5 Hidden Fees in Hotel Contracts Every Event Planner Should Know

The Real Cost of Hotel Contracts

Every event planner has been there: you sign what looks like a great hotel contract, only to discover a mountain of hidden fees on the final invoice. After analyzing hundreds of hotel agreements through our contract review tool, we have identified the five most common hidden fees that catch planners off guard.

1. Resort Fees and Destination Fees

Many hotels now add a mandatory "resort fee" or "destination fee" ranging from $25 to $75 per room per night. This fee is often buried in the fine print and can add thousands to your event budget.

What to look for: Check for any per-room, per-night surcharges that are separate from the quoted room rate.

2. Service Charges vs. Gratuities

Hotels often charge a "service charge" of 22-25% on all food and beverage. Unlike gratuities, service charges typically go to the hotel, not the staff.

Key difference:

• Gratuity: Goes directly to service staff
• Service charge: Revenue for the hotel (may or may not be distributed)

3. Audio-Visual Equipment Markups

Hotel AV packages are notorious for being 3-5x more expensive than outside vendors. A simple projector and screen setup that costs $200 from an external vendor could be $800+ through the hotel.

Pro tip: Always negotiate the right to bring in outside AV vendors, even if the hotel charges a small "rigging fee."

4. Attrition Penalties

Attrition clauses require you to fill a minimum percentage of your room block (usually 80-90%). Fall short, and you pay for the empty rooms anyway.

Negotiation strategy:

• Push for 70% attrition minimum
• Request a review date 30 days before the event
• Negotiate the ability to reduce your block without penalty

5. Early Departure Fees

If attendees check out before their reserved dates, the hotel may charge an early departure fee of $50-$150 per room.

Protection: Include language that caps early departure fees or eliminates them for medical emergencies.

How to Protect Yourself

1. Read every line of the contract before signing
2. Use a contract review tool like EventNation Contract Review to identify gotchas
3. Negotiate upfront � most fees are negotiable
4. Get everything in writing � verbal promises mean nothing
5. Track your costs against the original quote

The best time to negotiate is before you sign. The worst time is after the invoice arrives.

Ready to review your next hotel contract? Try our free Contract Review tool and catch hidden fees before they catch you.