Common use of Capital Expenditures and Reserves Clause in Contracts

Capital Expenditures and Reserves. Lessee is required to submit to Lessor for Lessor's approval and inclusion in a capital expenditure reserve account, a capital expenditure budget for the next successive fiscal year during the term of the lease. The purpose of the capital expenditure reserve account is to keep the Leased Property competitive with any hotel or hotels similar in nature and type to the Leased Property in the area of the hotel and to keep the Leased Property in compliance with the applicable provisions of the franchise agreement. The capital expenditure budget includes, but is not limited to, items such as expenditures required, necessary and/or anticipated for the repair, replacement or refurbishment of carpet, soft goods, furniture, fixtures and equipment, structural and mechanical items, alterations to the Leased Property, reconstruction in the event of damage or destruction of the Leased Property, restoration pursuant to a condemnation or other taking of the Leased Property, other required or desired capital improvements of the Leased Property, and such other items characterized as capital expenditures under the Uniform System of Accounts for Hotels. No monies may be expended from the capital expenditure reserve account by ▇▇▇▇▇▇, without the prior written consent of Lessor, unless such expenditures were previously approved by lessor for inclusion in the capital expenditure budget. Lessor is required to fund on a monthly basis into the capital reserve account an amount not to exceed four percent (4%) of gross room revenues for the immediately preceding month. HOTEL RENOVATIONS: Lessee is responsible for the performance, at the sole cost and expense of ▇▇▇▇▇▇, of certain renovation work described in the lease. The renovation work is scheduled to be completed during the first three fiscal years of the lease and includes such items as painting of rooms and replacement of carpet, replacement of mattresses, televisions, drapes, bedspreads and furniture, and replacement of room cleaning items such as housekeeping carts and vacuum cleaners. The estimated cost of the renovation work pursuant to the lease averages approximately $70,000 per year.

Capital Expenditures and Reserves. Lessee is required to submit to Lessor for Lessor's approval and inclusion in a capital expenditure reserve account, a capital expenditure budget for the next successive fiscal year during the term of the lease. The purpose of the capital expenditure reserve account is to keep the Leased Property competitive with any hotel or hotels similar in nature and type to the Leased Property in the area of the hotel and to keep the Leased Property in compliance with the applicable provisions of the franchise agreement. The capital expenditure budget includes, but is not limited to, items such as expenditures required, necessary and/or anticipated for the repair, replacement or refurbishment of carpet, soft goods, furniture, fixtures and equipment, structural and mechanical items, alterations to the Leased Property, reconstruction in the event of damage or destruction of the Leased Property, restoration pursuant to a condemnation or other taking of the Leased Property, other required or desired capital improvements of the Leased Property, and such other items characterized as capital expenditures under the Uniform System of Accounts for Hotels. No monies may be expended from the capital expenditure reserve account by ▇▇▇▇▇▇, without the prior written consent of Lessor, unless such expenditures were previously approved by lessor for inclusion in the capital expenditure budget. Lessor is required to fund on a monthly basis into the capital reserve account an amount not to exceed four percent (4%) of gross room revenues for the immediately preceding month. HOTEL RENOVATIONS: Lessee is responsible for the performance, at the sole cost and expense of ▇▇▇▇▇▇, of certain renovation work described in the lease. The renovation work is scheduled to be completed during the first three fiscal years of the lease and includes such items as painting of rooms and replacement of carpet, replacement of mattresses, televisions, drapes, bedspreads and furniture, and replacement of room cleaning items such as housekeeping carts and vacuum cleaners. The estimated cost of the renovation work pursuant to the lease averages approximately $70,000 100,000 per year.