1. Are hotels liable to keep confidential the names of other groups? I send them a list of our competitors, but if I ask outright who else is in house, many times they will not share that info.
Unless the hotel has agreed to a confidentiality provision with other groups, there is nothing restricting the hotel from providing the group with the information as to other groups in-house over the meeting dates. My recommendation is to include language in the hotel contract that requires the hotel to provide the group with a list of groups in-house over the contracted dates unless it is restricted from the group’s contract to do so.
2. I have found on numerous occasions extra fees for set-up and tear-down labor costs. These fees are NOT outlined in the contract or BEOs. I find out about them at final bill. Remedy?
My recommendation is to include language in the hotel contract prohibiting the hotel from imposing any fees other than any listed in the contract. For example, “Hotel shall not impose any fees or surcharges on Group which are not specified in this Agreement.”
3. Do housing pirates tend to only look only at international business?
No, housing pirates prey on all types of business, but international groups often are victims as they tend to book rooms through travel agencies or without the knowledge or understanding of the group’s authorized housing company. It is important for the group to educate its members and exhibitors as to the tactics of these pirates even if the group has yet to be targeted.
4. Do you have a list of the 32 states that hold the group responsible for over serving alcohol?
The list of states which recognize social host liability is included on the Mothers Against Drunk Driving website. It is important to understand that those states that do not recognize social host liability may be just one difficult case away from doing so. As such, it is important to include indemnification provisions in contracts for the sale or service of alcohol and to confirm that the group has insurance coverage for liquor claims.
5. Does an event called a "Pub Crawl" make you more likely to be liable for an incident during that event?
Likely the name of the event will not matter if a liquor liability claim arises. The key with any event at which alcohol is served is to protect the organization and the attendees through contracts, insurance and practical risk management measures. In the contract with the bars, the group should include an indemnification provision in event the bar over serves someone. The group should also confirm that it has liquor claims coverage in its liability insurance. Finally, the group should take all steps to ensure that attendees are safe and that no one will be driving after the outing. PageBreak
6. Does the hotel have to give me credit for rooms booked outside of the block (Orbitz, etc.)?
From a legal standpoint, unless the contract states that the hotel is required to give the group credit for rooms booked outside the block, the hotel is not required to do so. From a business standpoint, most hotels will give groups credit for such rooms. The best course of action is to include language in the hotel contract which states that the hotel will credit the group for all rooms booked by its attendees regardless of rate paid or method of reservation.
7. For resell of guest rooms, can you give an example of what to include into a contract in a way that is favorable?
Here’s a sample provision:
“The Hotel shall attempt to mitigate its losses. If the Hotel is able to replace this canceled business, the collected amount will be reimbursed to Group, without interest. If only a percentage of the lost revenue is recovered, the difference between this figure and the fee will be reimbursed to Group. In determining whether or not the lost revenue is recouped, all room nights sold over the Event dates after notice of cancellation is received shall be credited to Group.”
8. In regards to force majeure as a financial institution, is it unrealistic to insert "closure of the NYSE for more than 24 hours not related to Exchange holiday" into the force majeure clause?
Yes, this is an item that the group can include on its “grocery list” of calamities in the force majeure provision. The case law on force majeure makes clear that the parties are free to negotiate whatever contingencies they would like in the provision.
9. How do you feel about a "no-walk" clause?
My preference is to include a walk clause rather than simply saying the hotel will not walk the group. You can certainly state that the group’s attendees would be the last walked and that the group would be notified in advance so as to determine who would be walked. It is important to include language regarding the hotel’s obligation to provide alternate accommodations, transportation, etc. Ideally if the group, through its language, makes it unattractive for the hotel to walk its attendees, it should make it less likely for the hotel to do so.
10. I am being asked from our current hotel to consider looking at our space and changing rooms for the hotel to accommodate another group. It's difficult to fully review since they are in another state and the space we viewed on-site was looked at specifically for the event outlined within the original contract. How do you think we should handle this?
If you are willing to entertain this change, it could work to your group’s benefit. Since you will first need to see the alternate space, the hotel would need to agree to pay your expenses for a return site visit. If the space is acceptable, the group can seek additional items such as enhanced concessions or a reduced room block. PageBreak
11. I am curious as to what your view is on electronic signatures.
Under the federal Digital Signatures Act passed in the late 1990s, electronic signatures are as valid as pen to paper signatures with two exceptions: contracts to purchase insurance and loan contracts. As such, a hotel contract can be signed electronically. I don’t often see groups and hotels use electronic signatures, though, because of the concern that the signature needs to be authenticated. With a variety of software options available for doing so, this concern should be alleviated.
12. Regarding cancellation by a hotel, is it better to have nothing in the contract about this or is it better to have specifics of what happens if the hotel does cancel?
My recommendation is that it is better to include language to address a cancelation by the hotel. The provision lists the damages for which the group is entitled, including direct costs to find a new meeting location as well as indirect costs and attorneys fees. I do not recommend a mutual cancellation fee provision in which the same amount of cancelation fee is due whether the group or the hotel cancels, as the group has no way of determining whether the amount will be sufficient to cover its damages.
13. What do you do if a hotel REFUSES mutual indemnification? I have had some hotels lately REFUSE a mutual agreement.
If the hotel refused to indemnify the group, I would remove the group’s obligation to indemnify the hotel. The net effect of not having an indemnification provision is that the parties would need to sue each other separately to recover any damages awarded against it due to the other party’s negligence.
14. This is a sidebar question but I would appreciate your legal expertise. What is the group obligated to provide for a hearing or physically impaired attendee?
Under the Americans with Disabilities Act, persons with disabilities must have equal access to goods and services. For meetings, the hotel has the obligation to ensure the public areas are accessible to attendees with disabilities. The group has the responsibility for ensuring its program is accessible. Key items to consider depending on the disability would be room set-up, alternate forms of presentations (such as sign language interpreters) and alternate handouts (such as Braille materials). In each inquiry, the group must determine what goods and services it is offering and how it can provide equal access to those goods and services to someone with a disability.
