In an article published in Hotel Executive on March 9, 2025, Chicago-based Partner Rob Schnitz discusses how the hospitality industry has seen lasting effects on hotel group sales agreements (GSAs) and analyzes how hotels can determine if their GSAs are still hurting.
“A review of legal cases involving pandemic related force majeure disputes revealed uneven and drawn-out results where the parties likely incurred significant legal fees,” Schnitz wrote. “Although the best contract language cannot guarantee the best result, clear and unambiguous language minimizes legal uncertainty and allows the business team to negotiate on business terms instead of relying on interpretation of unclear legal language.”
Schnitz explained the importance of a hotel evaluating their GSAs, he wrote, “The force majeure termination, cancellation and attrition clauses reflect the core legal provisions designed to offer a degree of financial certainty for a hotel in exchange for the certainty that the hotel has reserved space for a group to hold an event of a certain size on a specified date.”
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