Fill and Sign the Lease of Hotel Form

Lease of Hotel Agreement made on the _________________ (date) , between ________________________ (Name of Lessor) , a corporation organized and existing under the laws of the state of ______________, with its principal office located at ______________________________________________________________________ (street address, city, state, zip code) , referred to herein as Lessor , and _______________________ (Name of Lessee) , a corporation organized and existing under the laws of the state of ________________, with its principal office located at ______________________________________________________________________ (street address, city, state, zip code) , referred to herein as Lessee . Whereas, Lessor is the sole owner of a hotel building and desires to lease it to a suitable Lessee; and Whereas, Lessee desires to lease the hotel for operation as a business venture; and Whereas, the parties desire to enter into a lease agreement defining their respective rights, duties, and liabilities relating to the premises; Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Description of Premises Lessor Leases to Lessee the premises currently known as _________________ _____________ (name of hotel) , located at __________________________________ _____________________________________ (street address, city, state, zip code) , and more fully described in Exhibit A , which is attached to and made a part of this Lease Agreement, and all furniture, furnishings, and fixtures described in Exhibit B , which also is attached to and made a part of this Lease Agreement. Said premises and all furniture, furnishings, and fixtures are hereinafter referred to as Premises . 2. Rental and Term A. The Lease term shall be _____ (number) years, commencing on ________________ (date) , and terminating at __________ (time) on _________________ (date) . B. Lessee shall pay to Lessor as basic rent $__________ annually, payable at the rate of $__________ per month. C. In addition to the basic rent specified above, Lessee shall pay to Lessor a percentage rent equal to _____% of the gross annual income from operation of the hotel in excess of $______________. D. The monthly basic rental shall be paid by Lessee on the first day of each month for the month immediately following. The percentage rental payments shall be made by Lessee within _____ (number) days after the end of each calendar quarter for the period immediately preceding. 3. Prepaid Rent Prior to Lessee's taking possession of the Premises, Lessee shall pay to Lessor $__________, representing the basic rental payment for the last ______ (number) months of the Lease term, which payment is made in advance to secure the faithful performance of this Lease Agreement. That amount shall be forfeited to Lessor in case of default on the part of Lessee in carrying out the terms and conditions of this Lease Agreement. 4. Effect of Default A. If Lessee defaults in the payment of rent or any part of the rent within ______ (number) days after due notice of the amount of rent owing has been mailed by Lessor to Lessee, or in the performance of any of the terms and conditions of this Lease Agreement, then this Lease Agreement may be declared forfeited by Lessor at the option of Lessor. Lessor may reenter without notice or demand, and Lessee shall be liable for all loss or damage resulting from any default or violation of this Lease Agreement. B. Any forfeiture or reentry under this Section shall not release Lessee from the obligation to make the minimum monthly payments reserved as rental, at the times and in the manner set forth. Lessor may relet the Premises as agent of Lessee, applying the proceeds first to the payment of any expenses incurred in reletting, then to the payment of rents as they become due, and finally towards the fulfillment of other terms and conditions of this Lease Agreement, with the balance, if any, to be paid over to Lessee. Lessee shall pay to Lessor any loss or difference of rent for the remainder of the term, if Lessor shall recover possession of the Premises and is unable to relet them under the terms provided in this Lease Agreement. C. Lessor may elect to terminate this Lease Agreement on default by Lessor. If so, Lessor shall give Lessee written notice of such default, and Lessee shall have ______ (number) days within which to correct the default, or Lessee shall have ______ (number) days within which to commence corrective action on any default that cannot be corrected within the _____ (number) -day period. If Lessee has failed to complete the corrective action within the time specified, or has failed to complete the action within a reasonable time, as the case may be, Lessor shall give written notice to Lessee of the intention to terminate this Lease Agreement within ______ (number) days after such failure. 5. Maintenance and Repair A. Lessee shall keep the interior of the hotel and its improvements, including window coverings, in good repair and condition. Lessee shall maintain the Premises in a sanitary condition as required by (citation of state statute) ____________________________ and shall not keep, permit, or maintain any nuisance in or on the Premises. B. Lessor shall maintain and repair the exterior portions of the hotel, including the roof and parking facilities. 