Force Majeure Clauses in Hotel Contracts After COVID

COVID-19 permanently changed how event planners think about force majeure. Pre-2020, the clause was boilerplate that nobody read. Post-2020, it is one of the most carefully negotiated sections in any hotel event contract. Here is how to get it right.

What Force Majeure Actually Covers

Force majeure (“superior force” in French) releases both parties from contractual obligations when an extraordinary, unforeseeable event prevents performance. Classic examples: war, natural disasters, terrorism, riots, government actions. Post-COVID additions: pandemics, public health orders, government travel bans.

What Pre-2020 Clauses Usually Missed

• Epidemics and pandemics (often explicitly excluded)
• Government advisories short of full bans
• Supply chain disruption
• Cyber-attacks
• Border closures that do not amount to “war”

Every contract signed after 2020 should have explicit pandemic and public-health-order language. If the hotel’s template doesn’t, add it.

Three Types of Force Majeure Outcomes

• Termination without penalty: Event cancelled, both parties walk away; deposits refunded
• Reschedule with credit: Event postponed; deposits applied to new date
• Partial relief: Event proceeds modified (reduced attendance, virtual component); pricing adjusted proportionally

A good clause covers all three, with clear triggers for each.

Key Language to Include

Strong force majeure clauses have five elements:

• Non-exhaustive list of qualifying events (“including but not limited to”)
• Explicit mention of epidemics, pandemics, and public health orders
• Government advisories treated as qualifying, not just outright bans
• Notification timeframe (typically 7-14 days from triggering event)
• Deposit refund or credit protocol

What Hotels Will Resist

Hotels naturally prefer narrow force majeure. Common resistance points:

• “Epidemic” sometimes excluded unless a WHO-declared pandemic — push back
• Government advisories treated as non-qualifying unless full ban — push back
• Unilateral hotel discretion over whether force majeure applies — never accept
• Deposits forfeit even on force majeure cancellation — never accept

Insurance Alongside Force Majeure

Force majeure in the contract and event cancellation insurance are complementary, not overlapping. Force majeure says “we do not owe each other money if X happens.” Insurance says “a third party will reimburse you for costs if X happens.” For events over EUR 100,000 total spend, both are worth having.