Common use of Room Block Attrition Clause in Contracts

Room Block Attrition. This Contract is based in part on the Group’s commitment to use at least XXXX total room nights at the Hotel (the "Guest Room Minimum"). If the actual use of room nights by the Group (whether during the Conference or on any pre or post adjoining dates) falls below the Guest Room Minimum, room attrition charges will be assessed. The room attrition charges shall be calculated by multiplying (i) the amount of this shortfall in room nights, times (ii) 80% of the Confirmed Room Rate for Standard Rooms, exclusive of taxes. (80% of the single/double Confirmed Room Rate for Standard Rooms equals the room attrition charge for each room night of the shortfall.) Such room attrition charges, plus any applicable taxes, shall be added to, and payable as part of, the Master Account. All room nights used by the Group's attendees (including staff) at the Hotel over the Conference Dates and any pre or post adjoining dates will be counted toward the Guest Room Minimum on a cumulative basis (regardless of the rate paid, the method of reservation, or when the reservation was made) for the purposes of determining the applicable room attrition charges (if any) payable to DRD pursuant hereto. These include, but are not limited to: all such persons who, for whatever reason, do not receive the applicable Confirmed Room Rates shown below (e.g. late reservations, corporate rates, government rates, etc.), and all persons “walked.” In addition, if DRD retains the room deposit from any of the Group's individual attendees as a cancellation fee for any no-show, then, DRD will apply that deposit to the first night of that individual's stay and, for the purposes only of determining the room attrition charges, that room night will be counted as actually occupied. In no event, however, will the total room attrition charges (excluding any applicable taxes) exceed the amount determined by multiplying (A) the total number of unused room nights in the Room Block that the Hotel determines are not resold (after all other available rooms at the Hotel have been sold), times (B) 80% of the Confirmed Room Rate for Standard Rooms. For the purposes hereof, unused Government Rooms in the Room Block will be deemed to have been resold before unused Standard Rooms in the Room Block. DRD and Group intend to liquidate the damages (as provided above) if the Group fails to meet the Guest Room Minimum set forth in this Section 6.1. Therefore, Group and DRD agree that (a) the above is a reasonable method to determine the Hotel’s damage if the Guest Room Minimum is not met and (b) the liquidated damages set forth in this Section 6.1 do not constitute a penalty.