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

[Kathy Olson <kathy@thekrib.com>]

eek 19,000 prepaid or did i read that wrong...


On Tue, 3 Feb 2004, S. Hieber wrote:

> 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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