What is the definition of 'Hotel' in the context of The Standardx Comfort Letter?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
r (together with the other loan documents evidencing or securing such indebtedness, as amended, restated or otherwise modified from time to time, the "Loan Documents") and (2) that the loan proceeds will be used for the direct benefit of the Hotel. Franchisee and Lender have requested that Hyatt enter into this letter agreement (this "Comfort Letter"). Franchisee or Lender shall pay to Hyatt a fee in the amount of Two Thousand Five Hundred Dollars ($2,500) in connection with this Comfort Letter, prior to or simultaneous with its execution. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Franchise Agreement.
Hyatt, Franchisee, and Lender agree as follows:
- While Lender has a valid first mortgage on the Hotel during the term of the Franchise Agreement, Hyatt agrees to use commercially reasonable efforts to (a) give Lender thirty (30) days prior written notice of any voluntary surrender by Franchisee of the Franchise (to the extent that Hyatt is aware in advance of any such voluntary surrender) and (b) furnish Lender with copies of default notices sent by Hyatt to Franchisee. In the event of a default by Franchisee under the Franchise Agreement Hyatt shall allow Lender thi
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the term "Hotel" within the context of the Comfort Letter refers to the specific location at which the franchisee operates The Standardx hotel. The Comfort Letter included in the franchise agreement pertains to the hotel located at the address specified in the agreement.
This definition is crucial because the Comfort Letter outlines the agreements between Hyatt (The Standardx franchisor), the franchisee, and the lender providing financing for the hotel. The letter specifies that the loan obtained by the franchisee from the lender is secured by the hotel property and that the loan proceeds will directly benefit the hotel.
The Comfort Letter outlines conditions under which the lender can take control of the hotel, and it ensures that Hyatt has certain notifications and rights in such events. Therefore, understanding that "Hotel" refers to the specific franchised location is essential for all parties involved in the agreement, as it clarifies the scope and applicability of the Comfort Letter's provisions.