Additional Coverage:
- The Marriott-Sonder debacle continues: Marriott tells booted guests to beg their credit card companies for a refund (businessinsider.com)
Marriott Ditches Refund Promise, Tells Booted Guests to Chase Credit Card Companies
[City, State] – Marriott International is now directing guests who were abruptly evicted from Sonder properties to seek refunds directly from their credit card companies. This marks a significant shift from the hotel giant’s initial promise to process refunds for affected stays.
The saga began on Sunday when Marriott abruptly terminated its licensing agreement with Sonder Holdings, a short-term rental company that filed for Chapter 7 bankruptcy on Monday. Guests staying in Sonder properties booked through Marriott channels were given short notice to vacate, leaving many scrambling for alternative accommodations.
Initially, Marriott assured these displaced guests that full refunds for the remaining portion of their stays would be processed directly. An email sent to guests on Sunday, shared with Business Insider, stated, “A refund for the remaining portion of your stay will be processed on the card on which the advance deposit was processed, and we are working with the credit card processor to get the refund processed as quickly as possible.”
However, by Tuesday, Marriott’s FAQ page for affected customers had changed its tune. It now advises, “contact your credit card issuing bank to initiate a refund request” for Sonder reservations made through Marriott channels.
This sudden change has left many guests feeling frustrated and abandoned. Rick van Wijngaarden, a retired banker who had an $800 reservation at a New York City Sonder property in December, reported that Marriott’s advice was “literally to go fight the charge with the credit card company” after several unsuccessful attempts to obtain a refund.
Craig Murphy, a health insurance broker from Houston, was similarly dismayed. He had booked a Sonder residence in New Orleans for his daughter’s wedding this week and was told by Marriott customer service that he would “automatically receive a refund.” Murphy, who uses a Chase-Marriott credit card, described the new instruction as “yet another example of Marriott avoiding direct responsibility for the mishap.”
Marriott representatives have not yet responded to requests for comment regarding this policy change. Major credit card issuers, including Visa, American Express, Mastercard, and Chase, also have not commented on how they are handling these incoming chargeback requests.
Sonder operates approximately 7,700 apartments across 140 properties globally, and its sudden bankruptcy has left thousands of travelers in limbo.