Rate Protection Clause
What is a rate protection clause in a hotel contract?
A hotel contract provision that keeps the group's contracted rate from being undercut by the hotel's own public pricing — often written as a "best available rate" guarantee, promising the group rate stays at or below the lowest rate the hotel offers the public for the same dates. When a rate check finds the hotel selling rooms below the contracted rate, a rate-protection clause is the leverage to push back: its exact wording can be quoted to the hotel in a rebuttal. Not every contract includes one, which is why it is worth confirming during negotiation and noting plainly when it is absent.
Related Terms
Appears in these guides
- How to Read a Hotel Room Block Contract
A clause-by-clause guide to hotel room block contract terms: attrition, cutoff dates, cancellation, comp ratio, rate protection, and walk clauses.
Stop tracking rate protection clause by hand
Blocks extracts rate protection clause from your contracts, tracks it alongside every deadline and room night, and proposes the next step for you to review — so the busy work is handled, and nothing changes until you confirm.