May 2015
Notes on Reviewing Hotel Contracts
1. The name on the contract is: National Garden Clubs, Inc. - __________ Region.
2. The person who signs the contract is: the Region Director at the time the contract is
signed, not the host state.
3. Contact person on the contract is: the Meeting Chairman, State President or other.
4. Check that the dates are accurate – including the year. Typos happen!
5. Check when the deadline is for signing the contract before it becomes void.
6. Hotel deposits are paid by the Region, not the host state.
7. If a State Garden Club is having a meeting before or after the Region meeting, the State
meeting must have a separate hotel contract in the name of the State organization
that is signed by the authorized person for the State organization.
TWO MOST IMPORTANT ITEMS
1. HOTEL ROOM BLOCK AND HOTEL ROOM ATTRITION
Hotel Room Block
 The Hotel Room Block is the total number of rooms used over the course of the whole
meeting, and this total number is stated in the contract.
 The block is usually stated in the contract as a total number of rooms and then a
breakdown of the specific number of rooms for each night.
 To determine the number of hotel rooms (sleeping rooms) to book for each night, use
previous years contracts and/or hotel bills as a guide. It’s a balancing game: you don’t
want a bigger commitment than the members can fill; but you don’t want to have not
booked enough rooms so that the members can get the group rate.
 Some contracts that are signed several years ahead of the meeting have a date at which
the number of rooms in the block can be changed by a certain small percentage. This
ability for adjustment in total room numbers used is an advantage, so ask the hotel about
this in the initial negotiations.
Room Block Attrition
 Notice what the percentage of the total hotel block must be fulfilled in order not to have
to pay penalties after the meeting if not enough rooms are booked. This is
often called Room Block Attrition in contracts.
 Attrition rate of up to 20% is considered an acceptable amount. Example: The meeting
has a room block of 100 rooms over the course of the meeting with a 20% room block
attrition rate. The meeting uses 85 rooms during the meeting. The meeting will not be
charged for the remaining 15 rooms not booked. If the meeting had booked only 70
rooms, the meeting would have to pay for 10 rooms not booked.
Room Block Release Date
 This is the date a member would need to make a reservation to get the reduced group
rate. After that date, the hotel many “sell” any rooms not reserved by the meeting
attendees. Anyone making a reservation after that may have to pay a higher rate. A
month before arrival is considered standard practice, but the closer to the meeting is
always better.
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May 2015

If the meeting is being held in a location with many attractions for personal vacations or
sightseeing, consider negotiating for the same reduced group rate for hotel rooms a few
days before or after the meeting for use by the members to stay in the area.
2. Food and Beverage Revenue
 The contract will specify the minimum total amount spent on food and beverage over the
entire time of the meeting. Notice what counts toward this total. Taxes, gratuities
and other service charges do NOT count toward the total, as well as bar
sales and room service. Refer to previous contracts and hotel bills to see what is an
average that was spent. If this minimum amount is not met, the meeting will pay the
difference between the amount actually spent and the designated minimum.
 Many hotels don’t allow food to be brought in – find that out before a decision is made to
have a reception with the members bringing in food.
 There is a date or time period before the meeting that the menu items and prices will be
determined, as well as a date when the count for meals must be confirmed. Notice if
there is a percentage of adjustment above or below the meal count submitted to the
catering department that the meeting is allowed without being charged.
 All food and beverage prices are usually listed without any of the other charges applied,
such as service charges, taxes, gratuities, etc. Look in the contract to see what these
charges are. They are based on percentages of the food cost. Meeting information
should state the total cost of the meal, not just the base price.
 Does the contract have a statement on alcohol liability – who is responsible if a member
of the organization consumes alcohol on the hotel property and causes an accident on
or off the property? This is becoming more of an issue in today’s world. A good policy
for the meeting is to never serve alcohol with a meal, as this means the organization
supplied the alcohol to the members. Options are to have a cash bar for members during
a social time or to have the members use the hotel bar. In these instances, the member
has independently chosen to consume the alcohol by having to purchase it – the organization
has not supplied it. In both examples, the responsibility is on the server (hotel).
