Five Key Areas To Find Risk:
1. Reservation Cut Off Date
2. Room Rate
3. Meeting Space
4. Food & Beverage Minimum
5. Bedroom Attrition
In each of these categories we have learned to include specific clauses to ensure that the amount of risk is assumed by all stakeholders.
Every organization we work with has their own level of tolerance for risk. The key is to ensure that everyone understands the consequences of under performance.
The best compliment we ever received from a client, who is a lawyer, is how balanced our contracts are. The goal is to work towards everyone assuming some level of risk and not have one party (the client) bear the weight of future unknowns.
Each day, month and year the landscape changes. We review hotel contracts everyday and adjust accordingly. Even this week a contract came across my desk with a clause that I’d never seen before. After some discussion with the hotel, we were able to edit the clause while it is a daily reminder of how the smallest of details matter.
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