Can a hotel raise its guaranteed rate?

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Can a hotel raise its guaranteed rate?

I booked a room earlier this year. I received a confirmation receipted after completing a transaction on the website of the hotel. This receipt has a sentence stating that the price and dates are guaranteed. This week I received a new confirmation from the hotel with a higher rate. The same text about guaranteed is on this one as well. Can the hotel change the terms of the agreement that we previously entered into, raise the room rate.

Asked on December 29, 2010 under General Practice, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

No, if the guaranty was a firm one, without any caveats, limitations, or exceptions, they cannnot change the rate. The question then becomes whether it was such a firm, unqualified guaranty. Check their website (especially any "terms or conditions," such as the ones people usually click through without reading), their marketing materials, the fine print on any emails or other correspondence, etc. If there are limitations, such as only guaranteed for a certain period of time, or rates may change under certain circumstances, then the hotel may enforce those limitations and, if applicable, raise its rates; but on the other hand, if it was an unconditional guaranty, the hotel should then still be bound by itl.


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