This document provides tips and guidance for successfully negotiating hotel contracts. It discusses key aspects of the negotiation process including being assertive but not aggressive, doing your homework, being willing to walk away, focusing on issues not personalities, and preparing options. The document also outlines important elements of a hotel contract such as event details, sleeping room blocks, function space requirements, food and beverage minimums, outside vendors, concessions, billing/payment terms, termination clauses, and more. Following these negotiation strategies and including these standard contract elements can help ensure a mutually beneficial agreement is reached.

1. Successful Contract Negotiations
By Marie Tamayo

2. What Is a Negotiator?
A negotiator is someone who specializes in mediating agreements
between two or more parties.
The goal of a negotiator is to reach an agreement which will be
mutually beneficial for all parties.
Although he or she may represent a specific party, this does not mean
that the negotiator is only interested in achieving this party's interests
and goals.

3. What Is a Negotiator?
A good negotiator recognizes that a mutual agreement will
be beneficial in the long term.
He or she can use a variety of techniques, relying heavily
on knowledge of the industry, tools, established
relationships. etc.
A good negotiators balances the needs and desires of their
clients with the reasonable expectations of the other side.

4. Hotel Contract Negotiation
Good news!!! You don't have to go to a negotiation seminar to sharpen up
your ability to negotiate.
We all negotiate in our personal and professional lives. We negotiate when
we go to a garage sale, or when we want to do something different at work, or
when we are dealing with members of the public. .
Sometimes its easy to negotiate, but other times, when we are not
negotiator at heart or have a great deal at stake…. or we are upset, the task
can be intimidating or difficult. Following are some tips that can help us be

5. Hotel Contract Negotiation
Don't be afraid to ask for what you want. Successful negotiators are assertive and
challenge everything – they know that everything is negotiable.
State Your Needs : The other hotel needs to know what you need. It is important to
state not only what you need but why you need it.
Be assertive not aggressive: Note that there is a difference between being assertive
and being aggressive. You are assertive when you take care of your own interests while
maintaining respect for the interests of others. When you see to your own interests
with a lack of regard for other people's interests, you are aggressive. Being assertive is
a quality of a good negotiator.

6. Hotel Contract Negotiation
Be quiet and listen. Negotiators are detectives. They ask probing questions and then listen
The other negotiator will tell you everything you need to know – all you have to do is listen.
Do your homework. This is what detectives do. Gather as much pertinent information
prior to your negotiation. What are their needs? What pressures do they feel? What
options do they have?
Doing your homework is vital to successful negotiation. You can't make
accurate decisions without understanding the other side's situation. The
more information you have about the people with whom you are
negotiating, the stronger you will be.

7. Hotel Contract Negotiation
Always be willing to walk away… and came back later. In other words, never
negotiate without options. If you depend too much on the positive outcome of a
negotiation, you lose your ability to say NO. When you say to yourself, "I will walk if I
can't conclude a deal that is satisfactory," the other side can tell that you mean
business. Your resolve will force them to make concessions.
Don't be in a hurry. Being patient is very difficult for Americans. We want to get it
over with. Anyone who has negotiated in Asia, South America, or the Middle East will
Tell you that people in those cultures look at time differently than we do in North
America and Europe. They know that if you rush, you are more likely to make
mistakes and settle for less.

8. Hotel Contract Negotiation
Show the other hotel how their needs will be met. Successful negotiators always look
at the situation from the other side's perspective. Instead of trying to win the
negotiation, seek to understand the other negotiator (hotel) and show them ways to
feel satisfied.
Trying to win at all costs does not work
If you "win" there must be a loser, and that can create more difficulty down the
road. The best perspective in negotiation is to try to find a solution where both
parties "win". Try not to view negotiation as a contest that must be won.

9. Hotel Contract Negotiation
Focusing on Personalities, not Issues : Particularly with people we don't like much, we
have a tendency to get off track by focusing on how difficult or obnoxious the person
seems. Once this happens, effective negotiation is impossible. It is important to stick to
the issues, and put aside our degree of like or dislike for the individual.
Prepare Options Beforehand: Before entering into a negotiating session, prepare some
options that you can suggest if your preferred solution is not acceptable. Anticipate why
the other party may resist your suggestion, and be prepared to counter with an
alternative.
Ultimately you need to know what you are negotiating for in order to be successful at it…
Step 1 – Visit the site

10. Step 2 -Request For Proposal (RFP)
When writing an
The RFP is a request for a quote for service RFP, think about it
as the first step
 identifies the goals and objectives to negotiating a
 provides a profile of the group contract
 provides historical data Use Facility
Negotiation check
list. Forms Package
Consider what you need vs. what you want Pg. 41
Needs are non-negotiable (See sample of
Wants can become the basis for negotiations RFP)

11. Hotel RFP
What It Should Include:
 Group profile (who/what the event is about)
 Preferred event dates (pattern and any flexibility)
 Number of attendees (if possible, include attendee profile)
 Meeting space requirements (i.e. setup of each room, # of people, accessibility)
 Preliminary schedule of events
 Estimated food/beverage functions
 Room block pattern (days/number of rooms per night)
 Concessions (i.e. suites required, parking passes, etc.)
 Specify if you plan to use your own a/v supplier
 Conference history (past locations, actualized room pick up, food/beverage spend)
 Date when proposals are due
 Decision date

