The information provided in this video does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information in this video may not constitute the most up-to-date legal or other information. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.
Introduction:
Hotel contracts are like high-stakes bets on the future, and the unpredictability of economic cycles can make these bets even riskier. Both hotels and meeting planners aim to mitigate risks, but how can this be done when economic downturns are factored in?
In our recent webinar, Sean Whalin (Co-founder and CEO of HopSkip) sits down with legal experts Barbara Dunn (Partner at Barnes & Thornburg LLP representing groups) and Lisa Sommer Devlin (Devlin Law Firm, P.C. representing hotels) to discuss the complexities of incorporating economic downturn clauses in hotel meeting and event contracts.
TL;DR:
What Clauses Can Be Added to Hotel Contracts to Mitigate Economic Downturns?
- Hotel contracts are futures agreements, locking in terms of future services and inventory.
- Both parties assume risks and modifying contracts based on economic downturns usually gets pushback.
- Experts suggest booking conservatively and building flexibility into contracts rather than relying on economic downturn clauses.
- Site selection and best-rate negotiation can also provide buffers against economic uncertainty.
