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Diamondrock Hospitality Company (DRH)
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DRH » Topics » Franchise Agreements

These excerpts taken from the DRH 10-K filed Feb 27, 2009.
Our Franchise Agreements
 
The following table sets forth the terms of the hotel franchise agreements for our two franchised hotels:
 
             
    Date of
 		  Initial
 		   
    Agreement   Term(1)  
Franchise Fee
 
Vail Marriott Mountain Resort & Spa
  6/2005   16 years   6% of gross room sales plus 3% of gross food and beverage sales
Atlanta Westin North at Perimeter
  5/2006   20 years   7% of gross room sales plus 2% of food and beverage sales(2)
 
 
(1) There are no renewal options under either franchise agreement.
 
(2) The franchise fee was equal to 2% of gross room and food and beverage sales for fiscal year 2006, 3% of gross room sales and 2% of gross food and beverage sales for fiscal year 2007, 4% of gross room sales and 2% of gross food and beverage sales for 2008. The franchise fee will increase to 7% of gross room sales and 2% of gross food and beverage sales thereafter.
 
We recorded $2.8 million, $2.7 million and $2.2 million of franchise fees during the years ended December 31, 2008, 2007 and 2006, respectively.
 
Our Franchise Agreements
 
The following table sets forth the terms of the hotel franchise agreements for our two franchised hotels:
 
             
    Date of
 		  Initial
 		   
    Agreement   Term(1)  
Franchise Fee
 
Vail Marriott Mountain Resort & Spa
  6/2005   16 years   6% of gross room sales plus 3% of gross food and beverage sales
Atlanta Westin North at Perimeter
  5/2006   20 years   7% of gross room sales plus 2% of food and beverage sales(2)
 
 
(1) There are no renewal options under either franchise agreement.
 
(2) The franchise fee was equal to 2% of gross room and food and beverage sales for fiscal year 2006, 3% of gross room sales and 2% of gross food and beverage sales for fiscal year 2007, 4% of gross room sales and 2% of gross food and beverage sales for 2008. The franchise fee will increase to 7% of gross room sales and 2% of gross food and beverage sales thereafter.
 
We recorded $2.8 million, $2.7 million and $2.2 million of franchise fees during the years ended December 31, 2008, 2007 and 2006, respectively.
 
Our
Franchise Agreements


 



The following table sets forth the terms of the hotel franchise
agreements for our two franchised hotels:


 





















































             

 

 

Date of



 

Initial



 

 

 

 

Agreement

 

Term(1)

 


Franchise Fee

 


Vail Marriott Mountain Resort & Spa


 

6/2005

 

16 years

 

6% of gross room sales plus 3% of gross food and beverage sales


Atlanta Westin North at Perimeter


 

5/2006

 

20 years

 

7% of gross room sales plus 2% of food and beverage sales(2)






 




 




























(1)
There are no renewal options under either franchise agreement.
 

(2)
The franchise fee was equal to 2% of gross room and food and
beverage sales for fiscal year 2006, 3% of gross room sales and
2% of gross food and beverage sales for fiscal year 2007, 4% of
gross room sales and 2% of gross food and beverage sales for
2008. The franchise fee will increase to 7% of gross room sales
and 2% of gross food and beverage sales thereafter.


 



We recorded $2.8 million, $2.7 million and
$2.2 million of franchise fees during the years ended
December 31, 2008, 2007 and 2006, respectively.


 




Our
Franchise Agreements


 



The following table sets forth the terms of the hotel franchise
agreements for our two franchised hotels:


 





















































             

 

 

Date of



 

Initial



 

 

 

 

Agreement

 

Term(1)

 


Franchise Fee

 


Vail Marriott Mountain Resort & Spa


 

6/2005

 

16 years

 

6% of gross room sales plus 3% of gross food and beverage sales


Atlanta Westin North at Perimeter


 

5/2006

 

20 years

 

7% of gross room sales plus 2% of food and beverage sales(2)






 




 




























(1)
There are no renewal options under either franchise agreement.
 

(2)
The franchise fee was equal to 2% of gross room and food and
beverage sales for fiscal year 2006, 3% of gross room sales and
2% of gross food and beverage sales for fiscal year 2007, 4% of
gross room sales and 2% of gross food and beverage sales for
2008. The franchise fee will increase to 7% of gross room sales
and 2% of gross food and beverage sales thereafter.


 



We recorded $2.8 million, $2.7 million and
$2.2 million of franchise fees during the years ended
December 31, 2008, 2007 and 2006, respectively.


 




Franchise Agreements
 
The following table sets forth the terms of the Company’s franchise agreements for its two franchised hotels:
 
                     
    Date of
 		    Initial
 		     
    Agreement     Term(1)    
Franchise Fee
 
Vail Marriott Mountain Resort & Spa
    6/2005       16 years     6% of gross room sales plus 3% of gross food and beverage sales
Atlanta Westin North at Perimeter
    5/2006       20 years     7% of gross room sales plus 2% of food and beverage sales(2)
 
 
(1) There are no renewal options under either franchise agreement.
 
(2) The franchise fee was equal to 2% of gross room and food and beverage sales for fiscal year 2006, 3% of gross room sales and 2% of gross food and beverage sales for fiscal year 2007, 4% of gross room sales and 2% of gross food and beverage sales for 2008. The franchise fee increases to 7% of gross room sales and 2% of gross food and beverage sales thereafter.
 
We recorded $2.8 million, $2.7 million and $2.2 million of franchise fees during the years ended December 31, 2008, 2007 and 2006, respectively.
 
