1. Hot Topics in Hospitality Law Lisa Sommer Devlin Devlin Law Firm

2. Who I am and What I do Tell me about you Planners? Hoteliers? Others?

3. Biggest issue Used to be rate protection Used to be negotiation of amounts due Now: Customer simply unable to pay

4. Is the economic downturn a Force Majeure? Short answer: NO Key elements of Force Majeure: –Unexpected event –Makes contract illegal or impossible Economic changes are not unexpected Don’t make it illegal or impossible

5. What about H1N1? Remember the two elements: Unexpected Makes contract illegal or impossible Most contracts contemplate that people may not come (Attrition) Not illegal or impossible unless quarantined Seasonal flu kills 35,00 annually

6. What about Bailouts and TARP? No government prohibition YET Laws require regulations to be adopted to prohibit UNREASONABLE spending Law does not clarify what is to happen to contracts already in place

7. So what to do? ASK for help; don’t DEMAND it. Tell the hotel immediately, don’t wait. Lead time is critical. Be prepared to return proportionate function space so the hotel can attempt to sell your inventory. Determine how much available inventory the hotel has prior to selling your rooms. Explore E solutions using opaque channels. Negotiate with hotel on any revenues you may be generating above those contracted to help reduce attrition exposure, i.e. catering. Make the convention bureau and national sales network aware of the available rooms.

8. Common Contracting Mistakes Using contract and addendum Failing to do proper amendments Failing to read and apply the contract!

9. Common Mistakes, continued “No Attrition” contracts Under blocking/Intentional overbooking Asking hotel to assume all risk BETTER: Limit attrition or have release dates Share risk of outside issues Shorter term bookings Consider no booking!