Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: August 13, 2003

The concessions that have been negotiated as part of a hotel contract are often hard-won. If the language 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 bargained for. The intent of both parties should be very clear. Negotiations can focus on more important areas if the concessions are pinned down properly. Here are some examples of poorly worded concessions, followed by recommended revised wording:

• Three suites. Missing elements:
  What kind of suite? Complimentary? 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. Missing elements:
  At the group rate? For how many nights?
  Revised: One upgraded suite at the group rate for up to three nights
• Five airport runs. Missing elements:
  Complimentary? Round-trip? Type of vehicle? "Transfers" is more appropriate than "runs"
  Revised: Five complimentary round-trip airport limousine transfers
• Five amenities. Missing elements:
  Complimentary? When provided? To whom?
  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: "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.)