12. The Contract

13. The Contract
Parts of Facility Contract (see Samples):
Preamble
Event Details
Sleeping Rooms
Function Space
Food and beverage
Outside Vendors
Function Space
Concessions
Billing arrangements
Termination
Cancellation and Attrition
Indemnification
Insurance
Dispute Resolution
Miscellaneous Provisions
Final Section

14. The Contract
1. Preamble: Is a statement at the beginning of a contract that identifies the
partners involved with names and addresses:
The intent Background Information
Offer of acceptance Window of time. Etc.
Recital information such as “whereas” Clauses
2. Event Details Section Include Facts about the event such as:
Event Name Event Type
Move-in and Move-out dates Early Arrival and departure Requirements
Sponsors and facility obligations under the Americans with Disabilities act (ADA)
3. Sleeping Rooms Section:
Types of rooms Numbers of rooms reserved
Reservation Confirmation
Complementary Rooms Cut-off Dates
Guarantees Deposits
Check-in/Check-out Rates
Taxes Early departure fees
Other Charges

15. The Contract
Function Space:
Should include • Basic terms • Conditions of Facility Clause
Basic Terms Specify:
Function Space Requirements
Room rental fees
Set up charges
Convention Services
Facility-Provided equipment
Details on union contracted facilities
Clause to disclose other events booked

16. The Contract
Function Space - Should include:
• Basic terms • Conditions of Facility Clause
Conditions of Facility Clause
Protects a group from physical deterioration of the premises
between the time the event is contracted to the time it is held.
Should address the facilities obligation if it is undergoing
construction, remodelations, etc.

17. The Contract
Food and beverage:
Number of meal functions
Guarantee date to confirm function space
Expected attendance
Menu and beverage Confirmation dates
Gratuities details, taxes, additional fees and regulations.
Attrition clause: Indicates the consequences if the event does not meet its
commitment or falls bellow number projected consumption.
Outside Vendors:
Details the facilities exclusive services allowable and what conditions are involved to
have outside vendors work at the facility.

18. The Contract
Concessions: There are 2 types of concessions
• Merchandise: food or refreshments sold on site (Concession
stands)
Hotel may allow client to set up its own concession stands
If income will be shared
• Contractual Agreement: One party provides something of
value to the other party in exchange for something else. i.e.
Hotel might offer free parking, free one day spa, etc.
(SEE PAGE 132 /Students Success Guide)

19. The Contract
Billing arrangements and terms:
• Method of payment
• Master account, third party billing etc.
• Deposits
• Terms
• Format of billing
Termination:
Details termination clauses for non-performance of the contracts without any liability, and
requires procedures that must be followed to terminate.
Force Majeure or Act of God: Limits liability for contractual non-performance due to an event
that cannot be controlled or avoided by any party.
Cancellation and Attrition:
Cancelation Clause – One party cancels the contract and does not provide the services outlined.
Can include liquidated damages clause that estipulate the amount of damages.
Attrition Clause – details the minimum requirement that have to be met by the event sponsor.
Attendance, sleeping rooms, food and beverage.
Slippage is usually between 10% to 20%

20. The Contract
Indemnification:
• One party agrees to protect the other party from liability as a result of a lawsuit from a third
party. Each party indemnifies the other from liability and they are equally protected.
• Some State laws outline indemnification- Insurance will provide the appropriate protection
Note: To avoid litigation costs or damages, add the language that “both parties hold
harmless, indemnify and defend” one another.
Insurance:
Outline insurance policies each party must have established:
Event cancelation • General liability
Certificate of insurance should be exchanged • Umbrella policies
If Additions existing policies are required. • Fire liability
Independent Contractor Liability • Exhibits
Valuable Papers and records • On-site Office
Workers compensation • Non-appearance
• Event cancelation

21. The Contract
Dispute Resolution:
Outlines the right and remedies of each party. Where and how will the dispute be resolved
State laws that apply in the interpretation of the contract Alternative Dispute Resolution (ADR)
stipulates the procedures to be used when resolving the conflict.
Arbitration: Non- court procedure using 1 or more neutral third parties
Mediation: Neutral third party meets with opposing side to find a solution
Miscellaneous Provisions:
Includes additional provisions:
Special Parking request
VIPs
Shuttles, transportation
Final Section:
Notices state who and how notices are to be delivered
Assignment addresses who can assume the responsibilities the contract.
Attachments are identified and clearly incorporated.
Authority of signatures states who can sign the contract.
Signature block
(Use venue Contract Check List – Forms Package Pg. 38)

22. The Process
Step 3:
Receive the contract
Review, amend, etc.
Link to Contract Double Tree
Step 4:
Receive BEO’s Banquet Event Order
Link to BEO (Pg. 136)
Industry Acronyms
Link (Page 139)

23. Women are the best negotiators

24. When it comes to hotel
contracts, everything is
negotiable, from amenities
to food and beverage.
Here is what experienced
corporate event managers
have learned about to
negotiate the best deal.
Modified and adapted by Marie Tamayo

25. Develop Your Own Contract
The ideal starting point for contract negotiations is to write
your own version of the hotel contract.
Even if a hotel doesn’t accept your contract, the process of
writing it will help you get familiar, learn and ultimately clarify
clauses in the contract. It will become a guide line of what
you want included in the hotel’s contract. While
negotiating, you can also add clauses from your own contract
to the hotel’s standard contract.
Writing your own contract allows you to protect yourself
against problems you’ve had at other events and to provide
for the specific needs of your attendees.

