What is the definition of 'Periodic Renovations' for a Delta Hotels By Marriott franchise?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
4.3 Periodic Renovations.
A. Replacement of FF&E. Franchisee will timely start and complete the periodic renovation of all Guestrooms and Public Facilities to Franchisor's satisfaction in accordance with Section 4.4 and the Standards, including replacing Soft Goods and Case Goods periodically as required by the Standards ("Periodic Renovations"). At the time of any replacement of FF&E, Franchisor may require Franchisee to upgrade the rest of the Hotel to conform to the Standards applicable to similarly situated System Hotels.
B. Reserve Account. Franchisee will fund the cost of all renovations at the Hotel. Franchisee will establish a reserve account at a financial institution (the "Reserve") so that funds are available to complete the Periodic Renovations.
-
- The Reserve will be used only for renovations of Guestrooms and Public Facilities including replacement of Soft Goods and Case Goods. The Reserve will not be used for repairs or replacements to the structure of the Hotel building or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems, which structure and systems will be maintained in good condition with other funds.
-
- Each month, Franchisee will transfer into the Reserve an amount equal to the percentage of Gross Revenues stated in Item 18 of Exhibit A applicable to such month. Such transfer will be made within 15 days after the end of each month.
-
- At the end of each year, any amounts remaining in the Reserve will remain in the Reserve, and will not decrease the amount required to be deposited in the Reserve.
-
Amounts required under Section 4.3.B.2 may be insufficient to maintain the Hotel in accordance with the Standards, and if so, Franchisee will provide additional funds to maintain the Hotel to the Standards.
- 4.4 Design Process. Franchisee will obtain the Design Criteria from Franchisor within 10 days of the Effective Date for the Initial Work, and in a timely manner for any Periodic Renovation.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, Periodic Renovations are defined as the timely commencement and completion of renovations to all guestrooms and public facilities to the satisfaction of Delta Hotels By Marriott. These renovations must align with Section 4.4 of the franchise agreement and the brand's standards. This includes the periodic replacement of soft goods and case goods as required by these standards.
Delta Hotels By Marriott may also require franchisees to upgrade the rest of the hotel to meet the standards applicable to similarly situated hotels within the Delta Hotels By Marriott system at the time of any FF&E (furniture, fixtures, and equipment) replacement. The franchisee is responsible for funding the cost of all renovations at the hotel, and must establish a reserve account to ensure funds are available for these Periodic Renovations.
The reserve account is specifically designated for renovations of guestrooms and public facilities, including the replacement of soft goods and case goods. It cannot be used for repairs or replacements to the hotel building's structure or its mechanical, electrical, heating, ventilating, air conditioning, plumbing, or vertical transportation systems, which must be maintained using other funds. Franchisees will obtain the Design Criteria from Delta Hotels By Marriott within 10 days of the Effective Date for the Initial Work, and in a timely manner for any Periodic Renovation.