Tuesday, April 9, 2019

Hotel Contract for Room Block Attrition


Room Block Attrition

6.1       If Group’s actual usage slips below either (i) 80% of the original Room Block Commitment or (ii) 80% of the adjusted Room Block (if any), Group agrees to pay seventy-five percent of the average group room rate for each room night below the 80%.  This amount shall be calculated by multiplying (.75) times the single/double Group rate, exclusive of taxes, for each room night below eighty percent (80%) of the original or adjusted Room Block.  (.75 x $ single/double rate = $ per room night attrition costs).  Such charges shall be added without tax, to, and payable as part of, the Master Account.

6.2       The parties agree that (a) the above formula for the Attrition charge is a reasonable estimate of the Hotel’s damages in the event that the room nights in the Room Block are not utilized and (b) the liquidated damages set forth in Section 6.1 do not constitute a penalty.

6.3       The Hotel shall undertake all efforts to resell any unused room nights in the Room Block and shall credit those sales against any attrition charges.

6.4       The Group shall not pay for off-line rooms (rooms being remodeled or not used for any reason).

Optional
Hotel shall waive the Attrition Clause if the parties agree to use Hotel’s services in connection with a future meeting of comparable size (a comparable number of room nights and a comparable food and beverage minimum) within the 24 months following the Meeting under this Agreement.  The terms of any such new meeting would need to be mutually agreed upon by the parties in their sole discretion and set forth in a definitive written agreement signed by the parties.  Any new meeting would be subject to availability.  Nothing in this Agreement requires the parties to agree to any such waiver or new meeting.

If there is no attrition in this Agreement, please include the following clause:

It is understood and agreed by the parties that the Hotel will not assert any fees against the Group or withdraw any of the complimentary concessions outlined in this Agreement should Group hold the Meeting but fail to fully utilize the Room Block.

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