Protecting a Hotel Owner in a High-Value Group Booking for the 2028 Los Angeles Olympics

Situation

A hotel management company asked our firm to provide an expedited, targeted review of an amendment to a group booking contract for the exclusive use of all of the guest rooms and function spaces at the hotel for a 9-day period in conjunction with the 2028 Summer Olympic Games in Los Angeles, California.

The group signed the hotel’s standard form with minimal negotiation three months earlier but had not paid the 60% deposit due on signing. Instead, the group requested an amendment allowing it to pay the deposit over time, and to limit the portion of the fee which was non-refundable if it canceled or defaulted. Given the size of the booking and the relationship of the parties, the client was willing to accommodate this timing request. We were instructed to take a quick look at the amendment to ensure that the non-refundable portion of the deposit would remain non-refundable under all scenarios.

Approach

The amendment proved to be a comprehensive modification of the contract, introducing new group protections and risk shifting to the hotel.

At the client’s direction, we prioritized protecting the non-refundable portion of the deposit, while flagging provisions that materially increased the hotel’s cost and liability exposure so the client could make informed concessions without delaying execution.

Regarding the deposit, we identified a clause entitling the group to a refund of 100% of the prepaid deposits if the Olympic games were canceled, re-scheduled or relocated outside of Los Angeles. We revised the amendment to exclude the non-refundable amount from any such refund. We also noted that the group required a joinder from the hotel owner, guaranteeing the availability of funds in the amount of prepaid deposits, to protect the group’s ability to recoup their refundable pre-payments. Additionally, the amendment required the hotel to indemnify the group against claims and damages under a broad array of circumstances.

After a strategy call with our client and the hotel’s owner, the hotel agreed to proceed provided that certain key changes were made to the amendment to protect the non-refundable deposit.   

Result

The client appreciated our thoroughness while keeping pace with their fast-moving timeline. The hotel executed the amendment on schedule while preserving the agreed non-refundable deposit. Our review also surfaced owner-guarantee and indemnity provisions that materially shifted risk, enabling the client and owner to make informed concessions. Following the engagement, the owner requested our earlier legal involvement on future high-stakes group contracts to identify risk before terms harden.