Conference Manual

Section No. 5.6

HOTEL CONTRACT AND NEGOTIATIONS

Negotiation

When you are ready to book your hotel, there is often room for negotiation on sleeping room rates and meeting room charges depending on a variety of factors the time of year, days of the week, the hotel's occupancy rate, the size of your group. How much meeting space you need and the number of food functions. Many times, a hotel will offer a group rate which is less than the "rack" or published rate. They often offer meeting space at no charge if your group books sufficient sleeping rooms and food functions.
If your budget is a consideration but time of year is not, ask your hotel about its "off" or "shoulder" seasons when rates are less than "peak" season. Rates for weekends and holiday periods can often be negotiable if the property isn't a resort or vacation destination.

Many hotels, as an incentive to attract your meeting, provide a complimentary room at the rate of one for every 50 or 100 rooms used. The complimentary room policy depends on the size of a meeting and its value to a hotel.

Contracts

Hotels require the conference to sign a bold contract. More and more meeting planners are submitting a contract of their own for the hotel to sign. A contract protects both your organization and the hotel. It should confirm all agreements you have verbally discussed with the hotel salesperson. Make sure cancellation clauses clearly state any penalties. Be aware of deposit requirements, and add protection for your organization in case of construction, renovation or changes in ownership of the facility. Assume nothing. Have your SIG Staff Liaison read and review the contract before both of you sign it. The key to working effectively with a hotel is communication. Be honest about your expectations. Be specific about what you need. After all, you and the hotel are both in this for the same reason: a successful meeting.

ACM has a standard hotel contract which can be obtained from your SIG Staff Liaison.

ITEMS TO CONSIDER WHILE REVIEWING A HOTEL CONTRACT

1. The contract should be in simple English and legible. Terms like "whereas", "hereafter', and "party of the first part" are unnecessary and confusing.
   
2. Don't feel obliged to sign a form contract sent by a hotel. Form contracts provided by either a hotel or a meeting planner are rarely fair to both sides. Also, your meeting has individual needs, which no standardized form can comer. Change the contract to accommodate the particulars of the meeting.
   
3. The contract must reflect the true condition of meeting. Any services agreed to by the hotel should be included. Among key elements to consider:
   
   • a. Meeting dates. Will group rates apply to early arrivals and late departures?
     
   • b. Cutoff dates for special rates. The contract should also specify what happens if you fail to pick up all the sleeping rooms blocked.
     
   • c. Deposit requirements.
     
   • d. Special security and other unique needs for your meeting. Will the hotel provide extra personnel at its registration desk on your heavy check-in and check-out days?
     
   • e. Meeting space. Spell out dates on which public space will be used. Also, include a clause covering conflicting functions. You don't want a rockband rehearsing next door to your tutorial program.
     
   • f. Room rates. Try to negotiate the lowest room rate for your group.
     
   • g. If you are using suites as complimentary rooms, make sure the contract specifies which suites you are getting and whether each suite counts as more than one room.
     
4. The contract should carry a two-way cancellation clause. Planners who cancel without such a clause may be liable for the whole contract. The legal implications of cancellations without cancellation clauses are unclear and they can take a very long time to resolve. The two-way cancellation clause protects the conference if the hotel chooses to book another piece of business--thereby canncelling the contract.
   
5. Make sure you have an opportunity to verify your room block pickup and otherwise check the performance of your group. If the hotel claims loss because you did not use as many guest rooms as planned, you have the right to examine its records and determine how many rooms were resold.
   
6. Include a warranty stating that the property must meet or exceed all applicable safety codes. Otherwise, you could be held liable in case of mishap. Also, find out if hotel staff is trained to deal with emergencies.
   
7. Include the provision that if the hotel walks any members of your group, it must provide comparable accommodations and transportation back and forth free of charge.
   
8. Have your SIG Staff Liaison review the contract.