The 5 Most Common Mistakes Event Pros Make with Hotel Contracts

The information provided in this video does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information in this video may not constitute the most up-to-date legal or other information. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.

Introduction:

HopSkip recently hosted a conversation with top attorneys to uncover the most common contracting mistakes made by both planners and hotels when contracting an event.

In this video, Sean Whalin (Co-founder and CEO of HopSkip) sits down with Barbara Dunn (Partner at Barnes & Thornburg LLP representing groups) and Lisa Sommer Devlin (Devlin Law Firm, P.C. representing hotels) to discuss the most common mistakes we're seeing when contracting hotel events in today's meetings and events landscape.

TL;DR:

The most common mistakes that planners or hotels make when reviewing contracts are:

1. Thinking that combining the hotel contract with the customer's agenda will protect themselves, even though these documents often have conflicting clauses.
2. Not customizing the contract to fit the specific event and its challenges, instead relying on a one-size-fits-all approach.
3. Failing to talk about concerns and issues with the hotel results in standard clauses that don't address specific problems.
4. Neglecting to thoroughly proofread and check for inconsistencies in dates, dollar amounts, and terminology before signing off on behalf of their organization.
5. Not taking enough time to ensure contract accuracy due to busy schedules, despite being crucial for both parties benefit.

This conversation was recorded during HopSkip's recent webinar "Q2'23 Legal Landscape of the Meetings and events industry

What are the most common mistakes you see planners or hotels make when reviewing contracts today?

Video Transcript:

00:18 | Lisa Sommer Devlin

I think the most common mistake on the planner side is thinking that by having your agenda or writer or whatever you want to call it, that.

You are protecting yourself. And I know Barbara and I agree on this: having the hotel contract, having the customer's agenda, sticking them together, and thinking you're protecting yourself.

It is not the way to go. A lot of these agenda have clauses. That completely conflict with the hotel contract. But sometimes they don't, and it's unclear which contract clause will control. You're not negotiating a good deal.

So my biggest recommendation is to stop doing this agenda and instead sit down and negotiate one complete contract.

If you love your cancellation clause, take that out of the hotel contract, put your clause in, and have one complete agreement. The other thing that I see making mistakes most often is, as Barbara said, people not reading through and thinking.

That one clause always fits all, and it's not really true. You have to understand what your event is about, who will be coming, and what the challenges are. I always say when I see some.

Of these clauses, what happened to you last time? And what are you trying to prevent? Because I see customers trying to put in clauses like renovation clauses or competitor clauses that they think address their Issue but really don't solve their problem.

So again, it should be a conversation, not just an exchange of documents. You, as the meeting planner, should be saying to the hotel, here's what I'm worried about. This happened during my last event, and I don't want that to happen again.

And then you can negotiate a clause to keep that from happening, and that protects both sides rather than just sticking in some kind of standard clause that may not really address the issue that you're dealing with. So those are the biggest issues that I'm seeing.

01:37 | Barbara Dunn

I wholeheartedly agree, Lisa, on all fronts. Again, I will just add slow down, proofread check, and double-check, especially if you've been trading redline versions. Do a final check, and do a final comparison.

Again, I don't think there's any intentional or nefarious purpose that terms get changed or don't get changed when they say they would, but it happens. Make sure you're proofreading it. Remember, you're signing off on behalf of the group side.

You're signing off and making your organization responsible for that contract. So it is important to slow down, it is important to proofread, make sure the dates are correct, make sure dollar amounts are correct, and make sure terminology is consistent.

Is attrition going to be based on cumulative or per night? Is it going to say cumulative in one section and nightly in another? We just get into a lot of these inconsistencies. So remember, at the end of the day, we're stewards to our stakeholders for our organization.

03:28 | Lisa Sommer Devlin

I would just add a very simple thing. We're all trying to do things ecologically and not kill trees. But what I always do with the final contract is I always print it out, sit somewhere else away from my desk, and read through it because I find mistakes by reading papers that I miss when I'm looking at a screen.

Conclusion:

Navigating the complexities of contracts between planners and hotels demands diligence, customization, and clear communication. The process isn't just about merging documents together; it requires a deep understanding of the event's specific needs and challenges.

By avoiding a one-size-fits-all approach, carefully proofreading for inconsistencies, and fostering open dialogues with all parties involved, planners and hotels can create contracts that genuinely serve their mutual interests. This discussion has highlighted that negotiating a clear, unified, and tailored contract is more than just a legal formality; it's a strategic collaboration that sets the stage for a successful event.

Whether reading through a digital copy or the tried-and-true method of a printed document, attentiveness to these critical areas is essential for minimizing risk and maximizing understanding for all involved.

Find out why Event Professionals are switching to HopSkip

The information provided in this video does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information in this video may not constitute the most up-to-date legal or other information. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.