Common use of Third-Party Operated Areas Clause in Contracts

Third-Party Operated Areas. Owner and Manager acknowledge that certain areas of the Hotel, such as the spa, fitness center or restaurant may be operated by third parties (the “Third-Party Managers”) under a lease, operating agreement, franchise agreement or similar agreement. Any areas of the Hotel operated by Third-Party Managers are referred to in this Agreement as “Third-Party Operated Areas”. The operation of any Third-Party Operated Areas by a Third-Party Manager, and the selection of a Third-Party Manager for such Third-Party Operated Areas, shall be subject to approval of both Owner and Manager; provided, that Manager, at its option, shall have the right to control the process of selecting any Third-Party Managers, including the right to conduct a request for proposals to select the Third-Party Managers, which selection shall be subject to the approval by Owner. Any lease, operating agreement, franchise agreement or similar agreement with a Third-Party Manager shall: (i) be consistent with the terms of this Agreement; (ii) allow Manager to operate the Hotel in accordance with the Hotel Standard and the terms of this Agreement; (iii) require the Third-Party Managers to operate the Third-Party Operated Areas in accordance with the Hotel Standard and all other terms of this Agreement; and (iv) be subject to the review and prior written approval of both Owner and Manager. All rents, fees and other amounts received by or on behalf of Owner from the operation of Third-Party Operated Areas shall be included in Gross Operating Revenue.