OTHER ITEMS OF CONSIDERATION
1. The person signing the contract may not accept reward points from the hotel for
signing the contract. (NGC Standing Rules, BOARD OF DIRECTORS, #1.). Either
waive the points or try to negotiate some extra complimentary rooms for the meeting
committee or a speaker, reduced rate on something else, like parking.
2. Meeting Rooms
 Hotels vary on whether there are charges for meeting rooms. Often there aren’t any if
you buy meals for the meeting and book hotel rooms. If there are meeting room
charges, negotiate to either eliminate or reduce the charges.
 Risers – Be aware that hotels may have a limit on the number of risers that can be used
for room set-up at no charge. Negotiate the charges for use of additional risers.
 Tables and skirting – If the meeting is going to have a lot of educational displays, etc,
using tables that require skirting, the hotel may charge or have a limit (maximum) on the
number of tables with skirting they will supply before there is a charge per table. Ask if it
is not stated in the contract, and it is another place for negotiation.
3. Changes to Meeting and Banquet Rooms – Some contracts state the hotel has the
right to move the location of the meetings and meals to other rooms in the hotel based on the
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possibility of their accepting a contract for a larger group. There will be nothing that can be
done about this once the contract is signed, and it is standard practice in the hotel industry.
4. Total Cost of the Hotel Rooms (sleeping rooms) - In the contract the cost of the
rooms is usually listed without any city, county, state or federal taxes or other fees applied.
Look in the contract to see what those are in addition to the cost of the room. These
gratuities and fees cannot be negotiated, but meeting information should state the total cost,
not just the base price of the room.
5. Audi-Visual
 Most hotels require the use of their audio-visual equipment and staff or their outside
company that provides it. This needs to be known so a speaker is instructed not to bring
his own equipment.
 Find out the specific charges (they are usually not in the contract) for microphones (all
types – podium, lavaliere, etc), screens, power point projectors, etc. This is another
place for negotiation.
6. Vendors and Security – If the meeting includes having outside vendors (as opposed to
members who are selling items), consider:
 Are there spaces/rooms that can be used for the vendors that can be locked?
 If the vendor space cannot be locked, does the contract specify the use of only the
hotel’s security; and what is the cost for that?
 Is proof of vendors insurance required by the hotel and what amount of insurance? If it
is, this can influence the selection of vendors and your instructions to vendors.
 Are there charges for tables, skirting, etc. that the vendors will use? Will it be charged to
the vendors or will the meeting absorb the charges?
8. Parking – Find out if there is a charge for parking. This is another place for negotiating if
the price is high.
9. Any discounts, reduced rates, etc. – Any negotiated discount or extra benefit needs
to be listed in the contract. “A convention manager said we could…..” will not be acceptable
if that hotel representative is no longer employed there, and hotel staff turnover rate is high.
7. Cancellation Policy and Penalties
 The contract will have the dates for cancellation and what the penalties are for
cancellation. This is usually not negotiable. There may be differences from one hotel to
another, and this may be a determining factor in choosing a hotel.
 It is usually standard to have a contract with a Force Majeure clause. Force Majeure
means there are unforeseeable circumstances that prevent someone from fulfilling a
contract, such as acts of God, war, strikes, earthquakes, terrorism, etc. If the contract
doesn’t have one, ask what happens in these types of circumstances – especially
extreme weather ones like blizzards, hurricanes, tornados, etc. that prevent the contract
from being fulfilled.
10. If a credit application is required, the Region Director would send a copy of the signed
contact to NGC Headquarters with the credit application form for processing.
11. Liability Insurance
 Most hotels require this. It covers what happens in the rooms associated with the
meeting, not the main hotel spaces and parking lot.
 The Region Meeting will need to use NGC’s liability insurance. The certificate of liability
can only be requested within 6 months of the meeting. These renew on an annual basis,
and a current copy must be provided to the hotel at the time of the meeting.
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