Proposed Operating Plan Clause Samples

Proposed Operating Plan. Prior to the execution of this Agreement, Owner and Operator have agreed upon an operating budget and plan for the first Operating Year, and on or before each November 1 thereafter with respect to the Term, Operator shall prepare and deliver to Owner an operating budget and plan (including anticipated capital projects) (the “Operating Plan”) for the next Operating Year, prepared in accordance with Operator’s standard planning and budgeting requirements for Operated Brand Hotels. The proposed Operating Plan shall include the following items, which shall be included with respect to each month of the Operating Year to the extent indicated: (a) estimated results of operations (including estimated Gross Operating Revenue, Operating Expenses and Gross Operating Profit) (annual and monthly); (b) a description of proposed capital improvements to be made during the Operating Year and itemized estimated capital expenses therefore, together with a five-year projection of anticipated capital projects based upon available information; (c) a statement of projected cash flow, including a schedule of any anticipated requirements for funding by Owner (including estimates of total labor costs for both fixed and variable labor, estimates of the average daily rate and occupancy, and an estimate of Operating Fees and System Service Charges) (annual and monthly); (d) a listing of all salaried management positions and their anticipated salaries; (e) estimated costs for any incentive compensation plan and benefits packages (annual and monthly); (f) a marketing plan for the activities to be undertaken by Operator pursuant to Section 8.1, which plan shall include a description of the Hotel’s target markets, the Hotel’s relative position in those markets, the proposed room rate structures for each market segment, the current and future sales plan for the Hotel, the advertising and public relations plan for the Hotel, and the proposed staffing for the sales and marketing activities of the Hotel, which marketing plan also shall address, to the extent Operated by Operator, sales and marketing plans for, all food and beverage (including fine dining), retail and spa operations; (g) Operator’s projections of average daily room rates, occupancy level, and food and beverage costs and revenues as reflected in Operator’s estimates of Gross Operating Revenues and Operating Expenses; (h) estimated results of operations for food and beverage outlets to the extent not included under clause (a) ab...