Sonder’s abrupt shutdown earlier this week has led to legal action from the Moinian family, a prominent landlord group in New York City. The family filed a lawsuit against the now-defunct hospitality company for at least $10 million in damages and is seeking to regain control of two Manhattan properties that have experienced significant disruption since Sonder ceased operations.
According to court documents, guests at the buildings located at 2 Washington Street in the Financial District and 37 West 24th Street in NoMad have either refused to leave their rooms or have been locked out without access to their belongings following Sonder’s closure on Monday afternoon. The lawsuit alleges that Sonder abandoned these sites, leaving the landlords responsible for resolving the situation as the San Francisco-based company moves toward bankruptcy.
The two properties involved include about 400 units. Joseph Moinian’s group had leased 14 floors at 2 Washington under a ten-year agreement signed in 2020, with monthly rent reportedly around $1.3 million. Morris Moinian of Fortuna Realty Group owns the other property, which is a 120-room hotel formerly known as Hotel Henri. Both parties claim they are owed unpaid rent after Sonder’s collapse.
Sonder’s downfall followed Marriott International’s decision to terminate a key partnership due to an alleged default under a licensing agreement made in 2024. Interim CEO Janice Sears said, “the firm was ‘devastated’ to liquidate after costly integration delays with Marriott’s systems and a steep revenue slide.”
Other landlords across Manhattan are also affected by Sonder’s closure. The company operated approximately ten locations in the city, including properties owned by Silverstein Properties, BLDG Management, and the Chehebar family. These owners are dealing with stranded guests and uncertain lease situations.
The case highlights risks associated with master-lease models popular during recent years’ short-term rental boom. With Sonder expected to enter Chapter 7 bankruptcy proceedings, it may take months before landlords can fully reclaim their assets.
Representatives for both the Moinian family and Sonder did not provide comments by press time.
