For a mixed-use project, when is construction of the Caption By Hyatt hotel deemed to have begun?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, the start of construction for a new hotel has specific criteria. If the Caption By Hyatt hotel is part of a mixed-use project, construction is considered to have begun when the vertical construction or adaptation of the hotel portion of the building starts. However, if the project is not mixed-use, construction begins when the concrete is poured for the hotel's foundation or finished slab.

This distinction is important for franchisees because it sets a clear benchmark for meeting the construction timeline outlined in the franchise agreement. Franchisees must begin construction within twelve months of the effective date of the agreement. Failure to meet this deadline could result in penalties or termination of the agreement.

For prospective Caption By Hyatt franchisees, understanding this definition is crucial for project planning and scheduling. It ensures alignment with the franchisor's expectations and helps avoid potential disputes regarding the commencement of construction. Franchisees should carefully review the development schedule in Exhibit B-3 of the franchise agreement to fully understand their obligations and timelines.