What Clauses Should You Always Include in a Hotel Contract?

Every event planner has that one story—the contract that went sideways.

Maybe it was a sudden renovation, a weather disaster, or a surprise invoice after your group left. Whatever the scenario, I can guarantee one thing: it likely could have been avoided or softened with the right clause.

These aren’t just legal niceties. They’re real protections for your budget, timeline, and sanity. Let’s break down the top three I always recommend—including how and why to negotiate them.

1. What Is a “Frustration of Purpose” Clause and Why Do You Need It?

This clause is your fallback when an event loses its core reason for being—without being a true force majeure.

Example: You booked a city during a major parade, and that parade gets canceled. The city is still open. The hotel is still operating. But the purpose of your event is gone.

Without this clause, you’re still on the hook for fees. With it, you’ve got grounds for cancellation or renegotiation.

💡 Pro Tip: Use our free downloadable version of this clause inside the Contract Clause Library to add it to your next hotel RFP.

2. How Do You Protect Yourself from Attrition Penalties?

Attrition is the silent budget killer. Even experienced planners get tripped up here.

Hotels want a commitment. You want flexibility. The key is to:

• Ask for a rolling cut-off date instead of a flat one
  

• Negotiate your attrition rate to at least 75 -80% of the total room block
  

• Include a Credit for Rooms & Lowest Rate clause so you’re not penalized for rooms booked outside your block

And always ask for a pickup review—it lets you assess performance before penalties lock in.

3. Why Rebooking Rights Shouldn’t Be Optional

Cancellation is sometimes inevitable. But if you’re planning multiple events a year, you can negotiate a rebooking credit instead of a flat penalty.

We call it the Rebooking Rights Clause—and it can turn a loss into a future win.

It typically says: “If this event is canceled, the client will be allowed to apply up to X% of the cancellation fees to a future event booked within Y months.”

Hotels often accept this if you’re upfront about the long-term partnership.

What If the Hotel Pushes Back?

They might. But here’s what I tell all our Strategic and Elite members: If you don’t ask, you definitely don’t get.

Even just proposing these clauses shows you’re a professional who reads fine print—and that earns respect.

You’re not being difficult. You’re doing your job.

Want These Clauses Ready to Go?

No need to write them yourself.

✅ Get the Complete Contract Toolkit for editable templates

📂 Access our Clause Library for plug-and-play language

📞 Or book a Consultation Call and I’ll walk you through the negotiation

At Hotel Contracting Hub, we don’t just teach you to negotiate—we give you the words, the timing, and the confidence to do it right.