Sonder’s 200 Leasehold Interests Up for Sale

The collapse of hospitality operator Sonder is opening a limited-time opportunity for bidders interested in furnished boutique hotels, cottages and apartments across the country.

Gordon Brothers is leading the offering of 190 leasehold interests held by Sonder, the global asset company announced. The interests in the hospitality properties are located in 17 states across the country, including more than a dozen in New York City.

The portfolio is derived from Sonder’s business model, which saw it sign long-term leases with apartment and hotel owners, then turning around and renting out units as short-term rentals.

Interested parties can put in bids for as many or as few leasehold interests as they’d like. But they need to act quickly, as the first round of bids is due by Dec. 30.

“Gordon Brothers has been fully engaged in this process and we are confident that their team will provide valuable assistance to maximize value for the estates,” said the trustee managing Sonder’s wind-down.

Sonder bit the dust a little more than a month ago, announcing plans for an immediate end to operations and the pursuit of Chapter 7 liquidation of its United States business.

The announcement came one day after Sonder’s partnership with Marriott International collapsed; Marriott terminated its licensing agreement with Sonder, alleging the short-term operator was in default on an agreement signed last year.

“We are devastated to reach a point where a liquidation is the only viable path forward,” interim chief executive officer Janice Sears said in a statement at the time.

The company’s market value before the shutdown announcement was $6.79 million, according to LSEG, a far drop from the $2.2 billion valuation at the time of its initial public offering in 2021.

In its final quarterly report, Sonder noted “substantial doubt” about its ability to remain as a going concern. As of the end of June, Sonder counted $1 billion of assets and $1.5 billion in liabilities.

The U.S. Bankruptcy Court approved the sale of Sonder’s assets last week. Winning bidders need to provide proof of funds by Jan. 9. Sales are scheduled to close before the end of January.