14.   Commitments and Contingencies
 
Franchise Agreements
 
The following table sets forth the terms of the Company’s franchise agreements for its two franchised hotels:
 
                     
    Date of
 		    Initial
 		     
    Agreement     Term(1)    
Franchise Fee
 
Vail Marriott Mountain Resort & Spa
    6/2005       16 years     6% of gross room sales plus 3% of gross food and beverage sales
Atlanta Westin North at Perimeter
    5/2006       20 years     7% of gross room sales plus 2% of food and beverage sales(2)
 
 
(1) There are no renewal options under either franchise agreement.
 
(2) The franchise fee was equal to 2% of gross room and food and beverage sales for fiscal year 2006, 3% of gross room sales and 2% of gross food and beverage sales for fiscal year 2007, 4% of gross room sales and 2% of gross food and beverage sales for 2008. The franchise fee increases to 7% of gross room sales and 2% of gross food and beverage sales thereafter.
 
We recorded $2.8 million, $2.7 million and $2.2 million of franchise fees during the years ended December 31, 2008, 2007 and 2006, respectively.
 
14.   Commitments and Contingencies
 
Franchise
Agreements


 



The following table sets forth the terms of the Company’s
franchise agreements for its two franchised hotels:


 





































































                     

 

 

Date of



 

 

Initial



 

 

 

 

 

Agreement

 

 

Term(1)

 

 


Franchise Fee

 


Vail Marriott Mountain Resort & Spa


 

 

6/2005

 

 

 

16 years

 

 

6% of gross room sales plus 3% of gross food and beverage sales


Atlanta Westin North at Perimeter


 

 

5/2006

 

 

 

20 years

 

 

7% of gross room sales plus 2% of food and beverage sales(2)






 




 




























(1)
There are no renewal options under either franchise agreement.
 

(2)
The franchise fee was equal to 2% of gross room and food and
beverage sales for fiscal year 2006, 3% of gross room sales and
2% of gross food and beverage sales for fiscal year 2007, 4% of
gross room sales and 2% of gross food and beverage sales for
2008. The franchise fee increases to 7% of gross room sales and
2% of gross food and beverage sales thereafter.


 



We recorded $2.8 million, $2.7 million and
$2.2 million of franchise fees during the years ended
December 31, 2008, 2007 and 2006, respectively.


 















14.  
Commitments
and Contingencies


 




Franchise
Agreements


 



The following table sets forth the terms of the Company’s
franchise agreements for its two franchised hotels:


 





































































                     

 

 

Date of



 

 

Initial



 

 

 

 

 

Agreement

 

 

Term(1)

 

 


Franchise Fee

 


Vail Marriott Mountain Resort & Spa


 

 

6/2005

 

 

 

16 years

 

 

6% of gross room sales plus 3% of gross food and beverage sales


Atlanta Westin North at Perimeter


 

 

5/2006

 

 

 

20 years

 

 

7% of gross room sales plus 2% of food and beverage sales(2)






 




 




























(1)
There are no renewal options under either franchise agreement.
 

(2)
The franchise fee was equal to 2% of gross room and food and
beverage sales for fiscal year 2006, 3% of gross room sales and
2% of gross food and beverage sales for fiscal year 2007, 4% of
gross room sales and 2% of gross food and beverage sales for
2008. The franchise fee increases to 7% of gross room sales and
2% of gross food and beverage sales thereafter.


 



We recorded $2.8 million, $2.7 million and
$2.2 million of franchise fees during the years ended
December 31, 2008, 2007 and 2006, respectively.


 















14.  
Commitments
and Contingencies


 




These excerpts taken from the DRH 10-K filed Feb 29, 2008.

Franchise Agreements

        The following table sets forth the terms of the Company's franchise agreements for its two franchised hotels:

 
   Date of
Agreement
   Initial
Term(1)
   Franchise Fee
Vail Marriott Mountain Resort & Spa   6/2005   16 years   6% of gross room sales plus 3% of gross food and beverage sales

Atlanta Westin North at Perimeter
 
5/2006
 
20 years
 
7% of gross room plus 2% of food and beverage sales(2)
(1)
There are no renewal options under either franchise agreement.
(2)
The franchise fee is equal to 2% of gross room and food and beverage sales for fiscal year 2006, 3% of gross room sales and 2% of gross food and beverage sales for fiscal year 2007, 4% of gross room sales and 2% of gross food and beverage sales for 2008 and 7% of gross room sales and 2% of gross food and beverage sales thereafter.

F-30

DIAMONDROCK HOSPITALITY COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

December 31, 2007 and 2006

Franchise Agreements



        The following table sets forth the terms of the Company's franchise agreements for its two franchised hotels:
































 
 Date of

Agreement
 Initial

Term(1)
 Franchise Fee
Vail Marriott Mountain Resort & Spa 6/2005 16 years 6% of gross room sales plus 3% of gross food and beverage sales


Atlanta Westin North at Perimeter
 

5/2006
 

20 years
 

7% of gross room plus 2% of food and beverage sales(2)





(1)
There
are no renewal options under either franchise agreement.
(2)
The
franchise fee is equal to 2% of gross room and food and beverage sales for fiscal year 2006, 3% of gross room sales and 2% of gross food and beverage sales for fiscal year 2007,
4% of gross room sales and 2% of gross food and beverage sales for 2008 and 7% of gross room sales and 2% of gross food and beverage sales thereafter.

F-30







DIAMONDROCK HOSPITALITY COMPANY



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)



December 31, 2007 and 2006



EXCERPTS ON THIS PAGE:

10-K (8 sections)
Feb 27, 2009
10-K (2 sections)
Feb 29, 2008

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