Local negotiated rates, or LNRs for short, are competitive rates that hotels negotiate with organizations to encourage them to book rooms for their business travel needs at the same establishment, year after year.

It helps hotels get companies’ repeat business and improve their occupancy rates even off-season — and it enables organizations to get better rates than the ones available to the public.

Key takeaways

  • LNR, or local negotiated rates, are discounted rates that hotels negotiate with organizations to get more predictable bookings.
  • To make full use of LNR to boost their sales, hotel managers and operators need a strong LNR process and a comprehensive contract management system.

What are LNRs for hotels?

Local negotiated rates consist of special pricing that hotels have brokered with organizations for their corporate travel needs.

Often, hotels offer LNRs for events such as conferences, trade shows, and company-wide gatherings, and they’re lower than the rates available to regular travelers.

Such deals are a win-win situation for both sides: Hotels get to improve their occupancy rates and make their numbers more dependable (even in slower periods), and businesses get lower-than-market pricing for their corporate trips.

Local negotiated rates may or may not coexist with KNR or LRA rates.


KNR, short for key negotiated rate, is a corporate-wide negotiated room rate that hotel chains offer to companies, regardless of the specific location of each hotel.


LRA, short for last-room availability, is a contract between a company and a hotel, in which the hotel guarantees they’ll offer their rooms to the company at the previously negotiated rates, up to the last available room.

What are the benefits of LNR for hotels?

LNRs come with lots of benefits you don’t want to miss out on if you’re looking to keep your rooms booked and profitable.

Guaranteed business

In the hospitality industry (or in any industry, for that matter), getting a more steady stream of business is always one of the best ways to sustain a profitable operation over the long run.

Increased hotel occupancy rates

By securing larger bookings via LNRs, you can improve your average daily rate (ADR) and revenue per available room (revPAR) for the year.

Better revenue management

Bookings resulting from LNRs don’t come last-minute, which means that your revenue is more predictable.

A competitive edge

If you’re able to offer competitively negotiated rates to organizations and even government agencies, this helps you stand out in a crowded market.

Customer loyalty

Offering favorable rates to business clients helps you build strong relationships with them, which makes it more likely that they’ll return, year after year. 

How can hotels leverage LNR contracts to boost their sales?

So, how can you set up LNR pricing to attract and retain corporate clients and improve hotel sales?

With the right process and tools, of course.

A chart outlining the step-by-step process of negotiating and signing LNR contracts
With the right process, setting up LNR rates for your hotel (or hotel group) is easy

To make the most of LNR contracts, here’s how to set them up:

1. Identify potential clients

Clients who might want to take advantage of local negotiated rates include:

  • Local companies that often have visitors
  • Foreign companies that regularly do business with local organizations or come for specific events
  • Government agencies looking for stable, long-term accommodation contracts
  • Universities and colleges, especially during conferences and other events
  • Hospitals and medical institutions that need rooms for traveling nurses and other medical staff

2. Define offers based on client needs

Specify competitive rates and volume discounts based on the number of rooms or nights booked.

Consider adding extra services such as free breakfast, free wifi, taxi or shuttle services, conference room bookings, dry cleaning, early check-in, and more.

Think about the different room types your clients might need. 

3. Market your services

Next, it’s time to market your competitive pricing to potential clients, i.e., the ones you identified in the beginning.

Network at events (equipped with the right software tools to save time on paperwork), use online ads, or even pick up the phone to talk to local businesses.

There are a lot of things you can do to get plenty of warm leads!

4. Negotiate your rates and sign those deals

Let us quickly circle back to the basics: N in LNR is for “negotiated,” — so what you need to do next is to actually negotiate your rates with prospective clients: set hotel rates, negotiate timelines, offer discounts, and put this in writing to discuss it with businesses.

Plus, the best way to figure out exactly what they need and make customized offers is to ask them directly.

To negotiate and sign your LNR contracts successfully, utilize contract management software tailored to the needs of the hospitality industry.

PandaDoc is one such tailor-made solution. With our platform, you can:

  • Negotiate contracts with multiple stakeholders in real time
  • Collaborate with internal teams
  • Collect e-signatures easily
  • Store all your contracts securely in one place
  • Streamline invoicing and payment collection

Plus, you’ll impress your clients with spotless, on-brand documents that are a pleasure to read (and to sign!).

And, if you’re operating a hotel chain and looking for a way to manage large volumes of contracts, we’ve got you covered with CRM integrations, scalable pricing options, unlimited document uploads, and electronic signatures.

Brands like Hilton and Marriott already trust us.

5. Analyze performance

Make a point to regularly assess how profitable your LNR agreements are for your company. Adjust the terms and rates as necessary.

One of the key ways to measure performance is to ask your clients for feedback.

Did they receive what they were expecting at your hotel?

Is there something more you can do to make their lives easier? How likely are they to recommend you to their partners?

Get the most out of your LNR contracts with the right software

LNRs for hotels are an excellent way to drive demand, get new customers, and keep guest rooms occupied, even during slower periods.

Plus, this way, you’re not relying only on leisure travel as your main source of revenue.

The best way to simplify your LNR negotiation process and sign more deals is to use a dedicated contract management solution like PandaDoc.

Sign up for a free live demo to chat with one of our experts and see for yourself what document Nirvana feels like. 


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