Hotel Accused of Canceling Conference for NBA Finals Business

Less than 48 hours before attendees were scheduled to arrive, a Texas nonprofit alleges its longtime conference hotel backed out of a contract so it could capitalize on demand tied to the NBA Finals. While the lawsuit has since settled, the dispute highlights a question planners should ask before signing any hotel contract: What happens if the hotel decides it no longer wants your business?

The Texas Federal Tax Institute (TFTI) filed claims for breach of contract and tortious interference against Signia by Hilton La Cantera Resort & Spa, seeking more than $1 million in damages. According to the lawsuit, the hotel backed out of hosting the group’s June 3-5 conference as the NBA Finals brought the New York Knicks to San Antonio, driving demand for hotel rooms across the city. 

The story was first reported by Bloomberg.

TFTI, a Dallas-based tax education nonprofit, had contracted with the 496-room resort to host its annual conference June 3–5. The conference, which typically draws more than 250 attendees, had been held at La Cantera for years, dating back at least to 2018. Just a month before the cancellation, TFTI had publicly touted its partnership with the resort on LinkedIn.

TFTI sought a temporary restraining order, arguing the NBA Finals did not qualify as a force majeure event under the contract,  a threshold that, if accepted by the court, would have meant the hotel had no legal basis to walk away from the agreement. 

Before the court ruled on the request, the parties settled. Terms were not disclosed. Hilton declined to discuss the allegations but said it worked closely with TFTI to resolve the matter.

Because the case settled before a ruling, the court never weighed in on whether the hotel's actions were permissible under the contract. That leaves planners with a familiar reality: Protection depends largely on the language negotiated before problems arise.

The nonprofit ultimately relocated its event to the Hilton Palacio del Rio in downtown San Antonio. Most hotel contracts include force majeure language to excuse performance in the event of acts of God, natural disasters, or events beyond either party's control. Whether a major sporting event qualifies as force majeure is precisely the question at the center of the dispute.

Contract experts say the larger issue isn't whether this particular dispute was justified, but whether planners have adequate protections if a hotel decides not to honor an agreement.

"This is exactly why contract language matters," said Mark Billing, VP of global accounts for HPN Global. "Hotels routinely ask groups to commit to attrition, cancellation damages, and performance obligations. That commitment has to go both ways. If a hotel can simply walk away because a more profitable opportunity appears, then every meeting organizer should be re-evaluating the protections, remedies, and relocation language in their agreements."

The Missing Clause in Many Hotel Contracts 

Only about one percent of the contracts Elizabeth Caragay Watts-Russell, CEO of SiteSelectionStrategist LLC, receives include a cancellation by hotel clause. "I am always the one plugging in the clause," she said. "It's no accident. Hotels are in it for themselves."

Watts-Russell said most hotels accept the clause verbatim or with modification. "I have rarely had it declined."

The clause language matters as much as its presence. Watts-Russell said any agreement must define a specific remedy symmetrically: if the group faces penalties for cancellation or attrition, the hotel must face equivalent consequences for failing to perform. "A defined remedy has to be agreed on," she said. Relocation provisions should also address comparability and logistics costs — finding a replacement venue at equivalent quality, on short notice, is rarely simple or free.

Attorney Joshua Grimes of Grimes Law Offices said most hotel-drafted clauses either have an inadequate clause for these circumstances, such as merely a return of the group's deposits, or no clause at all. 

“With no clause, the group is not without remedies available under the law. But it's best to have a well-thought-out and adequate provision in the contract for this contingency,” said Grimes. 

Grimes said the central question is determining what would make the group whole. 

“Planners should consider all of the costs to move the event to a new location, thinking broadly. Damages may include additional costs for the new venue, increased room rates, higher F&B costs, cancellation costs, additional transportation costs for attendees, costs to notify attendees of changes, site visit expenses, and legal fees for negotiating new contracts,” said Grimes. “Many groups also include a specified amount to compensate the group for damage to its reputation and loss of goodwill among attendees. The contract should include a specific amount for at least part of these damages.”

TFTI had booked the property for years, but when circumstances changed, that history offered little protection. The La Cantera dispute is a reminder that long-standing relationships are no substitute for contractual protections. The contract, not the relationship, ultimately determines what happens when a hotel walks away.