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Working With Hotels - July 2008

Hotels have always been go-to sites for meetings and special events, but new builds and the revamped or expanded facilities of established properties are making them even more attractive to the corporate event planning community. Following are points to keep in mind when you’re considering using a hotel space for an upcoming event.

 

Diverse Options

Hotels provide a steady source of new venue possibilities, as they explore new ways to attract business in an increasingly competitive market. As brand-new properties come onto the scene, existing ones are upgrading, renovating and re-conceptualizing the use of their existing space to better address evolving market demands. New amenities from state-of-the-art business centers to wine-tasting bar/lounges, destination restaurants spearheaded by celebrity chefs, and luxurious pools and spas are becoming more and more popular as hotels try to attract business from a variety of sectors, from business travelers and tour groups to meeting and event planners. Trendy urban rooftop lounges—many with both indoor facilities and open-air terraces—have proliferated with more planned over the next couple of years. While in some regions like New York City approximately half of the new-builds offer outdoor space in the form of terraces or rooftop pools and lounges, other properties are turning their previously unused roofs into bars and banquet areas for both the general public and special event rentals.

                                                                            

 

Advantages of Hotels

Hotels specialize in one-stop shopping for meetings and special events, since meeting and banquet room facilities, food and beverage operations and staff are already at your service.

Advantages generally include multiple, flexible banquet areas, in-house food and beverage provisions with chairs, tables, linens and table service on hand, established coat-check areas and rest room facilities, plus staff that deals with groups on a daily basis. More and more, hotels seeking corporate event business have a dedicated team of event and meeting specialists on hand to help planners host their on-site events. They can assist in coordinating and executing a wide range of details from A/V services and IT needs to special menu requirements, décor, transportation, extra amenities, recreational options and entertainment.

                                                                        

Dealing With Challenges

Meeting and banquet space at hotels is usually linked to room sales, so unless you are booking a block of sleeping rooms as well as utilizing meeting or banquet space at the hotel, you might not be able to nail down the room you want just for an event until it is officially “released,” which is often 60 days in advance of your requested date.

Another challenge planners have encountered is changing hotel staff—the person they negotiated with to sign the contract originally has left the company before the event takes place. The replacement—or sometimes, unfortunately, serial replacements—may not be up to speed on the precise, agreed-upon arrangements.

Responding to that challenge during a panel discussion at the Agenda New York XPO 08, Larry Huttinger, CMP, of D. Lawrence Planners LLC, suggested keeping scrupulous written, documentable records of what has been agreed upon and keeping in regular contact with the hotel representative who is handling your business through written correspondence (including printed out emails, faxes, etc.) which you keep in a handy, dedicated folder or binder.

Another tactic Huttinger recommended was to be the sole point person in dealing with the hotel. Have your client go over his or her concerns with you and you be the liaison with any hotel personnel. Having more than one person addressing concerns with the banquet sales person at the property is a sure way to confuse the situation.

 

Rates

Unlike set rental fees at venues such as museums, for instance, hotel rates tend to be negotiable and subject to laws of supply and demand. Obviously, you will have less bargaining power during peak demand times. To get more bang for your buck, schedule an event at a time when fewer people want to book the space if possible.

Some hotels offer incentives in the form of time-sensitive specials or frequent-use loyalty programs to entice planners to use their facilities for meetings and events. Be sure to ask if any special discounts or incentive programs apply when you are investigating the various facilities for upcoming events.

                                                                              

Costs

When pricing an event at a hotel, you generally have to consider the cost categories of food and beverage, staff, room charges, and that catch-all line item called “extras.” F&B prices are generally based on head count and quoted in terms of costs per person.

For meetings, most likely you will have to pay a room fee and perhaps additional A/V charges, depending on the property and what kind of equipment and link-ups you need. Coffee service, refreshments, etc. are extra, but meeting packages are often available that spell out exactly what you will get, when, and for how long, and the charges are “bundled.”

Don’t forget to factor in gratuities, taxes, and any additional service charges, permit fees or insurance add-ons too. Ask in advance for a complete cost breakdown before you confirm. Pricing policies differ from one property to the next. Sometimes charges included in a quoted price at one hotel will be extra at another, so be sure to get the complete picture. What looks like a bargain may not be a bargain in the end.

                                                                         

 

The Space

You will need to have a pretty accurate head count in order to book the best space for your event. Often though, there may be some flexibility, since many hotel banquet areas have moveable walls to allow for smaller or larger groups, as well as multiple event areas. However, hotels often host several events at the same time, so additional space may not be available for you at the last minute. A good plan is to give the hotel representative you are working with the minimum head count you expect but choose a space you know is large enough to accommodate what you think will be the maximum number of guests who might attend. There will come a point, however, when you need to pin down as accurate a number as possible. (It should all be spelled out in the contract.)

