For the purposes of room rate negotiation, an attorney I used to work with
had, in a past life, worked in site acquisition/development for a
hotel/motel chain operation. He told me that individual room variable costs
(laundry, maid service, etc.) ran, on average, only $7 per night.
Therefore, anything over $7 per room per night goes toward fixed costs
and/or profit. This was just a few years ago, but I would assume $8 to $9
would still be ballpark numbers.
Knowing that, an empty room becomes a marginally profitable room at $10 or
so. Depending on vacancy rates and a modicum of intelligence on the part of
the manager, good rates can be had for a lot less than advertised rates.
Whomever ends up doing negotiations for this deal would do well to keep
these numbers in mind. I don't know that you will get rooms at $15 or $20,
but a filled $30 room beats an empty $70 room.
Larry Daniels
79 MGB LE
72 Midget
60 Bugeye
"You only need two tools: WD-40 and Duct Tape. If it
doesn't move and should, use the WD-40. If it
shouldn't move and does, use the duct tape."
----- Original Message -----
From <b-evans at earthlink.net>
To: "Frank Clarici" <spritenut@comcast.net>
Cc: <Spridgets@autox.team.net>
Sent: Wednesday, January 25, 2006 9:20 PM
Subject: Re: Sprite 50th Anniversery
Frank Clarici wrote:
> Insurance costs, meeting room fees, banquet dinner, tee shirt,
> mailings, stamps, phone calls, and other "ways & means"
> stuff. BS fees associated with autocross timer rentals and/or
> parking lot rentals, rent a tent(s), Stuff like that.
OK. I see, said the blind man!
Suggestion: In the past I have negotiated with hotels (and even one
motel) to make them them the event hotel, headquarters, dinner site in
return for meeting space, chairs, tables, xerox, etc. And, of course,
make sure that the groups did not have to pay rack rates for their
rooms. The numbers ranged from 35 upwards. One of the keys to getting
these subventions is picking a time when the room demand is normally down.
Buster
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