26. Get Everything in Writing
If the hotel doesn’t accept the contract, you may send
the hotel a prioritized list of items you wants included in
the hotel’s contract.
These items should not surprise the hotel. By the
contract- negotiation phase, the hotel should know your
basic needs for the event, based on your request for
proposal (RFP) and subsequent conversations.
As you’re establishing your relationship, you should
talk about your wish list the whole time.
Do not rely on the fact that you talked about it. Put it
in the contract.

27. Read Every Word
Read every word of your hotel contract, but read it three times
Keep an eye out for hidden fees as you read the contract.
During negotiations, ask the hotel about each of its charges
Always try to negotiate away any charges that do not apply to
your guests.
Hotels often add a maid-gratuity charge to the cost of the room
without telling the occupant or the event planner. Make sure this
is clear on the room rate section of the contract.
There are new policies and practices in the industry, such as
early-checkout fees, extended-stay fees, etc. . Ask the hotel for
a copy of its registration policies, including a breakdown of
charges for rooms, food and beverage, and other fees.

28. Negotiate For Amenities
You can negotiate for specific amenities to be
included in a contract for free or at discounted rates.
Free parking, free local calls, no charge for 800
numbers, Internet service, access to the health
club, complimentary shipping and receiving, room
upgrades, airport transfers, and the use of hotel props
and décor.
You can also ask the hotel to exclude some of these
amenities in return for lower rates or discounted fees.
Providing the hotel with historical information about
your attendees can help you negotiate amenities
away.

29. Specify Penalties
Most hotel contracts include specific penalties if YOU fail to
comply with the terms of the contract, but many do not
include penalties if the HOTEL cancels your event or fails
to meet other terms in the contract.
Consider “no competitors” clause in a hotel contract if
necessary.
Included penalties to protect your client if the hotel breaches
the contract.
Last minute changes cost money ….Concessions

30. Sell Your Event to the Hotel
If a hotel recognizes the value of your business, it will be more
willing to negotiate in your favor. To help the hotel recognize this
value you have to know what your meeting is about and what it will
bring to the facility.
Emphasize the aspects of your event that will bring the
hotel revenue.
For example, a typical hotel makes a
70- percent profit margin on sleeping rooms
20-percent profit margin on food
70-percent profit margin on beverage
Other hotel assets, such as meeting rooms, do not provide
the hotel significant revenue. In fact, if you don’t use
them, they’re likely to sit empty during your event. Because
of this, free meeting space may be easy to negotiate.

31. Partner with the Hotel
Make small adjustments to your meeting in the hotel’s
favor, such as booking your event over non-peak days like
Monday, Tuesday, and Wednesday, or booking multiyear
contracts. These concessions may give you more leverage
during negotiations.
• Keep the needs of your sales manager in mind
• Be flexible with the hotel – They will be flexible with you
• Be fair – They will appreciate it

32. Leverage
Leverage multiple meetings at same location. One of the more
effective strategies to saving money is to hold the bulk of your
events throughout the year at the same property. Hotel sales
managers are looking to achieve certain revenue numbers that
they are likely to show more flexibility to a client who they
know will return throughout the year vs. a one time client.
Leverage total number of guest rooms for the event. Hotel
sales managers will show flexibility on meeting room space
costs and even catering expenses if they know that an event will
incorporate a block of rooms. Guest rooms offer a greater profit
margin than any other event service.
Leverage additional discounts on guest rooms. Sales managers
will also discount guest rooms or provide their clients with the
lowest rate at that time. Event planners should compare the
prices that sales managers provide against any corporate
contract already established with that hotel -- especially if it's a
chain -- to secure the best price.

33. Do no negotiate against yourself
Never negotiate against yourself
• Once you make an offer, wait for a response before
making another offer. By waiting, you avoid the
possibility of rejecting your own offer and making
further concessions in a revised offer.
• If you don't wait, it encourages the other side to hold
off its response in hopes of getting a better offer, and
you lose the opportunity to learn from the other side's Do not negotiate
response. against yourself

34. Ask Questions
Throughout the contract negotiation process, ask open-
ended questions about the contract terms and how the hotel
operates.
Can you tell me more about your check-in and check-out
policies
Ask about in-room amenities: Do the rooms have a
refrigerator that’s usable for more than a mini-bar?”
 Inspect the rooms personally.
Ask Questions
 Ask if the hotel uses union labor. If so, make sure you know
the hotel’s labor policies so you don’t run into extra fees.
Ask who are their recommended vendors.

35. “The best negotiating tool is a smile”
marie@planaheadevents-cgmiami.com
Tel- 786-238-9110