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Hotel Sues Law Firm Over Canceled Retreat

Here's a real-life practice question for 1Ls preparing for their contracts final:

As reported by The Am Law Daily, Akin Gump Strauss Hauer & Feld booked several rooms at the Hotel Del Coronado in San Diego for a partner retreat. However, after making the reservation, they realized that, with the economy as it is, it probably wouldn't be a good idea to spend all that money on a fancy get-away, so the firm cancelled the reservation. The hotel sued for breach of contract, claiming $385,950 in liquidated damages for all those rooms that had been set aside for the partners retreat.

Any thoughts on how this might play out?

From Legal Blog Watch