6. Utilities Lessee shall pay for all electricity, gas, and water used or consumed by Lessee or Lessee's guests or employees on the Premises and shall insure that sufficient service is available for all residents and tenants of the hotel. 7. Taxes Lessor shall pay all real property taxes and assessments levied against the demised Premises, and Lessee shall pay all personal property taxes, sales taxes, and business and license fees. 8. Insurance A. Lessee shall obtain and maintain a policy of liability insurance and a policy of fire insurance with extended coverage provisions applicable to the Premises. The policy shall protect Lessor against loss of personal property and furnishings on the Premises, and damage to the structure of the hotel, and from liability incurred because of injury or property damage to the hotel or suffered by a hotel guest. B. The liability policy shall provide for a minimum coverage of $__________ for each person injured, $__________ for each accident, and $__________ for property damage. 9. Restrictions Lessee shall not use the Premises for any unlawful, improper, or immoral use, nor shall the Premises be used for any purpose other than a hotel. 10. Renewal A. This Lease Agreement may be extended, in its entirety, for a period of ______ (number) years from the date of expiration of the initial term, on the same terms and conditions, provided Lessee notifies Lessor in writing of its intention to renew _____ (number) days before the expiration date. B. On termination of this Lease Agreement, or prior to the extension of this Lease Agreement, any differences arising between the parties relative to inventories of the furniture, furnishings, or fixtures shall be adjusted among the parties, and Lessee shall replace any lost or damaged items with items of the same quality as the items to be replaced. 11. Records A. Lessee shall maintain complete and accurate books, records, and accounts of all financial transactions entered into by Lessee pertaining to the conduct of the hotel, and the records shall be open for inspection or review by Lessor at all reasonable times during the regular business day. B. Lessee shall provide Lessor with a quarterly financial statement from which Lessor shall be able to readily ascertain the amount of any percentage rental due for the preceding quarter. C. Not later than _____ (number) days before expiration of this Lease Agreement, Lessee shall submit to Lessor or Lessor's representative a complete statement of income and expenses covering all operations on the Premises for the entire Lease period, which statement shall be subject to verification by Lessor from the records of Lessee. 12. Surrender and Holding Over A. Lessee shall surrender the Premises and remove all personal property and personnel from the Premises on termination under Section 4 of this Lease Agreement, on expiration of the initial term, or on expiration of the renewal period if Lessee has exercised the option to renew as provided in Section 10 . B. Any holding over by Lessee without the express authorization of Lessor shall be treated as a tenancy from month-to-month, at a rental of $_________ per month in advance, payable on the ____ day of each month. Lessor shall retain all remedies under this Lease Agreement and rights under the law for removal of Lessee from the Premises. 13. Purchase of Supplies on Termination On termination of this Lease Agreement or any extension of this Lease Agreement for any reason, Lessor shall have the right to purchase all or any part of the stock of provisions and supplies that Lessee shall then have on hand for the operation of the hotel. Lessor shall pay to Lessee the invoice price of the provisions and supplies. Payment shall be made in cash within _____ (number) days after Lessor's determination as to what provisions and supplies are available. 14. Restoration of Furnishings Lessor shall have the right to have all furniture, furnishings, and fixtures returned to Lessor by Lessee in as good condition as when received by Lessee at the commencement of the Lease term, normal wear and tear excepted. If they are not so returned, Lessor may restore the furnishings, and Lessee shall be liable for reimbursement for the expenses so incurred. 15. Severability The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 16. No Waiver The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. 17. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of ____________. 18. Notices Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement. 19. Attorney’s Fees In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees. 20. Mandatory Arbitration Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect. 21. Entire Agreement This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. 22. Modification of Agreement Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party. 23. Assignment of Rights The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party. 24. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine. WITNESS our signatures as of the day and date first above stated. ________________________ _________________________ (Name of Lessor) (Name of Lessee) By:____________________________ By:_______________________________ ___________________________ ___________________________ (P rinted name & Office in Corporation) (P rinted name & Office in Corporation ___________________________ ___________________________ (Signature of Officer) (Signature of Officer) (Acknowledgment form may vary by state) Attach Exhibits