Understanding fine points of contract critical when planning corporate event

BOULDER — No space for a big company meeting? No problem. Hotel meeting rooms fulfill the need, especially for meetings that require food service and accommodations for out-of-town attendees.

Pulling all these details together can seem overwhelming, but professional event organizers say the key is understanding the hotel’s room rental contract.

“You’ve got to read it,´ said Jean Atwood, event planner and owner of The Atwood Company in Boulder. “There are so many things in it that are important.”

Guest minimums and maximums are one of the biggest issues, because once you offer a number, it is usually difficult to change it.

If you overestimate, you may blow the budget for the event, or the hotel may not be able to comfortably accommodate your guests. Underestimating is also a problem.

“There are cancellation clauses,” Atwood said. “If an event cancels or downsizes, there is a point of no return, so you’re responsible for (up to) 75 percent, regardless of your ability to provide attendees. The hotel doesn’t care.”

The reason for the seeming indifference is that the hotel loses money every time it experiences a cancellation or group downsize.

“Our products, meeting space and hotel rooms are perishable,´ said Tracy Kirk, director of sales at the Hotel Boulderado. “Once that day has passed, the room cannot be rented out for that day. It doesn’t sit on a shelf like a VCR.”

An accurate headcount also helps the hotel staff plan with you.

“The number attending helps me know the appropriate room to put them in,´ said Carolyn Burke, catering manager at the Raintree Plaza Hotel in Longmont. A simple board meeting with box lunches, for example, requires less space than a meeting with a sit-down meal, cash bar and entertainment.

Obtaining an accurate count can be difficult. “So many times the event is not based on the actual (number of guests), but on, ‘I hope we have this many,’ ” Atwood said. “Especially if there’s no history for this event.”

Get a firm number of attendees as early as possible. The later the warning you give the hotel, the higher the estimated bill. Hidden charges also can make the tab swell.

“Taxes and service charges are the main extra charges,” Atwood said. “Make very sure that you know what (these amounts) are. Many meeting planners don’t ask that.”

Many hotels will automatically add the gratuity to the bill, and that also will be taxed. For a big-ticket meeting, this can add up quickly. Service charges help hotels recover the expense of time spent helping you plan, set up and clean up.

“It’s like shipping and handling,” Atwood said. “There are also large charges for food and beverages.”

Providing your own food can incur an extra fee. You should compare costs with the hotel’s own food service. Some hotels even offer a discount on the room or will give you an extra room for lunch if they do the cooking, according to Burke.

“The more food you have, the more the room rental will go down,” she said.

Other service fees include those for bartenders, extra tables and furniture, and, a surprise for many, tablecloths, according to Atwood.

If the event will include vendors, be prepared to pay “$25 to $50 per table per day extra for their tables,” Atwood said.

Audiovisual equipment such as a large screen, modem jacks and phone lines also will increase the cost because most hotels use outside A/V companies, Burke said.

The contract will stipulate exactly when you have the room.

“Some people think that if they book (a room) for Wednesday, Thursday and Friday, they get the evening, too,´ said Kirk. “We do a lot of evening events.

“(Those using the room during the day) cannot leave all their things there overnight unless we prearrange.”

To prevent these unpleasant surprises, read the contract carefully and ask for an itemized estimate before you sign it.

“It can be very clearly spelled out and be part of an addendum,” Atwood said.

Don’t feel you must agree to all the charges in the estimate. “You can negotiate,” Atwood said. “Hotels aren’t hard and fast.”

She recommends that you try for discounts on the charges for telephone lines, electricity, setup and tablecloths. Items like taxes and service charges are “rarely negotiable,” she added. “The first time you say, ‘I assumed,’ you’re dead in the water,” she said.

If you still have an unexpected charge on the bill, make sure it’s not in the contract, and then make your objection.

“Talk to the hotel event manager,” Atwood said. “They will have a relationship with you after planning this event, and will go to bat for you with their sales department.”

But don’t try to haggle every time.

“Do your homework,” Atwood said. “Know what you need and know you’ll be able to provide the attendees. The hotel wants you to have a nice event.”

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