Sonder’s sudden implosion this week is spilling over into the New York real estate world.
The Moinian family, among the city’s most prominent landlords, sued the collapsed hospitality firm for at least $10 million in damages and is moving to retake control of two Manhattan properties leased to Sonder that have descended into turmoil since the company’s shutdown, Crain’s reported.
The lawsuit, filed Tuesday in state Supreme Court in Manhattan, claims that guests at the Moinians’ buildings — 2 Washington Street in the Financial District and 37 West 24th Street in NoMad — have either refused to vacate their rooms or been locked out and unable to retrieve their belongings after Sonder shuttered operations Monday afternoon.
The family accuses Sonder of abandoning the sites and leaving them to deal with the fallout as the San Francisco-based company heads toward bankruptcy.
At the center of the Moinians’ claim are two Sonder-run properties totaling about 400 units. Joseph Moinian’s group leased 14 floors at 2 Washington under a 10-year deal signed in 2020 for roughly $1.3 million a month, according to filings, while his brother Morris of Fortuna Realty Group owns the 120-room property at 37 West 24th, formerly the Hotel Henri. Both landlords say they’ve been left with unpaid rent as Sonder unraveled.
Sonder, once touted as an alternative to Airbnb, collapsed after Marriott International terminated a key partnership, citing a default under a 2024 licensing deal. Interim CEO Janice Sears said the firm was “devastated” to liquidate after costly integration delays with Marriott’s systems and a steep revenue slide.
The fallout extends beyond the Moinians. Sonder operated roughly 10 Manhattan locations, including buildings owned by Silverstein Properties, BLDG Management and the Chehebar family, all left grappling with stranded guests and uncertain lease obligations.
For landlords, Sonder’s collapse underscores the risks of the master-lease model that fueled its growth during the short-term rental boom. The company’s Chapter 7 filing could take months, leaving high-profile owners caught in limbo over how — and when — they can reclaim their assets.
Neither the Moinians’ attorney nor a family spokesperson commented to the publication by press time. Sonder did not respond to requests for comment.
— Holden Walter-Warner
Read more
Sonder to file for Chapter 7 bankruptcy, liquidation
Marriott terminates brief partnership with Sonder after “default”
Moinian Group faces foreclosure on Fifth Avenue
