Hotel GOP definition
Hotel GOP means, for each Fiscal Year in question, the excess (if any) of (a) Gross Receipts for such period over (b) Operating Expenses, except that the following shall not be considered Operating Expenses for purposes of calculating Hotel GOP: (i) contributions to the FF&E Fund, (ii) the Management Fee, (iii) insurance expenses, (iv) equipment rental expenses to the extent otherwise treated as Operating Expenses under Section 3.4.1(g)(ii), (v) expenses for Owner’s indemnification of Manager (otherwise treated as Operating Expenses under Section 11(f)), (vi) asset management fees, and (vii) costs of the audit pursuant to Section 8.4(d). The parties acknowledge that, as of the Effective Date, Owner’s property is not subject to real estate and personal property taxes, and therefore it is anticipated that real estate and personal property taxes will not be payable and therefore will not be Operating Expenses. If, after the Effective Date, either Hotel is subject to any real estate and personal property taxes, Owner will pay such taxes and such taxes will not be included in the calculation of Hotel GOP for purposes of determining compliance with the Performance GOP Test or meeting the GOP Margin Threshold (if applicable).
Hotel GOP means, for each Fiscal Year in question, the excess (if any) of (a) Gross Receipts for such period over (b) Operating Expenses of the Hotel, expressed as a percentage, including all allocations by Owner for campus-wide costs, except that the following shall not be considered Operating Expenses of the Hotel for purposes of calculating Hotel GOP: (i) contributions to the FF&E Fund, (ii) the Management Fee, (iii) insurance expenses, including premiums and deductibles, (iv) equipment rental expenses to the extent otherwise treated as Operating Expenses of the Hotel under Section 3.4(g)(ii), (v) expenses for Owner’s indemnification of Operator (otherwise treated as Operating Expenses of the Hotel under Section 11(h)), (vi) asset management fees, and (vii) costs of the audit pursuant to Section 7.4(c). The parties acknowledge that, as of the Effective Date, Owner’s property is not subject to real estate and personal property taxes, and therefore it is anticipated that real estate and personal property taxes will not be payable and therefore will not be Operating Expenses of the Hotel. If, after the Effective Date, the Hotel is subject to any real estate and personal property taxes Owner will pay such taxes and such taxes will not be included in the calculation of Hotel GOP for purposes of determining compliance with the Performance GOP Test or meeting the GOP Incentive Test.