonder could be booked on Marriott’s platform. But it seems that broke down somewhere along the line. Marriott terminated its license with the company on November 9.
From their release: “Sonder has faced severe financial constraints arising from, among other things, prolonged challenges in the integration of the Company’s systems and booking arrangements with Marriott International…The Company made comprehensive efforts to evaluate all financing and other strategic alternatives, including a sale of its business and operations, to improve its financial condition. As part of those efforts, the Company engaged numerous strategic and financial parties but ultimately was unable to execute a viable going concern transaction for its business and operations or obtain additional liquidity.”
“We are devastated to reach a point where a liquidation is the only viable path forward,” said Janice Sears, interim chief executive officer of Sonder. “The Board and I are deeply grateful to our employees for their longstanding dedication to putting the guest experience at the center of everything we do.”
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It should be better for the creditors to keep a rent paying tenant in place to increase the value of the building in a sale, so hopefully the bagel place will still be able to open.
Keeping a bagel shop open isn’t gonna increase the value of the building.
Furthermore, I doubt the bagel place opens now. I’m fairly certain a huge part of their business calculations were the hotel guests and staff – because let’s face it, it’s kind of in a pedestrian dead zone.
Not only is pedestrian traffic less than robust – there are several other bagel locations nearby. I wish Modern well, but the area is a bit saturated with carb shops.
They’re an entirely gluten free bakery so maybe that’s a good enough USP for people to come
Stupidity I tolerate. Ignorance makes me angry but I understand it. But couldn’t there be some sort of filter for utter buffoonery and trolling in this comment section?
Our new mayor is a responsible person and he’s got absolutely no control over releasing violent criminals. This is irresponsible fear mongering. We do have a significant problem with affordable housing for the working people of our city and, btw, as a country that leads the world in incarceration diversion programs for nonviolent offenders who have mental health, substance abuse or who were victims of human trafficking is just fine and part of that is housing. Probably not going to be in a small hotel that’s in a very high priced real estate market that can be repurposed quickly for a commercial use. As for Sonder as a customer who stayed at their Amsterdam location it’s a loss.
Throwing out ridiculously inflammatory comments and hiding behind a letter instead of putting your name out there, that’s bush league. If you’re going to be a racist buffoon, at least let everyone know who you are, so we can avoid you.