Ever had the experience of researching a hotel online and having it look somewhat different when you actually arrive? What happens if that property was being used for a planned meeting or event? Either way, it can be very problematic and begs the importance of doing site visits. However, what if everything did check out initially, but you happened to learn that the management of the hotel changed overnight -- locks changed...new name posted. That's what happened recently to the Waikiki Edition Hotel in Hawaii. Originally managed by Marriott Hotels, the Waikiki owners felt Marriott didn't deliver in making the brand successful, which resulted in underperformance.So what's one to do? If you had a conference planned there with the understanding of the management structure, it seems your group could simply cancel the meeting, right? Not necessarily. As in our posting last week No vacancy...due to earthquake, it raised the discussion of the importance of negotiating hotel contract language to protect against a natural disaster damaging a hotel. In the case of change in management, your group may not be able to automatically cancel or move your meeting due to being unsure of the new managers. And there might even be some who may not think it's all that important, but it is.
That's why this situation is another area for negotiated contract language for protection. This could be under a header of "Rights of Termination." It is entirely acceptable to include language that the meeting or event could be canceled if there's a change in management. For instance, if you planned a conference at the Ritz Carlton or another high end brand, you expect and anticipate a certain level of service, right? If overnight, another management company took over that was more along the lines of a "motel" brand, then you most likely will receive a different level of service. Therefore, you should be mindful of including language addressing management, ownership or brand affiliation into your agreements.
As it turns out, Marriott did end up winning back operation of the Waikiki Edition. Good for them. If you'd like more information about negotiating hotel agreements, feel free to contact us.


