If I decide to hold an event in Montreal or Toronto is it legal for me to purchase somewhere around 1000 hotel rooms and then make the people that are buying the tickets to the event stay at one of the rooms I have booked. And can I charge whatever I want to charge for the rooms or is that considered scalping.
To simplify lets say the event price is $ 50.00 and I add to that one night in a hotel at a cost of $ 300.00 - the hotel is only costing me $ 110.00 - is this just considered profit or is it classified as scalping since I will only sell the ticket to the event to people who pay for the room as well.

Scalping is the illegal reselling of tickets at a price higher than the face value. What you are doing is coming to a business arrangement with a hotel to buy a block of rooms and resell them. The hotel doesn't care what price you sell (if they do it will be stipulated in the agreement). But the buyers may see the posted rack rate and get suspicious if their rate is higher than that. You are basically bundling an event admission to an accommodation. It is up to the buyers to judge whether they are getting a good deal or they will seek alternate methods to see the event.

Hello Curious:

I don't know about the laws in the great North, but here in the US, scalping has a particular meaning. Buying something low and selling it high isn't scalping. It's capitalism. I don't believe it would be illegal to sell a room for more than you paid for it. Certainly the hotel couldn't complain.

I also presume that you intend to make a profit on the $50 ticket too. Why don't you think that's scalping?

Frankly, I have the same problem with TICKET scalping too. Somebody might think it shouldn't be done (probably the team owners or some other vested interest), but I see no harm at all in it. In fact, having bought scalped tickets at several events, I think it's a GREAT service.

Before I actually did it, though, I would see if the hotel had a problem with it.

excon