Common use of Centralized Purchasing Clause in Contracts

Centralized Purchasing. If the other hotels operated by the Manager (or some of them) adopt a centralized purchasing system whereby operating supplies, food or consumables are purchased for the participating hotels from suppliers designated by the Manager, who may be affiliated with the Manager, then the Manager may cause the Hotel to participate in such centralized purchasing system, provided that the terms and conditions of such arrangement, taking into account the quality of the services and of the items purchased and the cost and payment terms to the Hotel of the items purchased, not less favorable to the Hotel than those, which could be obtained by the Hotel from unaffiliated third parties. All proposed arrangements of whatsoever kind or nature with respect to the operations of the Hotel between the Manager and any person or entity affiliated, directly or indirectly, with the Manager (or any owner of the Manager) shall be disclosed in writing to the Owner by the Manager and shall be subject to the prior written consent of the Owner.