Sonder Exits Dubai: Consequences and Future Outlook

Sonder's Exit from Dubai: What Happens to Tenants and Property Owners Now?

The global short-term rental market has experienced another shock as accommodation provider Sonder announced on November 10 that it would cease operations immediately and file for bankruptcy protection in the United States, while initiating liquidation procedures in other countries where it operates. The event particularly affected tourists and travelers who found themselves facing eviction overnight — including those in Dubai.

What Does This Mean for Dubai?

Dubai, as one of the most dynamically developing cities in the region, was a key target in Sonder's strategy. The US-based company offered premium, short-term rental apartments in Downtown Dubai, Business Bay, Jumeirah Beach Residence, and Dubai Marina — often promising modern travelers a "design-centric, fully serviced experience."

Local property owners and developers contracted exclusively with Sonder are now seeking new platforms to relist their apartments or are forced to enter into traditional long-term lease agreements. Attempts to book Dubai properties through Sonder have been unsuccessful as the system has essentially shut down.

Tourists on the Street: Evictions and Chaos

Sonder's exit is not only a business issue but has also triggered social tension. On November 12, for instance, a tourist who checked into a Dubai Sonder accommodation two days prior reported desperately being "evicted" overnight. Social media platforms, particularly TikTok and Reddit, filled up with complaints where travelers shared their experiences of loss and Sonder's unreliability.

One of the most frustrating experiences for guests was the lack of support or alternative solutions, receiving only last-minute emails or on-site notices to leave the property immediately. This was particularly problematic for those who booked via third-party platforms, as those reservations were suddenly canceled without guaranteed refunds.

What Led to Sonder's Collapse?

According to the company, one of the main causes of the bankruptcy was technical and financial difficulties encountered during the integration with the Marriott International hotel chain. A deal between Sonder and Marriott aimed to incorporate the short-term rental service provider into the Marriott Bonvoy reservation system. However, technological compatibility issues led to significant delays and increased costs, while generating less revenue than expected from the partnership.

Sonder's management stated in an official statement that "every possible alternative was examined to avoid cessation, but ultimately there was no other way than to halt operations immediately and liquidate assets." They emphasized that over the past decade, they sought to redefine hospitality by prioritizing the guest experience, but circumstances turned against them.

What Does This Mean for the Affected Parties?

Sonder's departure poses challenges on several levels. Firstly, trust in alternative accommodation platforms has been shaken among guests — mainly tourists and business travelers. Secondly, property owners are also forced to make quick decisions. Those who relied solely on Sonder for their short-term rental model now face significant financial losses.

Some involved with third-party bookings are awaiting refunds, while others have left the city with suitcases full of disappointment and dissatisfaction. Meanwhile, property managers and owners have already appeared on other international and local platforms — such as Airbnb, Booking.com, or local Dubai agencies — to minimize revenue loss.

Dubai's Tourism Sector Remains Attractive

Although the Sonder case may undermine trust among some tourists, Dubai remains a prominent destination. The city's accommodation options are diverse: from luxury hotels to private, long-term rental apartments and new-generation co-living solutions. One important lesson for travelers is to always book through platforms that offer customer support and financial protection.

What Can We Expect in the Future?

Sonder's story serves as another warning of how vulnerable service providers in the gig economy — especially in the hospitality sector — are to global financial and technological pressures. In the coming months, more Dubai property owners are likely to seek new partners, and established, long-term players may strengthen their position in the city.

The official statement indicates that Sonder will initiate liquidation processes not only in the United States but also in other countries. International subsidiaries or appointed liquidators will provide further information to stakeholders in the coming weeks.

The case sends a clear message: reliability and transparency are crucial in the tourism and short-term rental sectors. Dubai, in this sense, has been tested, but the city's dynamism and flexibility are expected to help it quickly regain visitor trust — even if a player like Sonder exits the market unexpectedly.

(Source of the article: Based on Sonder's company announcement.)