Starwood Preferred Guest - "Restricted Rate" has 200% no show penalty

I was looking at tonight's rates at the Aloft Chicago O'Hare and lowest rate is $91.08 ($102.92 all-in) and is shown as a "Restricted Rate". However it has the following cancellation policy. I hope this is not for real and is just another website error.

Bolding is mine.
The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be a 1 night penalty. An additional 100.00 percent will also be forfeited. There may be additional applicable charges and taxes. I also see this at the Sheraton Suites Chicago Elk Grove.

The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be a 1 night penalty. An additional 100.00 percent will also be forfeited. There may be additional applicable charges and taxes. I also see this at the Sheraton Suites Chicago Elk Grove.

I would like to see the property try to enforce that contract provision in court. Once the customer has paid for the service, it belongs to the customer to forfeit or consume. I cannot imagine a customer paying extra to not use the service.

I suspect it is a website error, but if SPG wishes to offer a room on those terms, and a customer agrees to those terms in exchange for a certain rate/reservation, what's the legal grounds for being able to say "never mind"?

I've written many contracts with cancellation clauses/penalties and have never worried that a contract entered into by two parties, reviewed by both legal counsels, would have enforcement problems. That's kind of the point of a legal contract.

I suspect it is a website error, but if SPG wishes to offer a room on those terms, and a customer agrees to those terms in exchange for a certain rate/reservation, what's the legal grounds for being able to say "never mind"?

I've written many contracts with cancellation clauses/penalties and have never worried that a contract entered into by two parties, reviewed by both legal counsels, would have enforcement problems. That's kind of the point of a legal contract.

Do you really have legal counsel review the terms of your hotel reservations?

Seems to me I've seen punitive cancellation policies from *wood properties before -- including charging rack rate if you cancel a reservation made with *points instead of you just forfeiting the points.

So I wouldn't assume it's an error.

Appears to be modified to the following (at least at the properties I looked at):

Restricted Rate (was called Book and Save)

The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be 100.00 percent. There may be additional applicable charges and taxes.

amazing how many web errors there are.

Appears to be modified to the following (at least at the properties I looked at):...I still get the same info as in the OP.

The following URL shows an example and will only be valid through Jun 21, 2009. After that date the policy is 1 day penalty rather than 2.
https://www.starwoodhotels.com/preferredguest/search/ratelist.html?corporateAccountNumber=&promotionCode=&lengthOfStay=1&wheelchairPreference=0&roomOccupancyTotal=001&requestedChainCode=AL&requestedAffiliationCode=AL&theBrand=SPG&amenityType=&ratePlanList=&AAAsetNum=298940&submitActionID=search&searchCode=&arrivalDate=2009-06-22&departureDate=2009-06-23&propertyID=3124&ciDate=06%2F22%2F2009&coDate=06%2F23%2F2009&numberOfRooms=01&numberOfAdults=01&roomBedCode=&ratePlanName=&iATANumber=
Click on "Terms & Details" to see the cancellation penalty.

I suspect it is a website error, but if SPG wishes to offer a room on those terms, and a customer agrees to those terms in exchange for a certain rate/reservation, what's the legal grounds for being able to say "never mind"?

I've written many contracts with cancellation clauses/penalties and have never worried that a contract entered into by two parties, reviewed by both legal counsels, would have enforcement problems. That's kind of the point of a legal contract.
Except that, of course, courts are reluctant to enforce liquidated damages if they're not a reasonable estimation of damages when the contract is originally made.

I don't know if it was the result of this thread or if someone in Starwood caught it. The rate is now shown as "Book Now And Save" with the cancellation policy below. However the wording is awkward - mentioning "the time for canceling without penalty has passed" and then "if you cancel after 4:00 PM hotel". The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be a 1 night penalty. If you cancel after 4:00 PM hotel time on 06/23/2009, the forfeiture amount will be 100.00 percent. There may be additional applicable charges and taxes.

I don't know if it was the result of this thread or if someone in Starwood caught it. The rate is now shown as "Book Now And Save" with the cancellation policy below. However the wording is awkward - mentioning "the time for canceling without penalty has passed" and then "if you cancel after 4:00 PM hotel". The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be a 1 night penalty. If you cancel after 4:00 PM hotel time on 06/23/2009, the forfeiture amount will be 100.00 percent. There may be additional applicable charges and taxes.

It makes wonderful sense if you consider that there are people booking for more than one night. If you cancel before 23.06.2009, 16.00 hours, you have to pay for one night, if you cancel after that deadline, you have to pay for the full stay.

I suspect it is a website error, but if SPG wishes to offer a room on those terms, and a customer agrees to those terms in exchange for a certain rate/reservation, what's the legal grounds for being able to say "never mind"?

I've written many contracts with cancellation clauses/penalties and have never worried that a contract entered into by two parties, reviewed by both legal counsels, would have enforcement problems. That's kind of the point of a legal contract.

You do not try to tell me that punitive damages for the cancellation of hotel rooms imposed on a consumer in the fineprint of a website are enforcable in the US, do you?

In this instance, if you are confused by the cancellation policy and you think it's possible you need to cancel, I would call SPG and ask them the full cancel policy.

Flying Lawyer, I see your point except the quote above is for a single night. If multiple nights are reserved it becomes a "Book Now And Save 20%" rate with a cancellation policy ofThe time for canceling without penalty has passed. If you cancel, the forfeiture amount will be 100.00 percent. There may be additional applicable charges and taxes.

It seems to be a work in progress and a single night booking is now back to the double penalty
The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be a 1 night penalty. An additional 100.00 percent will also be forfeited. There may be additional applicable charges and taxes.

I'm still waiting for the "The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be your first born male child."

Mike

I'm still waiting for the "The time for canceling without penalty has passed. If you cancel, the forfeiture amount will be your first born male child."

Mike

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Mike

Rather than putting percentage values in the cancellation policy, maybe they should put the actual amount. My recent free weekend night stay at the W Court had a forfeiture amount of $819 listed in the cancellation policy for ONE NIGHT if I didn't show up for my <free> night reservation.

My stay at the Westin Madrid was booked on points but if I cancel after the deadline or no-show, it's 525 euros!

I guess they want to make sure that I cancel ahead of time or actually show up.

My stay at the Westin Madrid was booked on points but if I cancel after the deadline or no-show, it's 525 euros!

I guess they want to make sure that I cancel ahead of time or actually show up.

Actually, it sounds like they don't want you to cancel ahead of time, as they would come up much more ahead if triggered the 525 Euros.

Cancellation policy for a 1 night stay on August 23 I have booked at a European Le Meridien, corporate (not pre-paid) rate :

If you cancel between 08/08/2009 and 6:00 PM hotel time on 08/21/2009, there will be no forfeiture amount. If you cancel after 6:00 PM hotel time on 08/21/2009, the forfeiture amount will be a 3 night stay. There may be additional applicable charges and taxes.

3 night penalty for a 1 night stay. Nasty. :td:

3 night penalty for a 1 night stay. Nasty. :td:

Whoa, that is just wrong.