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How I read a hotel event contract (from someone who used to sign them)

By Nicci Grotefendt, founder of Travel GHR

How I read a hotel event contract (from someone who used to sign them), photo 1How I read a hotel event contract (from someone who used to sign them), photo 2How I read a hotel event contract (from someone who used to sign them), photo 3

When I review a hotel event contract, I read it like the person who used to sign the other side. Because I was.

I spent years as a hotel general manager, which means I know exactly what each clause is designed to protect, and for whom. Here is what I check first, and what I wish every corporate planner knew.

The attrition clause

Most planners see a percentage and move on. I calculate the actual dollar exposure at three attendance scenarios, because the clause only matters on the day you miss it, and by then it is too late to negotiate.

An 80 percent attrition clause on a 200-room-night block means you owe the hotel for 160 room nights whether your attendees show up or not. At $189 a night, that is real money walking out the door. I want my clients to see that number before they sign, not after the final invoice arrives.

The room block pick-up language

Complimentary rooms, upgrades, and concessions are almost always tied to hitting a percentage of the block. Organizers can leave thousands in concessions on the table when nobody tracks pick-up against the contract in real time.

This is why I track pick-up weekly from the day the block opens. The contract tells you exactly what you earn at each threshold. If nobody is watching the numbers, nobody collects what was promised.

The banquet event order

When the BEO comes, this is where the money hides. I read every line item against what was agreed in the site visit, because "standard setup" means something different to every catering manager I have ever met.

The BEO is the last document before money moves. It deserves the same scrutiny as the contract, and it rarely gets it. I check for charges for things we never ordered and quantities that do not match the guarantee. Every line gets checked.

None of this is glamorous. All of it is the difference between an event that comes in clean and one that ends with a surprise invoice and a story nobody wants to retell.

Your planner should be doing this math in her sleep. But now you know what I am looking at while you are enjoying your own event.

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