GOP Convention wants bay area hotels to throw out old contracts and lower the rates

TAMPA - Normally, hotel operators across the Bay Area would be thrilled to have full bookings during a week that is usually fairly slow. The arrival of some 50,000 visitors for the Republican National Convention next summer practically guarantees it.

Instead many are angry.

About one hundred local hotels had already signed contracts to provide their rooms to the incoming Republicans but last week, the Republican National Committee on arrangements told many of them their rates were too high.

The Tradewinds Resort on St. Pete Beach was the only hotel that would comment on the demand that they lower their room rates.

"My first reaction was 'Why?'  I didn't understand what the reasoning behind the decision was," said Tradewinds President Keith Overton.

Overton says he followed the Republican National Committee guidelines when he agreed to reserve over 700 rooms for the GOP convention at a rate of $158 per night. And even though he has a signed contract, the arrangements committee wants him to lower his rate to $149 dollars a night.

"In our case, we took an average of what we had done over the last couple of years. We marked it up three person and we submitted it. I feel confident it was appropriate," said Overton.

According to one source, some higher-end hotels are being asked to knock $100 dollars off their nightly room rate.

But hotel operators are almost more angry at a marked-up fee the RNC booking agent wants to collect for expenses. The hotels earlier agreed to a flat $30 payment per reservation. Now booking agency "OnPeak" wants 10 percent of the entire bill, which would would at least triple the fee for most hotels.

"As far as I'm concerned, the contract has been executed. If other hotels feel compelled to negotiate that with them individually, that's certainly up to them, but in our case, I don't feel compelled to do that," said Overton.

Hotel managers are clearly concerned about picking a fight with the biggest customer they have had in years.  But some also expressed irritation over what they believe is an arbitrary decision that suggests they are trying to gouge customers.

James Davis, the spokesman for the RNC Committee on Adjustments said they will negotiate individually with hotel operators to arrive at a fair and reasonable rate for the GOP visitors.