Which positions are required to attend Brand & Service Training at Delta Hotels By Marriott?

FINANCING

Except as described below, generally we do not offer direct or indirect financing for franchised Delta hotels or guarantee any of your financing, loans, or other obligations. However, from time to time, under very limited circumstances and at our sole discretion, we may offer for certain hotels credit support in the form of a contingent guaranty of a portion of a loan provided by a third-party lender, or we may make a mezzanine loan. In determining whether to offer you credit support or make a mezzanine loan, we will consider, among other factors: (i) market penetration opportunities; (ii) the size and location of your hotel; (iii) the economic and financial environment; (iv) the cost to you to complete the development or conversion of the hotel; (v) whether our offer of credit or financial support would aid in the successful development or conversion of the hotel; (vi) whether you are willing to commit to playing an active role in growing the system; and (vii) whether you meet our then-current criteria.

Because we generally do not offer loan guaranties, if we do offer to make a contingent guaranty of a loan provided to you by a third-party lender, the terms and conditions of such guaranty may vary, such as the amount of the guaranty (for example, a percentage of the principal balance of the loan or a percentage of the hotel development costs), your repayment obligations, the guaranty fee, interest, fees, costs, penalties, security interests, default provisions, and requirements for a personal guaranty. You may be required to sign certain documents in connection with the loan guaranty, such as a Credit Enhancement Commitment Letter, Reimbursement Agreement, Equity Pledge, and Guaranty. Because the terms of financing arrangements, guaranties, and related documents vary, we do not have standard form documents but have included certain sample financing agreements in Exhibit Q for informational purposes only. These documents are samples, and the final documents may vary considerably depending upon which lender you select, the terms of the loan, and other lender requirements.

Because we generally do not make mezzanine loans and they are subject to the unique financial terms related to your hotel, we cannot determine in advance the key terms of any such loan we may choose to make, such as the amount, the annual percentage rate, the term of the loan, the number and amount of the payments, the type of security required for the loan, personal guaranty requirements, and default provisions. We may sell or assign any interest we have in any promissory note you execute in our favor or any loan we may advance to you. We do not have sample mezzanine loan documents. Those documents, including the intercreditor agreement between your primary lender and us, will be determined at the time of loan origination.

New Development Incentive. We offer a new development incentive program to franchisees of certain Delta Hotels. To be eligible to participate in the program, each of the following conditions must be satisfied: (1) the project must be for the development of a new-to-system Delta Hotel that is not a conversion of a Company Brand Hotel; (2) the application for the project must be approved by our Hotel Development Committee on or after March 31, 2025 and a franchise agreement must be executed by March 30, 2026; and (3) the construction or conversion of the hotel must commence within 15 months of the date of approval and the hotel must be open as a Delta Hotel within 15 months of the date of such commencement, unless we approve otherwise. If the project satisfies the eligibility criteria stated above, the franchise fees will be reduced to 4% for the term of the franchise agreement (excluding any term extensions or renewals).

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Source: Item 10 — FINANCING (FDD pages 82–101)