Common use of Room Addition Fee Clause in Contracts

Room Addition Fee. If you add or construct additional Guest Rooms at the Hotel at any time after you sign this Agreement, you will pay us a nonrefundable fee equal to the prevailing per Guest Room initial fee charged to System hotels multiplied by the number of additional Guest Rooms ("Room Addition Fee"). You must pay the Room Addition Fee to us when you submit an application to add any Guest Rooms to the Hotel, and you must submit that application to us before you enter into any agreement to add any Guest Rooms to the Hotel. As a condition to our granting approval of such application, we may require you to modernize, rehabilitate or upgrade the Hotel, subject to Subparagraph 6.b. of this Agreement.