Sonder’s hotel at 3354 Larimer St. on Nov. 10, 2025. (Thomas Gounley/BusinessDen)
The collapse of hotel operator Sonder means its Denver landlords need to come up with a new plan.
“We’re obviously still adjusting to all this,” said Dan Huml.
Huml’s Denver-based firm Magnetic Capital developed a three-story building in RiNo specifically for Sonder in conjunction with Narrate Cos. The 23-unit building at 3354 Larimer St. was completed in 2023.
Dan Huml
BusinessDen broke the news Monday morning that San Francisco-based Sonder, which is publicly traded, is ceasing operations. The company confirmed that in a news release hours later, saying it expected to liquidate through Chapter 7 bankruptcy.
Huml said midmorning on Monday that he had not heard anything directly from Sonder.
Sonder operates apartment-style hotels that feature kitchens, so its landlords do have one advantage: their building could take on a new life as apartment buildings with seemingly minimal changes.
“It’s a good location. If we have the ability to do that, I think we could lease them up as apartments,” Huml said, noting that Sonder’s lease remains in place for now.
Sonder ceased operations after Maryland-based Marriott International on Sunday terminated a licensing agreement with the company, citing an unspecified default by Sonder. Those staying in Sonder hotels were told Sunday to vacate by Monday morning.
Sonder and Marriott had agreed to the deal in August 2024.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system,” Sonder interim CEO Janice Sears said in a statement Monday.
“These issues persisted and contributed to a substantial and material loss in working capital. We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind down of our operations and liquidation of our assets,” she added.
There were signs of trouble before this weekend. Sonder’s stock price fell quickly after going public in 2022.
Huml said his firm has “had ongoing concerns, and we’ve had discussions with Sonder about the state of their operations.” But he took some comfort before this weekend in Sonder’s claims that his RiNo spot had “been a strong performer for them.”
Sonder had three locations in the LoHi neighborhood, including a 40-unit building at 3258 Tejon St. completed in 2023 by Denver-based Revesco Properties, which still owns it.
Revesco CEO Rhys Duggan said Sonder also said it had strong occupancy at his building but he had already been exploring contingency plans given the company’s struggling financials. It had been paying rent late for a while, he said.
Rhys Duggan
“We’ve had a lot of conversations with them lately,” he said.
Duggan said he might operate the building as traditional apartments or seek to keep it going as an extended-stay concept. The latter would likely involve hiring a third-party, and those parties have already been reaching out.
“As you can imagine, there’s been a lot of people circling around Sonder,” he said.
Duggan said the company’s exit isn’t a major blow.
“It’s not horrible news financially,” he said. “It’s just work.”
Duggan said plenty of travelers want to skip the downtown Hilton and stay somewhere within a neighborhood.
“I think it’s a great concept. Clearly they had some structural problems.”
Here are the owners of Sonder’s three other Denver properties:
The 21-unit building at 3022 Zuni St. in LoHi is owned by Conifer-based Blueline Equity Partners, which purchased it in 2021 for $7.3 million. It was built for Sonder by local developer Mike Mathieson.
The 20-unit building at 3206 Osage St. in LoHi is owned by Thompson 195 Nassau Associates LLC, an entity managed by local real estate broker Barton Thompson, according to 2021 loan documents. The hotel was fashioned out of an existing building by Englewood-based Situs Group, which sold it for $7 million in 2020.
Sonder’s final Denver location, at 2601 Alcott St. in Jefferson Park, is a portion of an apartment building developed by Denver-based Grand Peaks.
Court records show that a judge evicted Sonder from the Alcott Street building as of Nov. 6 after Grand Peaks said Sonder failed to make rent payments. Grand Peaks, which didn’t respond to a request for comment, said in court documents it is owed $281,000.
Sonder’s hotel at 3354 Larimer St. on Nov. 10, 2025. (Thomas Gounley/BusinessDen)
The collapse of hotel operator Sonder means its Denver landlords need to come up with a new plan.
“We’re obviously still adjusting to all this,” said Dan Huml.
Huml’s Denver-based firm Magnetic Capital developed a three-story building in RiNo specifically for Sonder in conjunction with Narrate Cos. The 23-unit building at 3354 Larimer St. was completed in 2023.
Dan Huml
BusinessDen broke the news Monday morning that San Francisco-based Sonder, which is publicly traded, is ceasing operations. The company confirmed that in a news release hours later, saying it expected to liquidate through Chapter 7 bankruptcy.
Huml said midmorning on Monday that he had not heard anything directly from Sonder.
Sonder operates apartment-style hotels that feature kitchens, so its landlords do have one advantage: their building could take on a new life as apartment buildings with seemingly minimal changes.
“It’s a good location. If we have the ability to do that, I think we could lease them up as apartments,” Huml said, noting that Sonder’s lease remains in place for now.
Sonder ceased operations after Maryland-based Marriott International on Sunday terminated a licensing agreement with the company, citing an unspecified default by Sonder. Those staying in Sonder hotels were told Sunday to vacate by Monday morning.
Sonder and Marriott had agreed to the deal in August 2024.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system,” Sonder interim CEO Janice Sears said in a statement Monday.
“These issues persisted and contributed to a substantial and material loss in working capital. We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind down of our operations and liquidation of our assets,” she added.
There were signs of trouble before this weekend. Sonder’s stock price fell quickly after going public in 2022.
Huml said his firm has “had ongoing concerns, and we’ve had discussions with Sonder about the state of their operations.” But he took some comfort before this weekend in Sonder’s claims that his RiNo spot had “been a strong performer for them.”
Sonder had three locations in the LoHi neighborhood, including a 40-unit building at 3258 Tejon St. completed in 2023 by Denver-based Revesco Properties, which still owns it.
Revesco CEO Rhys Duggan said Sonder also said it had strong occupancy at his building but he had already been exploring contingency plans given the company’s struggling financials. It had been paying rent late for a while, he said.
Rhys Duggan
“We’ve had a lot of conversations with them lately,” he said.
Duggan said he might operate the building as traditional apartments or seek to keep it going as an extended-stay concept. The latter would likely involve hiring a third-party, and those parties have already been reaching out.
“As you can imagine, there’s been a lot of people circling around Sonder,” he said.
Duggan said the company’s exit isn’t a major blow.
“It’s not horrible news financially,” he said. “It’s just work.”
Duggan said plenty of travelers want to skip the downtown Hilton and stay somewhere within a neighborhood.
“I think it’s a great concept. Clearly they had some structural problems.”
Here are the owners of Sonder’s three other Denver properties:
The 21-unit building at 3022 Zuni St. in LoHi is owned by Conifer-based Blueline Equity Partners, which purchased it in 2021 for $7.3 million. It was built for Sonder by local developer Mike Mathieson.
The 20-unit building at 3206 Osage St. in LoHi is owned by Thompson 195 Nassau Associates LLC, an entity managed by local real estate broker Barton Thompson, according to 2021 loan documents. The hotel was fashioned out of an existing building by Englewood-based Situs Group, which sold it for $7 million in 2020.
Sonder’s final Denver location, at 2601 Alcott St. in Jefferson Park, is a portion of an apartment building developed by Denver-based Grand Peaks.
Court records show that a judge evicted Sonder from the Alcott Street building as of Nov. 6 after Grand Peaks said Sonder failed to make rent payments. Grand Peaks, which didn’t respond to a request for comment, said in court documents it is owed $281,000.
