What is a minimum spend in event venue contracts?
A minimum spend (or minimum revenue guarantee) is the lowest amount of money a venue agrees to accept for a booking. It is calculated as the total spend across accommodation, catering, room hire, and AV. If your event falls short, you pay the difference.
How is minimum spend calculated?
Venues typically calculate minimum spend as: expected bedroom revenue (rooms × rate × nights) + estimated F&B spend (delegates × DDR or catering estimate). The figure is negotiable and should reflect realistic demand, not a worst-case scenario.
Can you negotiate a minimum spend?
Yes — and you should. If your dates are off-peak or the venue is competing against others, use that leverage. Common negotiation tactics include reducing the minimum spend in exchange for a higher attrition threshold, or securing credit notes rather than cash penalties for shortfalls.
How does minimum spend differ from venue hire?
Venue hire is a fixed fee for room use regardless of how much you spend. Minimum spend is a total revenue target. Some venues charge hire plus a minimum spend; others waive hire if the minimum spend is met.