Hotel Contracts for Events

Hotel Contracts for Events: What to Consider

Planning an event can be a daunting task, especially when it comes to negotiating and finalizing hotel contracts. As a professional, I’ve come across many tips and tricks for making these contracts work to your advantage. Here are some things to consider when drafting and signing hotel contracts for events.

1. Room Blocks and Attrition

One of the first things to consider when negotiating a hotel contract is the number of rooms you will need for your event. Most hotels require a room block, which is a minimum number of rooms that must be booked by event attendees in order to receive a discounted rate. Keep in mind that the hotel will also likely include an attrition clause, which means that if you don’t book the minimum number of rooms, you may be on the hook for paying for the unused rooms.

To avoid this, negotiate a lower room block and attrition rate upfront, or consider adding a clause that allows you to release unused rooms a few weeks before the event without penalty.

2. Food and Beverage Minimums

Most hotel contracts for events also include food and beverage minimums, which require you to spend a certain amount on catering. It’s important to read these clauses carefully, as they may be based on a price per person or a minimum total spend. Negotiate these minimums based on your event’s needs and budget, and consider adding a clause that allows you to adjust the minimums based on final headcounts closer to the event.

3. Ancillary Costs

When negotiating hotel contracts for events, it’s important to consider all ancillary costs that may not be listed upfront. This may include fees for internet, AV equipment, parking, or setup and teardown. Ask about these costs upfront and negotiate them to fit within your budget.

4. Liability and Indemnification

Hotel contracts for events typically include a clause on liability and indemnification, which means that you are responsible for any damages or injuries that occur during your event. Make sure to read this clause carefully and negotiate any terms that seem unreasonable. You may also want to consider purchasing event insurance to protect yourself from any unforeseen liabilities.

5. Attractions and Amenities

Finally, consider any attractions or amenities that the hotel may have to offer. Many hotels offer discounted rates for spa services, golf, or other activities that could be a great addition to your event. Negotiate these rates upfront and consider offering them as perks to your attendees.

Conclusion

Negotiating hotel contracts for events can be a complex process, but by keeping these tips in mind, you can ensure that you are getting the best possible deal for your event. Be sure to read all clauses carefully, negotiate any terms that don’t seem reasonable, and consider all costs and amenities when making your final decision. Happy planning!