Amendment to Braemar Hotel Master Management Agreement Regarding Payment Timing Between Braemar TRS Corporation and Remington Lodging & Hospitality, LLC
Braemar TRS Corporation and Remington Lodging & Hospitality, LLC have agreed to temporarily change the payment schedule for management fees and reimbursable expenses under their existing hotel management agreement. Instead of monthly payments, these amounts will now be paid weekly to help Remington manage its working capital during the Covid-19 pandemic. This new payment schedule will start immediately and can be ended by Braemar at any time. The agreement is confirmed by signatures from both parties.
Exhibit 10.2
March 13, 2020
| Braemar TRS Corporation | |
| 14185 Dallas Parkway, Suite 1100 | |
| Dallas, Texas 75254 | |
| Attention: Chief Financial Officer |
| Re: | Amended and Restated Braemar Hotel Master Management Agreement (the “Management Agreement”) dated August 8, 2018, by and among Braemar TRS Corporation, CHH III Tenant Parent Corp., RC Hotels (Virgin Islands), Inc. and Remington Lodging & Hospitality, LLC |
To the Chief Financial Officer:
Capitalized terms used, but not defined, herein shall have the meanings given to them in the Management Agreement.
With regard to each Hotel that is subject to the Management Agreement, Section 16.01 of the Management Agreement provides that Manager shall be paid its monthly Base Management Fee on the fifth (5th) day of each month for the preceding Accounting Period. As you are no doubt aware, the spread of the novel coronavirus (Covid-19) is having a significant impact on the travel and hospitality industry. In order for Manager to better manage its corporate working capital to ensure the continued efficient operation of the Hotels, we request that you agree to permit: (i) payment of the Base Management Fee to Manager; and (ii) reimbursement to Manager of all expenses for which Manager is entitled to be reimbursed under the Management Agreement, in each case, on a weekly rather than monthly basis (the “Proposal”). If approved, the timing of payments contemplated by the Proposal will begin immediately and will continue until terminated by Owner.
Please indicate your agreement to the Proposal by your signature below. Should you have any questions, please do not hesitate to contact me.
REMINGTON LODGING & HOSPITALITY, LLC, a Delaware limited liability company | ||
| By: | /s/ Sloan Dean | |
| Name: | Sloan Dean | |
| Title: | Chief Executive Officer | |
| APPROVED AND AGREED: | ||
| Braemar TRS Corporation, on behalf of itself and | ||
| all New Lessees under the Management Agreement, | ||
| hereby agrees to Proposal | ||
| BRAEMAR TRS CORPORATION | ||
| By: | /s/ Deric Eubanks | |
| Name: | Deric Eubanks | |
| Title: | President | |
| cc: | ||
| Braemar Hospitality Limited Partnership | ||
| 14185 Dallas Parkway, Suite 1100 | ||
| Dallas, Texas 75254 | ||
| Attention: General Counsel | ||
