Money Talks: Budget-Driven Meeting Planning
to Impress Your Boss and Advance Your Career
by Janeé Pelletier, MBA, CMP, Chief Operating Officer
Conference & Logistics Consultants
Handout: Sample Contract Clauses
Sample Audit Clause
At Association’s request in the event that attrition applies, the Hotel will compare
its in-house guest list to Association’s registration list. Association will forward its
registration list in Excel format to the Hotel by the close of registration. The Hotel
will compare its in-house guest list, which shall not be disclosed to Association,
with Association’s registration list, and any guest room occupied by an attendee
on Association’s event registration list, but not booked through Association’s room
block (an “Out of Block Attendee”) will be credited to Association’s room block
pick-up.
Sample Lowest Rate Clause
The Hotel agrees that the Association’s average daily single/double group rate will
be no higher than the lowest group or individual guestroom rates offered by the
Hotel over the Conference Dates. This does not apply to the Hotel's corporate
volume accounts, wholesale accounts, airline crew rates, casino player
promotions, online travel agencies or Hotel employee rate programs.
If the Hotel offers other groups or individuals any published rates, rates offered on
the Internet, rates in newspapers or periodicals, special transient promotional
weekend rates, holiday rates, or any other type of reduced rate program, which
are lower that the Association’s lowest confirmed rate over the Conference Dates,
Hotel may either immediately cease the offer or offer the terms to the attendees
on the same basis as offered to the general public.
Sample Resell Clause
If Guestroom Attrition occurs, the Hotel will use reasonable efforts to resell the
released or unused guestrooms over the course of the Conference Dates. The
Hotel will then credit TBD% of the average daily rate received from the resale of
these guestrooms towards any Guestroom Attrition Fee owed by the Association,
predicated on a "last guestroom sold" basis. The Association will only pay for
guestrooms that are not resold and remain available for sale.
Legal Disclaimer: The information in this presentation and all related attachments or handouts is provided solely for
educational purposes, and not intended as a substitute for legal advice. By use of said materials, participants assume all
legal and financial risk for any and all contracts or agreements based on the concepts or specifics of this material. Neither
the author nor ESSAE assume any liability for the use or misuse of the information contained herein. It is always
advisable to seek legal advice on contractual matters.
Money Talks: Sample Contract Clauses
Page 2
Sample Room Block Reduction and Attrition
The Hotel and the Association agree to work together to achieve an accurate
reserved room block. The Association agrees to reserve a reasonable room
block. The Hotel agrees to work with the Association to make reductions to the
room block if needed.
Group and Hotel agree to review the room and space commitment on or before
the following dates:
 Dates TBD according to your schedule
On these dates the parties will evaluate the room and space commitments.
Based on such evaluation, if the parties mutually agree to any adjustments to the
guest room and space block, as well as corresponding changes to Group’s
meeting and function space block, or to the guest room and food and beverage
attrition amounts set forth in the Attrition clauses below, such changes to the
Contract shall be confirmed in writing and signed by both parties.
If the total cumulative room nights of the Association’s pickup and resold
guestrooms is less than TBD% of the final reserved block according to the policy
above, the Association will be responsible for a Guestroom Attrition fee equal to
the difference between the total of room nights used plus resold room nights and
TBD% of the final guestroom nights blocked, charged at 70% of the Association’s
average group rate. If the hotel offers a lower rate as detailed above, the attrition
will be calculated by the method above, but based on that lower rate.
Sample Hotel Occupancy Clause
Despite any other terms of this Agreement, if Guestroom Attrition fees are
incurred, for each day the Hotel achieves an average occupancy of 95% or
greater of the available/sellable inventory of guestrooms (according to the Hotel's
nightly audit report) over the Association's Conference Dates, the Hotel agrees to
waive any Guestroom Attrition fee that would have been incurred by the
Association for that day. If the Hotel charges an early departure fee, all of these
fees will be credited against any Guestroom Attrition fee.
Sample Waiver of Attrition Fees
Despite any other sections of this Agreement, if attrition fees are incurred, for
each day the Hotel achieves an average occupancy of 95% or greater of the
Hotel’s overall available/sellable inventory of guestrooms (according to the Hotel’s
nightly audit report) over Association’s Conference Dates, the Hotel agrees to
waive any Attrition fees that would have been incurred by Association for that day,
if attrition were to be calculated on a daily basis instead of a cumulative total as
defined in this Section.
