Common use of Revpar Test Clause in Contracts

Revpar Test. (a) Commencing in 2004, the Revpar Test shall be deemed to not have been met if, in two consecutive Operating Years beginning on or after 2003, the Revpar for the Hotel, under Innisfree's management, is not at least the Minimum Average Revpar of the Competitive Set (as determined below). For purposes of this Section 4.6(a), the Minimum Average Revpar shall be equal to 80% of the average Revpar of the Competitive Set for the comparable time period. (b) Commencing in 2009, the Revpar Test shall be deemed to not have been met if, in two consecutive Operating Years beginning on or after 2008, the Revpar for the Hotel, under Innisfree's management, is not at least the Minimum Average Revpar of the Competitive Set. For purposes of this Section 4.6(b), the Minimum Average Revpar shall be equal to 90% of the average Revpar of the Competitive Set for the comparable time period. (c) The Minimum Average Revpar may be adjusted higher or lower by agreement of the Owner-Seller and Innisfree as provided in Section 4.6(i) and following an addition to or deletion from the Competitive Set. (d) The Competitive Set shall initially consist of the following hotels: Young's By The Sea Holiday Inn-Gulf Shores Oleander Hotel Lighthouse Hotel Quality Inn-Gulf Shores (e) The Competitive Set may not be changed except as provided in Section 4.6(i) and except as agreed to by the Owners and Innisfree where one of the following occurs: (i) One of the Competitive Set members ceases to operate for a period of 24 months or more or no longer meets the criteria for the Competitive Set. (ii) An additional hotel that satisfies the Competitive Set criteria opens in the vicinity of Gulf Shores, Alabama and completes 2 full years of operation. The addition or deletion of a hotel as a member of the Competitive Set shall, at