Dive Brief:
- Sonder co-founder Francis Davidson stepped down from his role as CEO of the company, the accommodations provider announced Wednesday. Davidson will also give up his position as a member of the company’s board of directors.
- Sonder Chairperson of the Board Janice Sears is now interim CEO. The company’s board intends to start its search for a permanent CEO immediately, according to Sonder.
- Over the course of his tenure, Davidson grew Sonder into a hospitality brand serving millions of guests across more than 40 markets in nine countries, but the company also encountered legal and operational challenges. The completion of the company’s integration into Marriott International makes now the right time for a leadership transition, according to Sonder.
Dive Insight:
While serving as interim CEO, Sears will continue to hold her role as chairperson of Sonder’s board, which “is focused on identifying an outstanding executive” to be Sonder’s next CEO and “capitalize on the positive trends we are seeing across the business,” Sears said in a statement.
Sears has served on Sonder’s board since 2021, and became chairperson earlier this year. Previously, Sears held a variety of roles over 20 years at Bank of America Securities, and concurrently served as the San Francisco market president for Bank of America.
Sears said that Davidson’s “entrepreneurial spirit and visionary leadership have made Sonder into the global company and recognizable brand it is today.”
Sonder entered into a strategic licensing agreement with Marriott last August that added some 9,000 of its rooms to Marriott’s portfolio. Experts told Hotel Dive last year that the deal could offer relief to Sonder stakeholders after the company’s stock price fell in March 2024 in the wake of “accounting errors” identified in its 2022 and 2023 financial statements.
The company also was the subject of a class action lawsuit filed on behalf of investors in June 2024.
Since the partnership with Marriott was announced, Sonder has named Michael Hughes CFO to “significantly strengthen” the company’s balance sheet, as well as planned layoffs and cost-cutting measures.
Sonder did not immediately respond to a Hotel Dive request for further comment.
