The Moinian family, one of the city’s most prominent landlords, has sued the bankrupt hospitality company for at least $10 million in damages and is seeking to regain control of two Manhattan properties leased to Sonder that have been in turmoil since the company closed. reported.
The lawsuit, filed Tuesday in Manhattan State Supreme Court, alleges that guests at the Moinians’ buildings — 2 Washington Street in the Financial District and 37 West 24th Street in NoMad — have refused to leave their rooms or have been locked out and unable to retrieve their belongings after Sonder halted operations Monday afternoon.
The family accuses Sonder of abandoning the locations and leaving them to suffer as the San Francisco-based company faces bankruptcy.
At the center of the Moinians’ claim are two Sonder-managed properties totaling about 400 units. Joseph Moinian’s group leased 14 floors at 2 Washington under a 10-year deal signed in 2020 for about $1.3 million per month, according to the documents, while his brother Morris of Fortuna Realty Group owns the 120-room property at 37 West 24th, formerly Hotel Henri. Both landlords say they were left with unpaid rent when Sonder fell apart.
Sonder, once touted as an alternative to Airbnb, went bankrupt after Marriott International ended a key partnership, citing a default under a 2024 licensing deal. Interim CEO Janice Sears said the company was “devastated” when it went bankrupt following costly integration delays with Marriott’s systems and a steep decline in revenue.
The consequences extend beyond the Moinians. Sonder operated about ten locations in Manhattan, including buildings owned by Silverstein Properties, BLDG Management and the Chehebar family, all of which suffered from stranded guests and uncertain lease obligations.
For landlords, Sonder’s collapse underlines the risks of the master-leasing model that fueled its growth during the short-term rental boom. The company’s Chapter 7 filing could take months, leaving prominent owners in the dark about how — and when — they can reclaim their assets.
Neither the Moinians’ attorney nor a family spokesperson commented on the publication as of press time. Sonder did not respond to requests for comment.
— Holden Walter Warner
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