I tried to resist, but the snark potential was just too great for me not to post this.
Here’s the story:
Some of the comments on that story are pretty funny too.
I especially liked this one. A little mean-spirited, I know, but it made me giggle.
Hey, our Founding Fathers said nothing about paying bills, so you can’t make us!
If there’s a contract that was breeched it should be honored.
But it sounds like the Venetian may be blowing a bit of smoke. Normally reservations that far in advance don’t require full payment for the rooms in the event of a cancellation, especially given Vegas’s current vacancy rates, I can’t see them charging more than $350 a night for a room.
I can’t believe the lack of personal responsibility shown by the hotel. I mean, really, if they just let people walk out (virtually) without paying the bill what do they expect to happen?
-Joe
Normally, perhaps, but as you say, if there’s a contract that was breached it should be honored. As it happens, there was:
At best the only arguable thing is the interest.
I am guessing it is not just the rooms but the meetings spaces, etc, as well.
This seems to be the beginning of a trend. If you read that story and wondered how it ended, the Trumpster bailed 'em out. (yep, he basically paid them to speak at their rally)
I guess the Venetian will have to sue them, but I’m guessing that the particular organization that they contracted with doesn’t have the money. Part of doing business is performing credit reviews on your customers as well.
The last time a tea party was sent a bill for a supposed tax in Boston didn’t get paid either as I understand it.
I am not a Tea Partier, but I know that large hotel bookings usually require a 50% deposit (minimum) for late cancellations or pre-paid deposit for reservations on large bookings. If reservations aren’t cancelled in advance, the signatory is on the hook for the entire cost. I personally love this movement that touts government and personal responsibility! ;):dubious:
Just to be clear, the story you’re linking to involves Donald Trump, a different Tea Party group and a different unpaid hotel bill, “As you may know, the South Florida Tea Party has been trying to weasel its way out of paying the bill for a rally it held for Donald Trump in Boca Raton.” It has nothing to do with the story in the OP.
I hear they told the hotel that its bill exceeded their debt ceiling, so they’re just out of luck.
Meeting space usually comes free with such a large block of rooms.
Hotel reservations for large parties are always negotiated. It is quite possible, especially when you are dealing with a city with lots of vacancies, to reduce the guarantee and have a relatively low penalty for canceling early. That’s a whopping big penalty for really not that many room nights. My guess is that the nitwits who arranged this did not use a competent meeting planner, but assumed they were so smart they can do it themselves (typical of them, isn’t it?) and got walked over by the hotel.
The reason for penalties is that the hotel might have been able to book another convention into the space during that time, and gave up that revenue for these clowns.
So, Tea Partiers are boobs who are not nearly as smart as they think they are. Nothing new there.
Uh, yes, I’m aware of that. I was pointing out another TP group that seemed to have a problem paying what they owed. Why would I post links to the same story in the OP and say it seemed like a trend?
But here’s the thing… isn’t the deposit required up front? Are hotels that trusting that they assume parties are going to pay if they cancel?
Sorry. I was confused, and thought others might be as well.
That is surprising. Politicans and political organizations are often required to pay in full for everything up front since they have such a lousy reputation. They tend to have no real assets except contributions which will be spent or transferred quickly. This hotel may had a lot of empty space and didn’t mind taking the risk, or an employee is staying in Vegas, under the sand somewhere.
From this
it sounds like they got a $25,000.00 deposit just to make sure it wasn’t some prank, but trusted them for the rest (with a safety clause that specified a set cost for cancellation)
With over 1600 rooms reserved I’m sure they have to allow some leeway for waiting for attendees to sign up for events before the sponsors can pay out full deposits for the entire block of rooms.
Yes, I read that. But my BS monitor is still pinging a bit. Seems like there would be a LOT of similar defaults if this is S.O.P. in the hotel industry. I’m not ready to buy the hotel’s side of this story.
Mine as well. I have some experience with events requiring convention centers\hotels. With an event for more than a thousand :eek: rooms, it seems highly unlikely they would have settled for a measley 25K deposit.
Not quite. 1637 room nights.
The Register-Journal says the event was originally scheduled for July 14-18, so if check-in was on the 14th and checkout was on the 18th, that’s four nights per room, or about 410 rooms (though I don’t know why the total comes to 1637). If checkout was on the 19th, then that’s just ~327 rooms.
Still an awful lot of rooms, of course, but if it was 327 rooms that’s $76 deposit per room ($61 for 410), which doesn’t sound that unreasonable.