5 Questions Every Hotel Owner Should Ask Their ISP (Before Signing Anything)

Introduction

I’ve spent decades rescuing hotels from IT disasters, and believe me, I’ve seen it all-from keycard systems failing because of poor WiFi to franchise fines over outdated bandwidth. 

Picture this: A family checks into your hotel for a much-anticipated getaway, only to find the WiFi crawling at 2 Mbps. The teenager can’t stream Netflix, the parents miss important Zoom calls, and soon your front desk is bombarded with complaints. Worse yet, you’re locked into a three-year ISP contract that turns this nightmare into your everyday reality.

This isn’t just an inconvenience – it’s a revenue killer. Studies show that 72% of guests rank WiFi as their top amenity (Hospitality Technology, 2023). One bad review about slow internet can deter future bookings. 

After witnessing countless hotels suffer from underperforming internet services, I realized the root cause is simple: many hotel owners sign ISP contracts without asking the right questions.

Below, I’m sharing the five non-negotiable questions you need to ask your ISP to protect your business, avoid franchise penalties, and keep your guests coming back for more. 

Let’s dive in.

1. What’s the Service Level Agreement (SLA), and How Does It Protect My Business?

I learned the hard way that an SLA isn’t just technical jargon-it’s your insurance policy. Picture a sold-out New Year’s Eve where everything is going right until your router fails. You might have “24/7 support” on paper, but what happens if a technician takes 24 hours to show up?

• Uptime Guarantee: Demand a 99.9% uptime, especially during peak times. Imagine the cost: one hour of downtime during a busy weekend at a 100-room hotel charging $150 per night can easily lead to over $5,000 in guest refunds.
• Response Time: I once witnessed a hotel suffer because a router issue left guests locked out for 12 hours. The fix? A maximum 4-hour response time for critical outages.
• Penalties: If the ISP fails to meet their SLA targets, negotiate compensation tied directly to your average daily rate-say, a 10% credit of your monthly bill for every hour of downtime.

A detailed SLA is non-negotiable. And just as you verify your uptime, you must also ensure that your bandwidth is future-proofed…

2. Is the Bandwidth Scalable to Meet Future Demands?

Today’s guests demand much more than basic email access. With 4K streaming, VR gaming, and smart room devices, bandwidth requirements are skyrocketing. A contract that locks you into low bandwidth today can quickly become a liability, sparking reviews like, “Worst WiFi ever-I couldn’t even send an email!”

• Franchise Requirements: Major brands like Hilton mandate 250 Mbps per 100 rooms. If your ISP offers just 100 Mbps, you risk falling out of compliance before the end of 2025.  There mandated speeds often fall short for today’s usage with all the load on the network of many other systems.
• Scalability: Don’t be trapped with fixed speeds. Ask, “Can we upgrade our bandwidth mid-term without extra fees?”
• Calculate Your Needs: A simple formula I rely on is:
  Total Bandwidth = (Number of Devices) x 5 Mbps
  (For example, 200 devices need roughly 1,000 Mbps or 1 Gbps.)  Note most in-house guest counts reach 100 plus with each guest having 2 to 4 devices.

Switching to fiber-optic connections, which are 20 times faster than copper cables, might be the upgrade your hotel needs to stay ahead.  More importantly, fiber is more reliable.

3. What’s Included in the Installation and Setup Process?

A poor installation can create Wi-Fi dead zones and cripple your property management system (PMS), resulting in frustrated guests. I’ve seen it too many times-routers haphazardly placed in the lobby, thick stone walls rendering signals useless in courtyard rooms, and then the $8k bill for WiFi extenders.

Ask your ISP:

• Site Survey: “Will your engineers perform a thorough site survey to map our property’s layout?”
• Timeline: “Can you install the system overnight to avoid disrupting check-in?”
• Backup Plan: “Do you offer a backup circuit or worst case an LTE circuit during the installation?”

If they can’t commit to a detailed installation plan that suits your unique property needs, it’s a red flag.

4. Are You Using Commercial-Grade Equipment, or Am I Stuck with Consumer-Grade Gear?

In a hotel setting, quality matters. I’ve witnessed the fallout when consumer routers-those $99 models from Best Buy-are used in hotels. They might support a handful of devices, but for a 100-room hotel, they quickly become overwhelmed.

Let’s compare:

Make sure your equipment can support your PMS, VoIP systems, and IoT devices. A failure here could mean a freezing room in winter or a complete system collapse. Always ask for a detailed list of the equipment and verify that it’s built for commercial use.

5. What Happens If I Need to Cancel or Change My Contract?

ISP contracts can hide some nasty surprises-auto-renewal clauses and cancellation fees that can exceed $10k are more common than you think. Flexibility is key in this fast-changing digital landscape.

Here’s what you should negotiate:

• Auto-Renewal: Insist that the contract does not auto-renew.
• Cancellation Fees: Cap any cancellation fees at no more than 20% of the remaining contract value.
• Upgrade Flexibility: With ever-changing franchise standards (like Hyatt’s upcoming 2025 mandate for 100 Mbps per room), make sure you have the flexibility to upgrade your service when needed.

Scrutinize every line of the fine print. Your contract should work for you, not against you.

My Final Take

In my years in the industry, I’ve learned that a hotel’s internet isn’t just a utility-it’s the backbone of guest satisfaction, revenue, and compliance. By asking these five essential questions, you can steer clear of costly downtime, avoid steep franchise penalties, and keep those dreaded “Why is the WiFi so slow?” reviews at bay.

Implement these strategies, and you’re on your way to:

• Enjoying 5-star reviews with flawless streaming,
• Seeing repeat bookings because “we stay here for the WiFi,” and
• Maintaining full compliance with franchise standards.

Still unsure? 

Reach out for a free 15-minute ISP contract review. 

I’m here to help you get the best deal so that you can focus on what matters most-providing an exceptional guest experience.