Absurd: Hyatt Resort Demands Signing Contract For Compensation

It’s pretty standard for hotels to provide compensation (or “gestures of goodwill”) in the event that something significant goes wrong with a hotel stay. However, the way that one hotel in Mexico seems to be going about this is a bit ridiculous, if you ask me.

A Hyatt’s laughable compensation contract

An OMAAT reader had an awful stay at a Hyatt all-inclusive property in Mexico. There’s a lot that went wrong with the hotel stay, from a blackout on the first night (with no safety lights and no flashlights), to food poisoning. Sounds like a fun vacation, eh?

The guest reached out to the hotel in hopes of getting some compensation for what went wrong, which seems reasonable enough. However, he shared that hotel representatives have been belligerent in their communication, and have lied repeatedly.

Eventually, the property offered the guest 44,000 World of Hyatt points as compensation. However, this requires signing a contract, and also sending the hotel a passport copy. So, what does the contract say?

We the undersigned accept the offer of compensation as a good will, stated below as full and final settlement 44,000 Hyatt bonus points.

[Hotel name] has provided attention to my situation at my full prices and entire satisfaction. We expressly release and forever discharge [hotel name] their officer, directors, agents, representatives, employees, successors, assigns, affiliates and subsidiary corporations form any and all claims, demands and actions

Moreover, by accepting this compensation we the undersigned, expressively waive any present, past or future rights to register a complaint, or pursue legal action against the hotel, tour operator or credit card company.

I understand this is confidential and I am agreeing not to comment or involve in negative publicity against the hotel or any associated company.

NO ALTERATIONS TO THIS RELEASE WILL BE ACCEPTED

The hotel is demanding the guest sign a contract

Crikey, this is ridiculous…

The guest asks what I make of this contract from the hotel. I mean, where do I even begin?

First of all, this contract is a complete joke. It’s not coherent, and doesn’t even make sense. How can you can waive the rights to register a complaint in the past, as the contract suggests? And then you’re agreeing to not engage in any negative publicity against the hotel? So you’d be violating the contract if you wrote a TripAdvisor review about your experience?

I can understand if a hotel would want a legal contract for a major settlement where the hotel is compensating a guest tens or hundreds of thousands of dollars. But for 44,000 World of Hyatt points, which is roughly enough points for one night at a top Hyatt hotel, this is a bit of an overkill.

Personally, I wouldn’t sign this. What would I do instead? Well, I’d reach out to Hyatt consumer affairs, and get them involved. I can’t imagine that the approach the hotel is taking, forcing guests to sign a bizarre, wonky contract, is in line with the experience Hyatt wants to offer its guests. Hopefully Hyatt can have a bit of a pep talk with this property. At a minimum, maybe they could actually write a contract that makes even a little bit of sense?

I wouldn’t be comfortable signing this contract

Bottom line

A guest had a bad experience at a Hyatt all-inclusive property in Mexico. As is pretty standard when things go wrong, the hotel offered the person compensation. However, this requires signing a contract, which includes provisions like waiving the right to past complaints (huh?), and not engaging in any negative publicity about the hotel.

Personally I wouldn’t sign a contract like this, and would reach out to Hyatt corporate.

What do you make of this Hyatt compensation contract? Would you sign it?

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Hotel Consultant Guest

Having been in this situation before on the hotel side I can tell you it's likely from a CYA situation. Without knowing the full details, I can say this request has only been made when there was concern about a lawsuit from the guest more than a reputation protection.

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Chris Guest

This reminds me of The White Lotus, Season 1

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Matt Guest

Every time I have reached out to Hyatt corporate support to resolve a matter in the past 5 years at least I've been referred back to a hotel employee. If @lucky reached out to them they might do something but if the average person reached out they'd do absolutely nothing. I wouldn't sign this and now I'd plaster it all over the place. Not just my bad experience but how the hotel responded to my attempts to be made whole. 44k points aren't worth signing this and are totally worth all the negative publicity I'd offer

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ScottS Member

This might be a Mexico thing. We traveled to Cancun back in May. We had an issue with our room where the aircon wasn't working properly. Before they would give us an alternate room or "upgrade", they had me sign a "waiver" form that basically said I wouldn't slander them on social media platforms or leave a negative review anywhere. We didn't end up taking the upgrade, so I'm guessing what I signed was null and void.

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Marc Cassina Guest

When publishing something like this it’s important to mention the name of the property. I can’t tell from your article whether or not you know the name of the hotel and with held it, or the guest didn’t provide that information to you. Regardless, by not providing this information it rises to a level of hearsay that makes the reader question whether any of this is true.

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