What is the required renovation under Exhibit C for a Delta Hotels By Marriott franchise?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
to have the right to use driveways, drive aisles or sidewalks for pedestrian and vehicular ingress and egress, Franchisee agrees to (i) secure such easements (and the right to display signage approved by Franchisor directing traffic across the property that is subject to the easement) where indicated in the final Plans approved by Franchisor and (ii) maintain such easements and rights at all times during the Term. Franchisee also agrees to construct and maintain at all times during the Term the method of ingress and egress indicated in the final Plans, which will lead directly to the Hotel.
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- Existing Agreements. If the Hotel is subject to a license, membership, franchise, or management agreement (the "Existing Agreement") with another brand not affiliated with Franchisor ("Existing Brand"), Franchisee represents, warrants, and covenants that: (i) such Existing Agreement either expires by its own terms, gives Franchisee the right to terminate, or is subject to a mutual agreement between Franchisee and Existing Brand to terminate, in each case prior to the Opening Deadline, without any termination being a breach of Franchisee's contract with such Existing Brand, and
Franchisee will not terminate or attempt to terminate the Existing Agreement in any manner that would constitute a breach or default under such Existing Agreement; (ii) it will comply with the Existing Agreement, and there is no provision in the Existing Agreement that would prohibit or conflict with Franchisee's ability to enter into this Agreement and comply with its terms; and (iii) it will not use the System until (a) the Existing Agreement has terminated or expires, (b) it has satisfied all obligations of the Existing Agreement that are conditions to such termination or expiration, and (c) Franchisor has authorized such use in the letter referred to in Section 2.I of this Exhibit C. Any Claims of Existing Brand will be subject to Section 14, and any breach of this Section 8 is a default under Section 19.1.B of this Agreement.
EXHIBIT C CONVERSION
Franchisee acknowledges that the Hotel is to be renovated under the terms of this Exhibit C and Section 4.4:
1. Property Improvement Plan.
- A. Property Improvement Plan. Based on a review of the Hotel, the property improvement plan prepared by Franchisor attached to this Exhibit C as Attachment Three outlines the conversion renovation requirements for the Hotel to become a System Hotel (the "PIP"). All such requirements must be completed by the Opening Date, unless otherwise noted in the PIP with respect to a particular requirement. All renovations, furniture, fixtures and equipment will conform to the then-current System specifications at the time such work is completed.
- B. Material Change Review. If any material changes to the Hotel occur after the date stated in Item 19 of Exhibit A, then Franchisor may re-inspect the Hotel ("Material Change Review") and modify the PIP to address such material changes. Franchisee will complete the modified PIP, including any additional requirements, to Franchisor's satisfaction. Franchisee and its contractors will cooperate fully with any inspections Franchisor conducts under a Material Change Review.
2. Conversion Renovation of the Hotel.
- A. Construction Start Deadline. By the date stated in Item 13 of Exhibit A (the "Construction Start Deadline"), Franchisee will have: (i) obtained written financing commitments for the PIP if necessary; (ii) obtained building permits in accordance with the approved Plans; (iii) begun conversion renovation; and (iv) obtained Franchisor's consent to a Management Company as required under Section 8.1.A. Within 10 days after it has commenced the conversion renovation, Franchisee will notify Franchisor that it has satisfied the above conditions. If requested, Franchisee will deliver evidence that such conditions have been met.
- B. Opening Deadline. Franchisee will complete the conversion renovation and furnish the Hotel in accordance with the approved Plans, the Standards and the Marriott Agreements so that the Opening Date occurs by the date stated in Item 14 of Exhibit A (the "Opening Deadline").
C. Extensions.
- (i) Time is of the essence, but the Construction Start Deadline will be automatically extended by 30 days on a rolling basis, unless Franchisor provides at least 60 days' notice to Franchisee that such deadline will no longer be automatically extended. Any such automatic extension of the Construction Start Deadline will extend the Opening Deadline by the same amount of time; however, no such automatic extension will extend the term or duration of any Restricted Territory in Item 9 of Exhibit A.
