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Function Space

What to Include in Your Function Space Contract Clause

In this video, you’ll learn how to approach including a function space clause in your hotel contract. What should you be aware of? What is important to share with the hotel? Learn why some groups might be sensitive with their function space request.

Experts

Barbara Dunn (representing Groups) Partner at Barnes & Thornburg, LLP

Lisa Sommer Devlin (representing Hotels) Devlin Law Firm, P.C.

Overview

  • If the Group will host any meetings or events at the Hotel, the hotel contract should specify the function space to be used in a function space agenda. The agenda should include the date, time, room set, and room name for each function space area. The provision should also state what is/is not included in the function space and what (if any) rate will be charged for the function space.

Group Perspective

  • Groups should ensure the function space agenda is correct and includes the date, time, room set, and room name for each function space area.
  • The provision should also state what is/is not included in the function space and what (if any) rate will be charged for the function space. The hotel contract should state that the Hotel cannot reassign any function space without the Group’s prior written consent.
  • Function space is often offered on a complimentary basis based on the Group’s room revenue and/or food and beverage minimum revenue. If space is not listed as complimentary, rates for each space should be specified.
  • The hotel contract should provide that the Group will have “quiet enjoyment” for its function space – meaning no interruptions from noise, odors, dust, etc. If there is such interruption, the Hotel should be obligated to correct the problem immediately.
  • If the function space includes WiFi, the hotel contract should specify that service in terms of speed, usage, etc. as well as address what will happen if the WiFi fails.

Hotel Perspective

  • The more information that the group can provide to the hotel regarding its intended use of function space in the RFP or sourcing proposal the better the hotel will be able to determine appropriate space for the event.
  • Hotels may hold multiple events in the same space on the same day: breakfast for group A; lunch for group B; dinner for group C. If that presents a conflict or issue to the group, that needs to be addressed in the Schedule of Events.
  • Set up and tear down time is typically included in the time allotted in the Schedule of Events. If Group’s event has extensive set-up or tear down, it should ensure that adequate time is included.
  • If the group is willing to allow the hotel to substitute alternate space of appropriate size based on final guest counts or other considerations, which will allow the hotel to maximize the use of its space with other customers, the hotel may be willing to offer additional concessions for group’s agreement.
  • Hotels typically charge for the use of function space, but often offer reduced or waived fees based on other revenues that a group event will generate. The hotel may impose function space charges if the other minimum commitments are not met, because if hotel had known the group event was going to be smaller, it would have given the group smaller space and sold the remainder to another group.