What is the Springhill Suites By Marriott Franchisor entitled to receive in the event of condemnation?

According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, in the event that any portion of the hotel is taken by eminent domain, condemnation, compulsory acquisition, or similar proceeding by any governmental authority, Springhill Suites By Marriott is entitled to receive a fair and reasonable portion of any condemnation award. The hotel owner is obligated to promptly notify Springhill Suites By Marriott of any such notice and will be responsible for restoring and reopening the hotel as required by Section 21.1 of the Franchise Agreement.

This provision ensures that Springhill Suites By Marriott is compensated for the loss of the hotel's contribution to the franchise system if the property is taken over by a governmental entity. The specific amount or method for determining what constitutes a "fair and reasonable portion" is not detailed in this section, but it is governed by Section 21.1 of the Franchise Agreement, which would likely consider factors such as the impact on Springhill Suites By Marriott's brand, lost revenue, and the remaining term of the franchise agreement.

Prospective franchisees should carefully review Section 21.1 of the Franchise Agreement to fully understand how the condemnation award will be divided and what factors will be considered in determining Springhill Suites By Marriott's share. It is also important to understand the obligations for restoring and reopening the hotel, as this could involve significant costs and potential disputes over the scope and timing of the restoration work.