CONTRACTS CORNER: Privacy of Hotel Guest List, Revisited

Source: Robin Roth, Senior Contracts Editor
E-Specs: November 8, 2005

Recent news stories about the theft of personal data have once again brought the issue of the privacy of a hotel's guest list to the forefront of meeting planners' concerns. Charges of identity theft were brought this summer in a case where a hotel went out of business and left behind boxes of personal records that included several years' worth of credit card receipts. It is alleged that intruders used the records to steal certain victims' identities. Cases like this send shivers of concern through the meetings industry about a hotel's duty to protect the privacy of its guests. How far does that duty go and does that duty give hotels a valid reason to deny meeting planners access to the guest list for the purpose of auditing a group's room pickup?

Data privacy is a hot topic but care must be taken not to over generalize. The issue of a hotel sharing its guest list with a meeting planner is not the same as the issue of keeping guests' financial data out of the hands of thieves. Both may be accomplished within the bounds of the hotel's duty to protect privacy as long as the necessary precautions are taken. State laws provide the legal framework for hotels, and each hotel's privacy policy sets an individual standard. These policies are available on hotel web sites and a sampling of policies for the major chains supports the mainstream opinion of meeting planners that the guest list may be divulged in order to conduct legitimate business.

Hotels naturally protect the privacy of guests' personal business because that is what guests expect and it is the best way to do business. If a hotel divulged information without good cause and a guest suffered physical injury or unauthorized credit card purchases, for example, the hotel could be judged negligent and held liable. But also in the course of doing legitimate business, guest information is automatically released when a caller asks for a person by name and is connected to the room, verifying that the person is registered there.

The most important precaution that can be taken to ensure that an audit of the hotel guest list can take place without complications is to spell out the terms clearly in the contract. If push came to shove and the matter of attrition charges went to court, the hotel would have to produce the guest list anyway, but well drafted contract language can prevent challenges. Assurances of confidentiality should be included in these terms.

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