The 5 Most Common Mistakes in Hotel Contracts (and How to Catch Them

The 5 Most Common Mistakes in Hotel Contracts (and How to Catch Them

August 01, 20252 min read

What Are the Most Common Hotel Contract Mistakes Planners Make?

Let me be honest—most hotel contracts aren’t built for planners. They’re built to protect hotel revenue. That’s why so many well-meaning professionals walk right into risks they didn’t see coming.

I’ve reviewed thousands of contracts over the past four decades, and the same red flags show up again and again. Here’s what to look out for—and how to fix them before they cost you time, money, or worse.


1. Are You Accepting Standard Cancellation Terms?

1. Are You Accepting Standard Cancellation Terms?

The default cancellation language in most hotel contracts is brutal: 100% liability, no credit, no flexibility.

Instead, ask:

  • Can we apply a percentage to a future event?

  • Realistic timeline for lower penalties?

  • Can damages be based on lost profit, not the full rate?

💡 Use our Cancellation Clause Builder to insert language that protects you while still being reasonable to the hotel.

2. Did You Forget to Address Force Majeure Gaps?

COVID taught us all that “acts of God” clauses don’t go far enough. If a clause only covers weather, war, and government shutdowns, you’re exposed.

Modern force majeure language should include:

  • Supply chain interruptions

  • Health crises or public health restrictions

  • Reduced attendance due to unforeseen travel changes

We include updated templates in all of our membership plans so you’re never relying on outdated terms.

3. Is the Language One-Sided?

3. Is the Language One-Sided?

Contracts written entirely by the hotel often say things like “Hotel reserves the right…” but rarely offer reciprocal rights to the client.

You need language that includes:

  • Client approval of changes (like construction or function space reallocation)

  • Notification periods

  • Shared remedies (not just penalties)

  • The Hotel's responsibility should they breach the agreement

4. Have You Checked for Hidden Fees?

Everything from special permit fees, to service charges, shadowing fees and outside vendor restrictions can sneak in. Ask for a detailed addendum listing:

  • Terms & Conditions

  • All fees services

  • Banquet Menus

  • Third-party vendor allowances

Even better—use our Red Flag Checklist to catch these before signing.

5. Are You Missing Clauses Entirely?

5. Are You Missing Clauses Entirely?

Planners often focus so much on the hotel’s language that they forget to insert their own.

Critical missing clauses I see:

  • Rebooking Rights

  • Mutual Indemnification

  • Non-Compete or Quiet Enjoyment

If they’re not there, you don’t have the leverage when you need it most.

Not Sure Where to Start?

Let us take it off your plate.

🧾 Try our Done-for-You Contract Review

📘 Explore the Complete Contract Toolkit

🎯 Book a Free Consultation and I’ll point you in the right direction

Hotel Contracting Hub is here to make sure you control the fine print—not the other way around.

Ginny Davito is a hotel contract negotiation expert with over 40 years of experience in the hospitality and events industry. She has worked with attorneys, event planners, and corporate procurement teams, reviewing and negotiating thousands of contracts for hotels, venues, and vendors worldwide. Seeing how hidden fees, vague clauses, and one-sided contracts cost planners time and money, she founded Hotel Contracting Hub and The Negotiation Hub to provide expert guidance, contract templates, and negotiation strategies that help event professionals secure better deals and protect their financial interests.

Ginny Davito

Ginny Davito is a hotel contract negotiation expert with over 40 years of experience in the hospitality and events industry. She has worked with attorneys, event planners, and corporate procurement teams, reviewing and negotiating thousands of contracts for hotels, venues, and vendors worldwide. Seeing how hidden fees, vague clauses, and one-sided contracts cost planners time and money, she founded Hotel Contracting Hub and The Negotiation Hub to provide expert guidance, contract templates, and negotiation strategies that help event professionals secure better deals and protect their financial interests.

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