Hotels providing meeting space need legal protection

GANDER, NL - Hotel owners offering meeting space, large and small, need to protect themselves with a legal rental contract, according to Brenda Walsh.

A tourism specialist with the Newfoundland and Labrador department of Tourism, Culture and Recreation, Walsh spoke to delegates at last month’s Hospitality Newfoundland and Labrador conference.

She said it is in a hotel owner’s best interest to draft a legal document when renting rooms and space for meetings and conferences.

"The hotel contract is an industry standard and you need to have one. You need it for the protection of owners and clients," Walsh explained during a presentation to the Newfoundland and Labrador Hotel/Motel Association.

Situations that call for a contract include weddings, meetings, conferences and receptions - any gathering involving a large number of people and a large drain on hotel resources.

It is not just a large resort or conference centre that should have a formal agreement. Walsh said any hotel owner booking 10 more rooms should have a contract drawn up just in case.

"Contracts are getting more detailed and more onerous," Walsh said. "The hotel contract should reflect everything they (clients) do under your roof."

Walsh said items that should be spelled out in a contact include a listing of meeting space requirements, audio/visual equipment needs, the number of rooms booked, room rates, staffing levels, food and beverage needs, cancellation clauses, check-in and check-out times and cost of the rental including all taxes.

From the client’s perspective all of these items are negotiable and changes can be requested once the hotel has issued the contract.

Walsh stressed the importance of specifying how many rooms will be free for the client - the standard is one in 50 - as well as reservation procedures and booking cut off times.

Another trend becoming increasingly common is the request for "green meals" - food and beverage service that is environmentally friendly.

Walsh said clients are going to ask that beverages be served only in reusable mugs, not throwaway Styrofoam, plastic or paper. That means no plastic forks and spoons either.

"Expect in the next couple of years that you are going to be challenged because they will want a green meal," Walsh said to delegates.

Another practice becoming standard is the requirement for minimum and maximum stays, particularly during special events that draw large crowds.

Walsh used the example of hotels in Monaco that require guests to stay for a minimum of one week during the Monaco Grand Prix and the four day commitment put in place during the Montreal Grand Prix. Even the East Coast Music Awards in Fredericton last month had hotels enforcing a three night minimum stay.

"It protects your space and your inventory. You have peak times when you should be able to maximize your business," Walsh said.

"It is the industry standard and it is something you are doing to protect yourself and your industry."

Walsh also said to not be afraid to ask guests booking during special events where space is at a premium to pay for the entire stay in full and in advance. Should a guest cancel a booking during a special event, the stay can also be deemed non-refundable, Walsh said.