What does 'limitation of liability' indicate for hotels?

'Limitation of liability' in the context of hotels refers specifically to the maximum amount a hotel will compensate guests for lost or damaged property. This legal concept protects hotels from being fully responsible for every instance of loss or damage that may occur during a guest's stay. It establishes a cap on the hotel's financial liability, often tied to the hotel's established policies or applicable laws.

For instance, many hotels inform guests that they are only liable for a certain amount unless guests take specific actions, such as using hotel safes for valuable items. This aids in managing risk and encourages guests to be prudent about safeguarding their personal belongings while simultaneously protecting the hotel from excessive financial burdens potentially caused by guest losses. Understanding this limitation helps guests make informed decisions about how to handle their valuables while staying at a hotel.