Skift Take
Sonder gets new marketing and distribution power through the licensing deal. While a positive, this isn't a panacea for Sonder's fundamental problems.
The fine print of the Marriott-Sonder licensing deal announced Monday spells out the basics of certain exclusivity protections, as well as Sonder royalty fees, and other terms such as renewal options and termination fees.
For example, during the first two years, Marriott agreed not to enter into a "platform transaction with certain specified Sonder competitors, subject to certain exclusions." The parties did not publicly name those Sonder rivals.
Marriott did not take any equity position in Sonder.
During the span of the 20-year deal — which can be renewed for two 5-year terms — when Sonder opens a new property, it must first offer it to Marriott