Sunday, April 14, 2019

Hotel Contract Rights of Termination for Cause

Rights of Termination for Cause

Except as otherwise provided in this Agreement, neither party shall have the right to terminate their obligations under this Agreement. This Agreement is, however, subject to termination for cause without liability to the terminating party, under any of the conditions below:

Definition: The phrase “without liability” whenever used in this Agreement shall be deemed to
include a refund by the Hotel of all deposits and prepayments made by Group or Group’s attendees.

13.1     Force Majeure: The performance of this Agreement is subject to acts of God,
government authority, disaster, war, acts of terrorism, or other cause beyond the parties’ control, which make it inadvisable, commercially impracticable, illegal or impossible to perform as originally contracted under this Agreement. It is provided that this Agreement may be terminated for any one or more of such reasons by written notice from one party to the other without liability.

            In the event that the Group decides to hold its meeting despite such circumstances, the Hotel shall waive fees related to a reduced-sized Meeting (including any room attrition fees, function space rental, food and beverage attrition fees) and shall offer the Group’s guests any lower room rate offered by Hotel during the contracted dates.

            The parties may, however, agree to go forward on such terms and conditions that may be re-negotiated.

            Any deposits made shall be refunded to the party within 30 days after written notice of                            cancellation.

13.2     Construction or Renovation: No major construction or renovations shall be undertaken on the Hotel during the Meeting without a minimum of _________ (#) months prior written notification to the Group. Only repairs of an emergency nature and those that are considered regular maintenance shall be conducted immediately prior to or during the Meeting and shall be halted if the repairs in any way disturb meeting sessions, traffic flow or guest accommodations.  If for any reason renovation and/or construction is unavoidable and the Group in its reasonable judgment determines that this activity will disrupt or materially impact Group’s meeting space or guest rooms, the Hotel shall make every effort to provide equal alternative space available within the facility. If both parties agree that equal alternative space is not available, the Group may cancel this Agreement without penalty.

            In such event, Hotel shall pay Group reasonable costs incurred in relocating the event to another hotel of equal quality in the same city, i.e. differential in increased room rate, differential in increased food and beverage commitment, transportation cost, increased meeting room rental, and reproduction of marketing materials.

            In the event that the Hotel will be undergoing any construction or renovation during the Meeting dates, the Hotel shall promptly notify Group, and Group shall have the right to cancel this Agreement without liability upon written notice to the Hotel if, in Group's reasonable judgment, such construction or renovation may tend to unreasonably affect the use of the facilities or the quality of service to be provided under this Agreement.

13.3     Safety System: Hotel will notify Group if construction or renovation will result in disengagement of the hotel’s safety system in the areas to be used by Group. 

13.4     Strike or Other Labor Dispute: The Hotel shall specify in writing any unions that are party to a collective bargaining agreement with the Hotel, at the Hotel Address, and the responsibilities of each such union, the status of the relationship with the union and its members, any applicable rates, and the expiration date for each collective bargaining agreement.  The Hotel agrees to promptly notify the Group of any strike vote taken by employees or a union. 

The Hotel represents and warrants that, to the extent that the Group will be bound by any rules or regulations of the Hotel, or any agreements between the Hotel and unions or third parties, such rules and regulations have been provided to the Group in advance of the execution of this Agreement. 

            In the event of any labor disputes or work stoppages actually occurring or threatened by a majority of the Hotel’s employees and involving the Hotel’s line level front desk or food/beverage employees, the Hotel shall promptly notify Group, and both parties shall have the right to renegotiate this Agreement without any liability.  If, in Group’s reasonable judgment, such labor dispute may tend to materially disrupt or interfere with the use of the facilities or quality of service to be provided under this Agreement or this Addendum, cancellation of all activities are to be considered without liability.

            In the event of any strikes, work stoppages or other labor disputes, actual or threatened, involving the Hotel employees, the Hotel shall promptly notify Group, and Group shall have the right to cancel this Agreement without any liability upon written notice to the Hotel.

13.5     Deterioration in Quality: The Hotel warrants that service, physical structure, and cosmetic appearance at the time of this Agreement shall be the same or better on the opening day of the Meeting.  The Hotel shall maintain its current “star”, “diamond”, or other rating.  Failure to maintain this status may be grounds for the Group to terminate this Agreement without liability.

13.6     Change in Ownership: The Hotel agrees to notify the Group in writing of any change of ownership, franchise affiliation or management of the Hotel or if the Hotel shall (i) be adjudicated as bankrupt or insolvent by any court of competent jurisdiction (ii) be voluntarily or involuntarily placed in reorganization under any bankruptcy laws (iii) make an assignment for the benefit of creditors (iv) consent to the appointment of a receiver, liquidator or trustee for itself or for a major part of its assets (v) file any pleading, petition or other instrument in any court whatsoever seeking to take advantage of any bankruptcy or insolvency act or (vi) file in any proceeding whatsoever any instrument in which it shall in substance or effect admit its inability to pay its debts as they mature.  The Group shall have the right to terminate this Agreement without liability under these circumstances if the Group believes that the services and appearance of the Hotel may be affected adversely by such a change in ownership or management or possible bankruptcy.

            If Group decides not to terminate this Agreement, Hotel shall provide group with a letter stating that all concessions set forth in this Agreement will be honored without substitution.  If Group’s marketing material or handouts have to be altered due to the change, hotel agrees to reimburse group for reproduction costs.

The Hotel shall promptly notify Group if there is a change in Management Company or ownership of the Hotel prior to the Meeting or if the Hotel no longer is operating as [HOTEL NAME] and Group shall have the right to cancel this Agreement without liability upon written notice to the Hotel. 

13.7     Failure of the Hotel to meet its obligations described above would, without limitation, be             cause for a reduction in the Group’s Room Block or termination of this Agreement.

Add the following clause when you are contracting with multiple properties, i.e. hotels and/or convention centers.

13.8     Contingency: Group’s performance under this Agreement shall be contingent on the availability of the [NAME OF PROPERTY(S)] for the period covered by this Agreement.  If, for any reason beyond the control of the Group, the [NAME OF PROPERTY(S)] is not available, or is not in acceptable condition or is no longer suitable for Group’s needs, including facility construction that would adversely affect the meeting or attendees, this Agreement may be terminated by written notice from Group without liability.

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