Montreal-based hospitality company Sonder Holdings Inc. has filed for bankruptcy protection, triggering immediate evictions of guests from their apartment-hotels across the city. The sudden announcement came on November 12, 2025, leaving hundreds of travelers scrambling to find alternative accommodations with little notice.
Bankruptcy Filing and Immediate Consequences
The corporate bankruptcy filing represents a dramatic fall for the once-promising hospitality startup that had positioned itself as a premium alternative to traditional hotels. Sonder specialized in converting apartments into short-term rental properties with hotel-like amenities, operating numerous locations throughout Montreal including the prominent Sonder Apollon property.
Guests received abrupt notifications that they were being "evicted" from their booked accommodations, with many given less than 24 hours to vacate their rooms. The timing couldn't be worse for travelers who had planned and paid for their stays in advance, often for extended periods.
Impact on Montreal Travelers
The bankruptcy has created chaos for visitors to Montreal, particularly those who relied on Sonder's extended-stay model for business travel, relocation, or longer vacations. Many guests reported arriving at properties only to find themselves locked out or being turned away at check-in.
Travel industry experts note this development highlights the risks associated with newer, venture-backed hospitality models that may lack the financial stability of established hotel chains. Consumers who paid in advance for their stays now face the complicated process of seeking refunds through bankruptcy proceedings.
Broader Implications for Hospitality Industry
Sonder's collapse raises questions about the viability of the apartment-hotel hybrid model in a post-pandemic travel landscape. The company had expanded rapidly across multiple Canadian cities and international markets before financial pressures mounted.
The bankruptcy filing comes amid ongoing challenges in the commercial real estate sector, particularly for properties converted to short-term rentals. Industry analysts suggest this could signal a broader correction in the alternative accommodation market as companies face rising operational costs and changing travel patterns.
Montreal tourism officials are working to assist affected travelers, though the sudden nature of the evictions has overwhelmed local accommodation resources. The situation serves as a cautionary tale for travelers considering alternative lodging options during peak travel seasons.
