3 Key Hotel Contract Clauses You Need to Know

Negotiating a hotel contract for your next meeting and event is a bit like a dance—you’ve got to find the right rhythm where both parties are in sync. While it might seem like an overwhelming all-or-nothing deal for new planners, the truth is you have serious leverage! Being the host hotel for your event is a big win for them too. So, let’s ensure this partnership feels less like a one-sided deal and more like a collaborative relationship.

‍Nail These 3 Hotel Contract Clauses for Your Next Meeting

The Attrition Clause

The attrition clause is essentially your promise to fulfill a specific number of room bookings or meet specific food and beverage (F&B) minimums. If you fall short, you could be responsible for the difference. But don’t worry—we’ve got tips to avoid any surprises and navigate this with confidence.

• Know the Numbers: Understanding the attendee patterns for your meeting is crucial. Most hotels typically require you to fill 80-90% of your contracted room block, so be strategic! It’s also worth noting that many hotels now calculate attrition based on each night rather than an overall stay, so stay on top of these details when forecasting.
• Keep an Eye on F&B Minimums: Attrition isn't just about room blocks – if you miss your food and beverage minimums, you could face similar penalties. Be sure to monitor your attendee counts and travel patterns to avoid any unexpected fees.

How We Help:

• Accurate Room Block Assessment: We analyze your event history and attendee behavior to recommend a realistic room block size. This reduces the risk of over/ under committing, helping you avoid unnecessary penalties.
• Ongoing Monitoring: We continuously track your pickup numbers, allowing us to make necessary adjustments before key deadlines. This proactive approach helps protect you from unexpected costs and ensures you're always in control of your budget.

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‍‍The Cancellation Clause

The cancellation clause is your event’s safety net. It outlines the financial penalties if either party cancels the contract – and trust us, timing is everything.

• Know the Fees: Know the hotel’s fees like the back of your hand. It’s important to understand their standard policies and the cancellation penalty structure.
• Timing is Key: If you have to cancel, think about whether the hotel can recoup its losses by rebooking the space. Lifewise, if the hotel cancels you, do you have enough time to find a new venue without incurring additional expenses? Before you sign on the dotted line, know when you would need to give a cancellation notice so no one is left in the dust.
• Flexible Terms Negotiations: While we aim to avoid attrition, we know it’s not always possible. When it happens, we’ll work hard to negotiate terms that allow you to apply any penalties toward future events rebooked at the same property within a set time frame – think of it like store credit!

We always hope your event goes as planned, but sometimes life has other ideas. Having a well-crafted cancellation clause and a backup plan ensures you’re covered and save you from potential headaches, and the potential hours of lost sleep looking for your new last-minute hotel

Pro Tip: Don’t be afraid to ask for what you need—the worst they can say is no!

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The Force Majeure Clause

‍ Think of a force majeure clause as a “get out of jail free” card for unforeseen circumstances beyond your control – natural disasters, pandemics, alien invasions (hey, you never know). The key is to clearly define what qualifies as an emergency.

• Define Emergencies: Be crystal clear on what constitutes an emergency. What you view as a disaster may not match the hotel’s definition.
• Protect Your Event: Use language like “situations beyond the control of both parties” to cover industry issues that could disrupt your event. This ensures that you’re safeguarded against things outside of your control.
• Negotiate Flexibility: Aim for flexibility in this clause, allowing you to cancel or reschedule without penalties when these situations arise.

How we Help

• No Financial Penalties: In the event of a disaster, the last thing you need is unexpected fees piling up. Ensure that the clause specifies no penalties for cancellations caused by force majeure events. 
• Rebooking Options: We’ll work to ensure you have the option to transfer your booking or receive a credit for a future event if a force majeure situation arises, keeping your event plans intact for another time. 

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Additional Tips on Negotiating Hotel Contracts: Ensure No Important Concessions are Overlooked

• Get everything in writing: If you didn’t write it down, it didn’t happen. It’s important to make sure that everything is written in the contract.
• Avoid noisy hotel renovations: Make sure your contract includes a clause requiring the hotel to notify you of any construction activities and their potential impact on your event space in advance, so your guests don’t wake up to the sound of jackhammers at dawn.
• Implement a “no walk” policy: Negotiate a “no walk” policy to prioritize your guests if the hotel overbooks. If any guests are moved, ensure their rooms still count toward your contracted room block. The hotel should provide comparable accommodation nearby and offer complimentary transportation. This ensures your attendees are the last to be relocated, if at all.

Let us Negotiate for You

Hotel contracts can be a maze of fine print, but with the right guidance, you can navigate them confidently. Nailing down those key clauses—like attrition, cancellation, and force majeure—protects your event, your budget, and your peace of mind.

At Infinix Global Meetings & Events, our corporate meeting planners are masters when it comes to negotiation. With deep industry knowledge, we work tirelessly to safeguard your budget, timeline, and overall event experience. From negotiating flexibility on room blocks and cancellation terms to securing perks like room upgrades or complimentary F&B, we’ve got you covered.  We sweat the small stuff, so you don’t have to!

Ready to leave the contract stress behind and focus on the fun stuff? Contact us today and let’s make your next meeting a smooth success!

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