Page 105 - Valor Hospitality Partners - Casa Anfa Project

SUGGESTED MANAGEMENT AGREEMENT TERMS

• Incentive Management Fee (creative and meaningful incentive structures will be considered a plus)

• Valor are open to any structures which are seen as a win-win between ownership, stakeholders and Valor themselves for
creating the value

• Generally Valor would operate on an AGOP basis with targets set to ensure delivery and absolute performance

• Key Money Contribution

• Valor will negotiate with all brands on behalf of the ownership to secure the best commercial terms

• Definition of AGOP (adjusted gross operating profit for calculating the IMF)

• AGOP will be GOP less Management Fees

• FF&E Reservation Provisions

• All provisions will be brand driven

• System/Mandatory Operational Expenses

• All system fees have been reflected in the proforma and a detailed breakdown of system fees by brand can be provided

during brand negotiations should Valor be successful in securing this exciting assignment