A presentation given on 4/16/12 at the Continuity Insights Management Conference. Covers how to work effectively with hotels to guarantee housing for your critical personnel and best practice tips for hotel contract negotiation.

1. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Housing for Critical Personnel:
The Missing Piece of Your Continuity Plan
Michelle Lowther, Principal

2. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Most Housing Programs Are Ineffective
• Companies cannot differentiate themselves
• Contingency contracts provided by hotels typically offer no
firm guarantee
• What we want
– We call hotels in, they agree to everything on our wish list
– They’ll have all the rooms we’ll ever need
– They’ll be ready whenever we need them
– They’ll give them to us at a discount
– We don’t have to commit to anything!
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

3. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
What Hotels Hear
I’d like something for
nothing, please.
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

4. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Business Continuity Housing
• Understanding housing component of BC plans
• Things to consider
when choosing hotels
• How hotels view your RFP
(request for proposal)
• Negotiating hotel
contracts
• Best practices
• Q & A
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

5. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Housing Component of BC Plans

6. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
BC Plans Are Complex
• Insurance policies
• IT infrastructure
• Phones
• Mail routing
• Corporate real estate concerns
• And the list goes on…
• As a result, housing is often omitted or forgotten
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

7. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
What About You?
• How far in advance do you deploy & what are the
parameters?
• Who at your company handles housing, and what is
their degree of expertise in this area?
• How long does it take to put together the rooming
list, handle contracts, get confirmation numbers to
employees, etc?
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

8. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
What About You?
• How many people handle this task for your
company?
• How many hours spent? Hard cost of that?
• Soft cost of productivity loss?
• Opportunity cost for the learning curve?
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

9. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Things to Consider with Hotels

10. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Things You Already Consider
• Location (proximity to DR site)
• Price (what’s included?)
• Contract terms
• ADA accommodations
• Proximity of restaurants
• Shuttle service (especially to DR site)
• Room facilities (Kitchenettes? Suite product?)
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

11. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Things You Should Also Consider
• Pet policy
• Average historical occupancy/seasonality
• Business mix (group vs. transient)
• Transient booking window
• Ratio of kings to double/doubles
• Existing relationships (using hotels in your travel program)
• Rate range (quote up front!)
• Hotel’s competitive set
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

12. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
How Hotels View Your Business

13. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
How Hotels View Your Business
• Definitions
– Room nights (perishable good)
– Pattern
– Volume
• Your budget
• Contract terms
• Credit worthiness
• Potential for repeat or other future business
• Existing relationship
• Ancillary revenue streams
• Displacement of other business
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

14. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
It All Comes Down to This!
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

15. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
RFP Tips
• Be detailed and thorough from the outset
• Anticipate their questions, and have the answers
• Give them a realistic decision timeline
• Consider a multi-year contract
• Make it as attractive for the hotels as possible
– Nothing that would displace other business
– Organized program that’s turnkey for them (consider a standard Letter
of Agreement)
– Fair expectations with contract terms and concession requests
• Find out how many similar agreements the hotel has in place
• Make sure they know whom they’re competing with
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

16. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Negotiating Hotel Contracts

17. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Contracts:
More Flexible Than You May Think
… as long as you
know where to look!
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

18. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Key Terms in Hotel Contracts
• Attrition
• Cancellation
• First right of refusal
• No early departure fees
• Provision to renegotiate rates if block changes significantly
• Billing instructions
• Mutual indemnification
• Successors & assigns
• Concessions
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

19. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Best Practices

20. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Best Practices
BUSINESS CONTINUITY
• Key is contracting to maximize resell potential
– Shortest transient booking window
– Largest transient mix
– Highest historical occupancy
– Smaller blocks spread across multiple hotels (maximizes resell and minimizes
displacement)
• One standard Letter of Agreement signed by all hotels in your program
– Use of first right of refusal clause
– Weekly inventory reports
• Pre-negotiate contract terms
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

21. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Best Practices
DISASTER RECOVERY
• Use of first right of refusal clause
• Contracting for short periods of time to minimize financial risk
• Provision to renegotiate rates and terms for extended stay
• Early out clauses
• Daily room block audits and monthly invoicing
Success depends on open, consistent communication with your hotel contact
and the strength of your relationship!
Contents of this presentation, including but not limited to hotel contract terms and business
methodology, are the sole property of Continuity Housing, LLC. Patent pending. All rights reserved.

22. April 16-18, 2012 • Talking Stick Resort • Scottsdale, Arizona
Any questions?
THANK YOU!