Saturday, April 13, 2019

Hotel Contract Changes and Cancellation


11.1     Any changes or additions to this Agreement shall not be binding until such changes or additions have been approved in writing by both parties.


12.1     This Agreement may be terminated for Cause (as defined in Article XIII below) upon written notice given by either party to the other.  “Cause” shall include, but not be limited to, a breach of the obligations under this Agreement.  In the event of any termination of this Agreement for Cause, the Hotel shall immediately refund any deposit or money paid in advance by the Group or its attendees, and the Group shall not be responsible to pay the Hotel any additional amounts otherwise due under this Agreement.

12.2     In the event that the Group terminates this Agreement other than for Cause, the Group shall pay, within 30 days of notice of cancellation, in lieu of any other amounts due hereunder or otherwise in respect of this Agreement, liquidated damages  (damages are defined as “lost profit” not 100 percent of the revenue) determined as follows:

Date of Decision to Terminate
Amount of Liquidated Damages Due
Spell out specific date
Spell out specific date
Spell out specific date
Spell out specific date

These liquidated damages are inclusive of all applicable state and local taxes.

*Maximum damage is based on the number of sleeping rooms, less 20% slippage multiplied by 75% of the confirmed Group rate.

            Total Sleeping Room Block                           300 room nights
            Allowable 20% slippage                                 - 60 room nights
            Total Room Nights Responsible                  240 room nights

            Sleeping Room Rate Confirmed                    $129.00
            75% of rate (profit not revenue)                     $  96.75

            *Maximum amount of damages due: 240 room nights multiplied by $96.75 or $23,217.60

12.3     Cancellation by Hotel: In the event that Hotel terminates this Agreement other than due to a cause listed in Section 13.1, Hotel will be responsible for payment of reasonable additional expenses incurred by Group as a result of moving the event to an alternate hotel as set forth below:

·      Increased room rate at the alternate hotel.
·      Increased meeting room rental
·      Increased food and beverage expenses incurred at the alternate hotel for similar menu items for the same events that would have been held at the Hotel.
·      Reasonable costs incurred for preparing and reprinting materials already printed listing the Hotel as the location of the event, or for preparing and printing materials or sending email notifications of the change in location.
·      Other expenses or losses that Group can demonstrate were reasonably related to the termination by Hotel, including attorney fees.

            Group will provide to the Hotel reasonable documentation of increased expenses listed above that are incurred. Hotel will provide the reimbursement payment within 30 days after the parties mutually agree on the amount to be reimbursed. In the event that the parties cannot agree on the amount of reimbursement, they agree to submit their dispute to arbitration pursuant to the Dispute Resolution provision of this contract for the event.

12.4     The exercise by the terminating party of the option to terminate is agreed by the parties to constitute the exercise of a contractual option and not a default and in no event shall the terminating party be liable for more than the option price stated above.  The terminating party shall make payment due as a result of termination of this Agreement under the terms of this provision to the other party within 30 days after written notice.

12.5     In the event of cancellation, the Hotel shall make all commercially reasonable efforts to resell the Group’s cancelled rooms. In no event may Group transfer or resell its rights under this Agreement to any third party room reseller for purposes of reselling cancelled or unused portions of the guaranteed Room Block.  Group understands that the Hotel sells its remaining inventory first before selling Group’s cancelled inventory.  If the Hotel does resell any or all of the cancelled guest rooms and meeting space at an amount equal to or greater than the cancellation option amount set forth herein, the Hotel will proportionally refund the cancellation payment.

12.6     Notwithstanding the above, in lieu of paying the cancellation fee noted above, Group may elect to contract with the Hotel for the same or similar sized meeting as the meeting that is the subject of this Agreement, provided such meeting is scheduled to occur on or before [insert date within 2 years of original meeting dates].  The specific dates of such meeting shall be mutually agreed upon by the parties.

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