[AGA SC] Sheraton's Counter Proposal -- First In depth review and Reaction

["S. Hieber" <shieber@yahoo.com>]

After much work by Rick and Ghazanfar reviewing and
negotiating with hotels, Sheraton offered us a deal a few
weeks ago that looked very promising. At the Board's
request, GWAPA responded with a counterproposal structured
much along the lines of the Dallas deal.

A couple of days ago, Sheraton responded with a new
document. Once again, they faxed the document instead of
providing a computer-editable file, making comparison and
mark-up unnecessarily difficult. But we can't expect
everyone to have a computer and a word processor these
days. Anyway, I have gone over the two Sheraton documents,
the original and the more recent, line by line and these
are the diffs:

They have included language to provide the convention rate
on guest rooms after the Oct 15 cut-off date, but only if
they have not rented them to someone else. In the original,
the rate was not guaranteed for any bookings after the
cutoff date.

They have qualified the language banning non-hotel
food/beverage to being in compliance with State board of
Health certification requirements.

The changed the language re the "Awards Dinner" to be $35,
inclusive of tax and service. In the original, the price
would only be guaranteed 3 months prior to event. [Hey, we
won one!]

They have added very odd language: "The Hotel's obligation
to perform will not be subject to events beyond its
reasonable control (such as strikes, governmental controls,
or Acts of God).? Anyone know what that means? It is either
a declaration of omnipotence on the Hotel's part or, more
likely, meant as a disclaimer.

The added language that we will pay any remaining charges
on Sunday Nov 14. This means any new costs generated
*during* the convention -- all other costs must be prepaid 
with a $500 advance upon signing, and in 3-month
installments but all paid by 3 days before the event --
this includes meeting room rentals, banquet ($1,750 & lunch
guarantee (?), & the room night guarantee too (the way I
read it). The room night guarantee is a minimum of 80% or
224 roomnights = $19,040 minimum for the guest rooms
regardless of how many we need).


They changed the cancellation language by drastically in
their favor by increasing the deadline dates. For example,
in the Sheraton's new proposal, we are on the hook for 100%
of the room nights if we cancel 45 days before the event.
In the original version, it was 15 days.

We are on the hook for 50% for up to 135 days prior -- in
the original, it was 60 days.  

Technically, the contract does not require Sheraton to
promise to have the block of rooms available; it only says
that Sheraton will reserve them. Can hotel reservations be
like airline reservations?

Holy __)*&)&(*)(*^%$%#$)(*Q_)#$$&*_$%!!!!!  I think I want
a contract attorney before I sign anything with this
outfit. If all the hotels in that part of the country are
this unreasonable, maybe we should starting thinking about
KOA :-\.

Okay, I've calmed down a bit. I can continue now.

Other than those things mentioned above, it looks to be the
same as the original proposal.

If cancellation, or less than 280 roomnights, seem so
unlikely that we want to gamble against them occuring, then
this is not such a bad deal, overall. However, I think the
gamble would be that GWAPA and AGA will not be become
liable for debts exceeding total uncommitted assets.

If anyone can read this diff, let me know. I lack the
omnipotence of the Sheraton.

sh

=====
S. Hieber

-  -   -   -   -   -   -   -
Amano Returns
to the AGA Annual Convention
Nov 2004 -- Baltimore

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