- (ii) If Franchisee wishes to further extend such deadlines following Franchisor's notice in the preceding paragraph, or if Franchisee wishes to extend the Opening Deadline after conversion renovation of the Hotel has commenced, Franchisee will make a written request giving the reasons for the delay. If the delay is caused by a Force Majeure Event (excluding, for the avoidance of doubt, unavailability of financing), Franchisor will equitably extend such deadlines. If the delay is not caused by a Force Majeure Event, Franchisor may, in its sole discretion, extend such deadlines and require Franchisee to pay its then-current extension fee. The extension fee is nonrefundable unless
Franchisor declines to grant the requested extension. No extension under this Section 2.C.(ii) will be granted for more than six months.
- D. Permits and Certifications. Franchisee will obtain all permits and certifications required for lawful renovation and operation of the Hotel, including zoning, access, sign, building permits and fire requirements, and if requested, will certify that it has obtained all such permits and certifications.
- E.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott FDD, Exhibit C outlines the renovation requirements for both conversion and newly developed hotels to meet system standards. For a conversion, the franchisee must renovate the hotel according to the Property Improvement Plan (PIP) prepared by Delta Hotels By Marriott, detailed in Attachment Three of Exhibit C. These renovations must be completed by the Opening Date, with all furniture, fixtures, and equipment conforming to the current system specifications. Delta Hotels By Marriott may re-inspect the hotel and modify the PIP if any material changes occur after the date stated in Item 19 of Exhibit A, requiring the franchisee to complete the modified PIP to the company's satisfaction. The franchisee is responsible for obtaining financing commitments and building permits, beginning the conversion renovation, and securing Delta Hotels By Marriott's consent to a Management Company by the Construction Start Deadline, as specified in Item 13 of Exhibit A. The franchisee must complete the conversion renovation and furnish the hotel according to approved plans, standards, and Marriott Agreements to meet the Opening Deadline stated in Item 14 of Exhibit A. Delta Hotels By Marriott representatives may visit the job site to observe the work, and the franchisee must correct any deficiencies or discrepancies promptly. The hotel cannot be advertised or operated as a Delta Hotels By Marriott until the renovations are completed according to the PIP, Plans, Standards, and Marriott Agreements, as determined by Delta Hotels By Marriott. The franchisee may be required to provide an architect's certification that the hotel has been renovated according to the PIP and Plans, along with a certificate of occupancy. Additionally, the franchisee must deliver a certificate from a licensed architect, engineer, or recognized expert consultant on Accessibility Requirements, as detailed in Attachment Two of Exhibit C. The franchisee must also ensure all FF&E, Electronic Systems, and other items and equipment are installed and in working order, and that a general manager and department managers have completed Delta Hotels By Marriott's management training program. Furthermore, all amounts due to Delta Hotels By Marriott and its Affiliates must be paid, and the franchisee must comply with insurance requirements. Delta Hotels By Marriott must test and inspect the fire protection and life safety systems of the hotel to verify compliance with their standards. The franchisee must notify Delta Hotels By Marriott that the PIP has been completed and the hotel is ready to open as a System Hotel. Delta Hotels By Marriott must grant approval to open and operate the hotel as a System Hotel and establish the Opening Date in a letter agreement. If the letter agreement includes additional work, the franchisee must diligently complete it to maintain authorization to use the System and identify the hotel as a Delta Hotels By Marriott. Delta Hotels By Marriott may review any additional work, and the franchisee must ensure the hotel complies with all requirements following the review. Delta Hotels By Marriott may charge its then-current fee for site visits and inspections necessary to ensure compliance with additional work requirements. Delta Hotels By Marriott will use commercially reasonable efforts to inspect the hotel within 20 days after receiving notice that all requirements for opening the hotel as a System Hotel have been met. Delta Hotels By Marriott will provide an opening team to assist in the opening of the hotel and train the hotel employees.