GOP Test definition
Examples of GOP Test in a sentence
The Incentive Fee shall only be calculated and earned based upon the Gross Operating Profit achieving the required GOP Test for any given Fiscal Year or a portion thereof if the period of calculation cannot include the full period from January 1 to December 31.
If Owner fails to deliver a Termination Notice to Hyatt within such 45 day period, Owner shall have waived its right to terminate this Agreement with respect to the preceding Performance Test Period, and both Fiscal Years comprising any such Performance Test Period shall be deemed to be Fiscal Years in which the Hotel passed the RevPAR Test and the GOP Test.
The Hotel would not meet the requirements for passage of the “Performance Test” in any Performance Test Period in which the Hotel failed both the RevPAR Test and the GOP Test in each consecutive Fiscal Year comprising the Performance Test Period.
In any Fiscal Year in which Hyatt is able to demonstrate that the Hotel’s failure of the GOP Test is attributable to a material increase in operating costs, occasioned by an external factor that was not within Hyatt’s control and that was not reasonably foreseeable at the time when the relevant Annual Plan was produced, for purposes of determining whether or not the Hotel has passed the GOP Test, Gross Operating Profit shall be proportionately adjusted to reflect the impact of any such circumstance.
The “GOP Target” means the minimum Gross Operating Profit that would have been required in order for the Hotel to have met the GOP Test.
The “Performance Test” means both the RevPAR Test (defined below) and the GOP Test (defined below).
Pro-ration of Management Fees In the event of any casualty or taking under the power of eminent domain which does not result in the termination of this Agreement, the Parties shall mutually agree on an equitable adjustment to the Performance GOP Test and, if applicable, the GOP Margin Threshold.