Sonder, the WeWork of apartments, may be bankrupt, but the short-term rental business is healthy

After Sonder’s sudden bankruptcy in November that left some guests in the lurch, the ghosts of the real estate tech bubble of the late 2010s reappeared. How the industry that remains aims to avoid the fate of those high-profile flops.

On November 14, hotel and short-term apartment rental chain Sonder Holdings filed for bankruptcy, just days after suddenly announcing it would be “winding down operations immediately,” abruptly kicking guests to the curb and sending employees scrambling for answers. The company had faced major, unforeseen costs from a deal signed in August 2024 to integrate reservation systems with Marriott International and promote Sonder listings through the hotel giant, according to a statement issued four days earlier.