Legal Disclaimer: The information in this presentation and all related attachments or handouts is provided solely for
educational purposes, and not intended as a substitute for legal advice. By use of said materials, participants assume all
legal and financial risk for any and all contracts or agreements based on the concepts or specifics of this material. Neither
the author nor VSAE assume any liability for the use or misuse of the information contained herein. It is always advisable
to seek legal advice on contractual matters.
Money Talks: Sample Contract Clauses
Page 3
Sample Cancelation Clause
It is agreed that under no circumstances will the Association cancel this
Agreement for the sole purpose of holding the same event at any other facility,
and the Hotel will not cancel this Agreement for the sole purpose of replacing the
Association with another group.
If the Hotel is advised that this definite commitment is canceled, liquidated
damages will be charged. The amount will be based upon the percentage of three
(3) peak nights revenue at the average group rate as indicated below, as well as
the percentage of stated F & B minimum in section 15 of this agreement.
Cancellation: from inception to 730 days prior to Conference Dates
from 729 days to 365 days prior to Conference Dates
from 364 days to 180 days prior to Conference Dates
less than 179 days prior to Conference Dates
25%
50%
75%
100%
The Hotel shall undertake all reasonable efforts to resell canceled rooms and shall
credit those revenues against the liquidated damages in the amount not to exceed
the full amount of such damages. Liquidated damages, if any, shall be due and
payable thirty (30) days after the Conference Period, provided the Hotel provides
proof of its efforts to mitigate damages and proof that rooms being held for the
Association's Conference were unsold.
Sample Rebooking Credit
If cancellation fees are paid to the Hotel by the Association as provided for herein,
and the Association holds another Conference of the same or similar size or
revenue at the Hotel within 12 months of the last day of the original Conference
Dates, the Hotel agrees to credit to the Association's Master Account for any such
Conference, a dollar amount equal to fifty percent (50%) of the cancellation fees
paid by the Association.
Sample Service Charge Increase Limit
The Hotel's total of mandatory service fees and gratuity charges for Catered
Functions during the Conference Dates will not exceed TBD%. Applicable taxes
will not apply to service fees and gratuity charges unless required by law.
Sample Menu Price Increase Cap
Current F&B menus are attached to this agreement as Appendix TBD. Hotel
agrees not to increase menu prices by more than TBD% per year between date of
contract and date of event. Should menu prices increase beyond this limit, Hotel
agrees to honor current menu prices plus TBD% per year increase for
Association.
Sample Affiliate Performance Clause
The Hotel will credit the Association for all events and hospitality suites hosted by
exhibitors, sponsors, affiliates, and all other groups related to the Conference for
the purposes of determining food and beverage performance. The Association
will provide the Hotel with a list of confirmed exhibitors, sponsors and affiliates.
Legal Disclaimer: The information in this presentation and all related attachments or handouts is provided solely for
educational purposes, and not intended as a substitute for legal advice. By use of said materials, participants assume all
legal and financial risk for any and all contracts or agreements based on the concepts or specifics of this material. Neither
the author nor VSAE assume any liability for the use or misuse of the information contained herein. It is always advisable
to seek legal advice on contractual matters.
Money Talks: Sample Contract Clauses
Page 4
Sample Food and Beverage Attrition Clause
The Association agrees that it will provide, and Hotel is relying on, likely total food
and beverage revenue of $TBD (plus tax and service) associated with the
Conference. If the Association should fail to meet this revenue, the Association
will be responsible to pay 60% of the difference between the total food and
beverage revenue and the amount equal to $TBD. The Association will only be
responsible for the payment of applicable taxes and service charges on the food
and beverage actually served to the Conference attendees, and not on the net
revenue portion paid by the Association.
Sample Over and Above Discount
If the total food and beverage revenue exceeds $TBD+15%, exclusive of tax and
gratuity, (a 15% increase in committed Food and Beverage revenue), the Hotel
will extend an additional 5% discount off the catering selection and all menu
prices.
Sample Resort Fee Description
Hotel will add a Resort Fee of $TBD per night to the Association’s guestroom rate
as noted above. The Resort Fee is a payment for the following guest services,
which shall be extended to all Association guests at no further charge: [LIST OF
SERVICES]. No additional fees shall be added to the guest room rate other than
those required by law.
Legal Disclaimer: The information in this presentation and all related attachments or handouts is provided solely for
educational purposes, and not intended as a substitute for legal advice. By use of said materials, participants assume all
legal and financial risk for any and all contracts or agreements based on the concepts or specifics of this material. Neither
the author nor VSAE assume any liability for the use or misuse of the information contained herein. It is always advisable
to seek legal advice on contractual matters.