Some questions you will need to answer include the following:

• Is there a room rental charge? If so, how much is it? Is it negotiable?  

• What is included in that fee? How long can you use the space? Does the time include set-up and breakdown?

• Is the room equipped with all the necessary A/V equipment or can it be brought in? When? By whom?

• Are there hotel unions you will be dealing with?

• Is dancing allowed? Does the room have a dance floor? What about space and electrical requirements for musicians?

• What is the condition of the room and appointments in the room? Is it clean? Does it smell of cooking odors or is it musty?

• What is the rest of the property like on the way to the room?

• How will seats be arranged? Tables?

• What kind of linen and table settings will be used? 

• How many chairs will be placed at each table? 

• Where are the bar, rest rooms, coat check, etc., in relation to the room?

• Are they adequate? Is service staff included? Do you need more attendants?

• Is there elevator service? 

• Is the space easy to get to?

• Will other groups be holding events near yours on the property? Will traffic flow be a problem?

                                                                                    

Food and Beverage

Today, hotel properties seeking to attract new business often offer many menu options to suit contemporary tastes. It’s also becoming more common for hotels to house destination bar/lounges and top-quality restaurants that aim to draw a steady clientele from the surrounding areas as well as hotel guests, so fine dining on the premises may be an option too. 

In terms of beverage service, hotels usually do not allow clients to bring in their own liquor for reasons relating to sales tax requirements and other considerations. If you have particular beverage requests—you are hosting a special wine tasting, for instance—arrangements may be made through the hotel in a variety of negotiable ways. The hotel may be able to purchase what you need through their own distributors, or if you are bringing in a special selection, the hotel may buy it and sell it back to you at cost plus a small percentage and perhaps additional corkage fee. Arrangements vary with the property.

When discussing the food and beverage program for an event, be specific about what is being served, and how and when it is going to be presented. Be sure to get a list of what the bar will stock for your event, and stipulate the specific brands and varieties of liquor, wines, beers, mixers and nonalcoholic beverages you want. Determine how costs will be assessed in advance.

Here are some additional points to address:

• Will there be butlered hors d’oeuvre or a buffet? 

• Specifically, what foods will be served and how much will be offered?

• Will the meal be presented buffet style, or will guests be served at the tables? 

• Will plates be prepared in the kitchen and then brought out or will individual portions be served to guests by waitstaff attending the tables? 

• Will guests have a choice of entree? 

• How many courses will be presented and how much time allotted between courses?

• What beverages will be served with the meal?

• Will there be open bar service before the meal? For how long? What type of bar?

• Will beverage costs be determined per person, per hour or by actual amount consumed? The latter is usually most economical.

 

Extras Add Up

Many hotel services and amenities are included in the fees, but the more “extras” you request the more you will likely be charged. Be specific about what you want in terms of flowers, table settings, decor and special considerations. If you do not want to use the standard hotel linens or table service, others can be specially ordered, but at extra cost. Check with the hotel staff about bringing in the florist, decorator, special-effects specialist or entertainment of your choice. House rules and regulations about what you can or cannot do will likely apply.

If you have more than the standard audio/visual requirements, ask your hotel representative about speaking directly with the A/V technicians employed by the property. Sometimes, additional production pros will be needed to execute what you want to do. And be sure to test-run all equipment in advance to make sure all is in working order for your all-important event.

Be specific about how much staff you require, as well. If you want more than the number generally provided, you will be charged additional fees.  Rest room attendants will most likely be extra. Inquire about coat-check facilities and if you want coat-check gratuities to be included in your bill or charged individually to the guests.

                                                                                            

Contracts, Cancellation Policies, and Payment

Read all contracts carefully to determine exactly what is covered in the costs. Make sure you account for taxes and gratuities and watch out for double tipping. (There’s no need to tip at the end of the event if gratuities are already included in the fee and you’ve paid them.) If you don’t understand what a charge is for, ask.

Pay attention to insurance requirements too and make sure you are covered in the event of an accident or damage to the property.

Also review cancellation policies. Find out what additional costs you will incur if the number of guests attending varies from the number you guaranteed in the contract. Check on how long in advance you have to guarantee the head count—sometimes a facility will hold you to the first number you stated when booking the space even if your final head count is much smaller. Others let you change the figure up to 48 hours in advance. Also, make sure that you know how long you can use the room and if there are overtime charges for the space or the staff after a specified amount of time.

Terms of payment vary from one hotel to the next and with the specific client. Often you are required to pay 50 percent upon signing the contract and the balance by the time of the event, although provisions are sometimes made for billing the balance after the event, within a prescribed period of time.