Common use of Routine Maintenance and Repairs Clause in Contracts

Routine Maintenance and Repairs. Subject to the availability of sufficient funds therefor, and in accordance with an Approved Budget, Manager shall maintain each Hotel in good repair and condition and in conformity with the Operational Standards and applicable laws and regulations, and shall make or cause to be made such routine maintenance, repairs and minor alterations, the cost of which can be expensed under GAAP, as Manager, from time to time, deems necessary for such purposes and in order for such Hotel to maintain a competitive position. The cost of such routine maintenance, repairs and alterations shall be paid from Total Revenues and shall be treated as an Operating Cost; to the extent that Hotel revenues are insufficient therefor, Manager shall not be obligated to perform such routine maintenance and repairs. Expenditures under this Section 5.4 shall not be paid from the FF&E/Capital Improvement Reserve Fund. The determination of whether an expenditure is for routine repairs and maintenance under this Section 5.4 or, in the alternative, a Capital Expenditure (as defined below) under Section 5.5 shall be made in accordance with this Agreement, GAAP, and the Uniform System of Accounts.