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August 2013

Unsold Rooms Credit: Is a Hotel Obligated?

HSMAI MEET - Insights presented by Meetings Focus
HSMAI's MEET Presented by Meetings Focus
Unsold Rooms Credit:
Is a Hotel Obligated?
Meeting planners need to be diligent when examining attrition clauses, and consider adding their own

By Tyler Davidson

A recent blog post on by meetings industry attorney and speaker Joshua L. Grimes, managing attorney of Grimes Law Offices, reinforced probably the most practical pieces of legal advice going: Make sure to read the contract and don’t be afraid to add clauses.

This bit of obvious—yet often not heeded—advice is especially true in the area of unsold rooms for meetings, and meeting planners who don’t take an aggressive approach in understanding the contract clauses relating to this potential financial time bomb can put their career and organization in peril.

“Many planners do not realize that there’s no obligation for the hotel to give credit for resold rooms unless you put something in the contract, because it’s sort of a ‘second nature’ clause,” Grimes says. “I don’t know any hotel who refuses to put that in the contract if they’re asked, but you have to ask.”


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