Are Resort Fees Negotiable? Unpacking the Complexities of Hotel Fees

Are Resort Fees Legal? Unpacking the Complexities of Hotel Fees in Contracts

In a recent HopSkip x Legalese with the Ladies webinar, Sean Whalin, Co-founder and CEO of HopSkip, moderated a discussion on the latest changes in hotel fees and contracts affecting the events industry in 2024.

The session featured Kelly Bagnall, Partner at Holland & Knight LLP and a leading authority on hospitality law, along with Barbara Dunn, Partner at Barnes & Thornburg LLP, who shared their expertise on how planners can effectively navigate these challenges and negotiate fees within hotel contracts.

Are Resort Fees Legal? Planners often ask: Are resort fees legal? According to Kelly and Barbara, resort, service, and administrative fees are legal. Hotels can charge whatever they want for these fees, and current legislation does not impose limits, whether on a state or federal level.

However, hotels must disclose these fees in their contracts, so it’s crucial for planners to request clear, itemized breakdowns to understand what these fees cover.

Can Resort Fees Be Negotiated? While resort fees are typically non-negotiable, that doesn’t mean they can’t be part of the conversation. Sean emphasized during the session that planners must engage in dialogue with hotels, especially when working with tight budgets.

Barbara encouraged planners to ask for all-in pricing, which includes all mandatory fees upfront. This makes it easier to manage costs and avoid unpleasant surprises later on.

For example, if a hotel insists on increasing service charges, Barbara recommends negotiating a lower base rate to balance the overall budget. She also noted that scrutinizing contract language is essential—planners should watch for clauses that give hotels the right to change fees, as this could impact the total cost of the event.

Real-World Experiences:  Throughout the webinar, participants shared their experiences negotiating fees, with some successfully waiving resort fees entirely.

This variability highlights that while resort fees are generally not up for negotiation, it’s always worth asking. Sean also noted that flexibility in fee negotiations can vary depending on the event's size and scale and the hotel's relationship.

Managing Contracts with Confidence Barbara and Kelly stressed the importance of understanding the finer details of hotel contracts, from fee disclosures to clauses that reserve the right to change prices.

Planners need to stay vigilant, ask the right questions, and push for clarity in their contracts to ensure unexpected fees don’t derail their budgets.

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With the proper knowledge and tools, planners can confidently negotiate contracts and manage their event budgets more effectively.