Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: November 26, 2001

The concessions that have been negotiated as part of the hotel contract are often hard-won. If the language that describes them in the contract is not as precise as possible, some of the group’s anticipated benefits could be less than or markedly different from what was negotiated. The intent of both parties needs to be quite clear. Here are some examples of poorly worded concessions, followed by the revised wording:

Three suites. State what kind of suite, "complimentary" whenever applicable and for how many nights. If the concession is a multiple, state "each."

Revised: Three complimentary two-bedroom suites for up to three nights each.

One upgraded suite. Say "at the group rate" and for how many nights.

Revised: One upgraded suite at the group rate for up to three nights

Five airport runs. Spell out that these are "complimentary," "round-trip," "limousine," and "transfers," as applicable.

Revised: Five complimentary round-trip airport limousine transfers.

Five amenities. Be specific about "complimentary," "welcome," and "VIP."

Revised: Five complimentary welcome VIP amenities.

The contract will often state that the concessions are provided based on a percentage of room block pickup, say 80%. It is important to negotiate and specify exactly what happens if less than 80% of the room block is actualized. One example is this: "If less than 80% of the room block is picked up, the two complimentary two-bedroom suites will each be provided at the group rate." Or: "If less than 80% of the room block is picked up, these concessions will be proportionately reduced."

Using carefully worded and accurate language to state concessions will help avoid confusion on both sides when the meeting takes place.

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)