LETTER OF INTENT (“LOI”)

DATE OF LOI 23rd Feb, 2023

Revenue Share
TYPE OF AGREEMENT (Only LOI to be signed iniFally – and basic mutual agreement binding agreement
PROPOSED can be signed in due course)
First Party: Mr. Abhijit Jaitapkar
PROPERTY OWNER, Project Hotel @ Sindhudurg
NAME & ADDRESS 767, Jaideep Complex , 1st Floor , Jaitapkar Colony , Oros Bk , Tal – Kudal Dist. –
Sindhudurg , MH , India
Second Party: Hotel Suba Star Pvt Ltd ( Suba Hotels )
LESSEE/BRAND , NAME B2/1004 Marathon Nextgen Innova, Off Ganpatrao Kadam Marg ,
& ADDRESS Lower Parel (W), Mumbai , 400013 .
Project Hotel @ Sindhudurg , 767, Jaideep Complex , 1st Floor , Jaitapkar Colony
PROPERTY ADDRESS , Oros Bk , Tal – Kudal Dist. – Sindhudurg , MH , India
DESCRIPTION OF 42 No Guest Rooms – 01 Restaurant – 01 Banquet – 01 DG – 02 Elevator –
REVENUE SHARE Basement - Parking space meant for 15-20 Cars – Staff Area
PROPERTY ( Hotel in project stage )
BRAND JOINING FEES INR.25000 /- PER KEY at the time of Term Sheet signing
( ONE TIME FEES – NON REFUNDABLE )
Technical Fees INR.2 Lakh at the time of Term Sheet signing against Know to do technical fees
( ONE TIME FEES – NON REFUNDABLE )
Against the Technical Fees – Hotel Operator will extend all kinds of assistance in regards to
Purchase – Expertise in acquiring – Streamlining the Project ….etc in coordination with Hotel
Owner.
This property to associate is an operational hotels and has all relevant amenities
in the property and they are as follows :

Sanctioned electric load of [ ] kw from [ ]

Power back-up from [ ] of [ ] kw that is sufficient to operate at least [__] tones of air-
AMENITIES IN THE conditioning units
LEASE /RENENUE SHARE Furniture as required in Rooms – Public Area – Lobby – Restaurant – Staff Area …etc All
PROPERTY Kitchen and other hotel required Services Equipment to be installed
Annexure of Installations required (to be done)
Entire Hotel Project cost along with Salary - Vendor Payment - Technical assistance cost -
entire hotel fixed n soft furnishing – electricity – Automation All
Licenses and necessary approvals, property tax will be done by owner.

After Hotel Opening - Operational Cost including Salary , Daily Operation Cost , Admin Cost
, Engg , Electricity , Repair works or any kind of taxation expenses to be done by Hotel
Operator for this hotel – will be describe in details in MOM
NATURE OF PROPERTY Commercial Hotel

Revenue Share as applicable for Net. Room Revenue & Net. F&B Revenue
REVENUE SHARE Net Total Revenue up to 20 Lakh :
COMMERCIALS 23% Revenue share on Net. Room Revenue & 15% on Net. F&B Revenue

Net Total Revenue from INR. 25.01 Lakh up to INR.30 Lakh :

25% Revenue share on Net. Room Revenue & 17% on Net. F&B Revenue
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 Net Total Revenue from INR. 30.01 Lakh & Above :
28% Revenue share on Net. Room Revenue & 18% on Net. F&B Revenue
A detailed working will be given in MOM / Agreement
Deposit:- INR. 15 Lakh deposit will be given in 4 months from the date of operations
5 Lakh at the time of Agreement
5 Lakh at the time of Hotel Handover /Opening Week
5 Lakh within first 3 month of operation
AGREEMENT TERM 15 Years 11 months ( 9 Years 11 Month & 6 Years )

9 Year for both party (3 months’ noHce period aLer Lock-In)

LOCK-IN PERIOD
Applicable GST as applicable on Revenue Share
(At the 7me of monthly pay-out GST to be added and TDS to be deducted on Revenue
TAXES Share amount –GST payment receipt to be received from owner every quarter and TDS
challahs to be provided to Owner every month )

STAMP DUTY AND 50:50 borne by both the parHes

REGISTRATION EXPENSES.

STATUTORY EXPENSES Property related Statutory expense will be on Lessor account e.g. –
Property Tax will be on owner & IN case of any civil job required duri9ng repair &
maintenance – the expenses will be directed to Hotel Owner

Operating licenses –e.g.Trade License , renewal of bar license (if any),

FSSAI etc is on account of LESSEE along with PF, ESIC of employees
FREE OPERATION First 3 Month from the date of opening will be considered as Free
PERIOD Period and The applicable Revenue Share shall be paid as mention above after Free
Period.
For respective Lock in Period’s both side cannot terminate agreement
TERMINATION
RENEWAL As per above terms. Post expiry of agreement as may be mutually
agreed to renew or terminate.
This LOI is valid till 28th Feb, 2023.
VALIDITY OF THIS LOI Post signing this LOI -a joint inspection of the property to be done and
initial due diligence to be initiated by Lessee.
The Lessee shall have complete autonomy in branding and naming
conventions and choosing its preferred customers,marketing
channelsand sales strategy.
Lessee shall be entitled to name the lease premises as a ‘CLICK HOTEL ( Hotel Suba Star
Pvt Ltd ) ’ umbrella brand.
BRANDING & Given the immense Good will of the property name“CLICK HOTEL ”, Lessee will complete
MARKETING RIGHTS autonomy to incorporate the name as part of naming and branding – e.g.
“Clarion/Quality/Comfort/GenX Hotel/R & B Select Hotel / Click Hotel”
Lessee will have complete rights to put its name plate / signage on the external façade of
the lease premises during the entire term of the lease apart from using the same brand
for its promotion and branding.
The property would be upgraded as per CLICK HOTEL Standard and handed over to lessee
CAPITAL EXPENSES by lessor.
The owners shall be responsible for any kind of major plumbing, structural issues which
arises due to default in design and age of structure.
Suba Star Hotels Pvt Ltd ( Click Hotel ) will take care of entire branding inside – outside of
Hotel Premises
All operational issues will be handled by the lessee.
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 IN WITNESS WHERE OF THE PARTIES HAVE SET AND SUBSCRIBED THEIR RESPECTIVE HANDS TO THESE PRESENTS
ON THE DAY, MONTH AND YEAR HEREIN WRITTEN:

FOR FIRST PARTY FOR SECOND PARTY

Abhijit Jaitapkar Authorized Signatory

Project Hotel @ Sindhudurg ( Hotel Suba Star Pvt Ltd )
767, Jaideep Complex , 1st Floor , Jaitapkar Colony ,
Oros Bk , Tal – Kudal Dist. – Sindhudurg , MH , India

Stamp : Stamp :

Witness Details

Witness 1 : Name : Witness 2 : Name :

Identification document : PAN Card / Aadhar Card Identification document : PAN Card / Aadhar Card

Snap : Snap :

Sign : Sign :

Documents Attached :
Witness 3 : Name : 1. All persons ID Card
Identification document : PAN Card / Aadhar Card 2. Hotel Suba Star Pvt Ltd Pan Card
3. Mr.Abhijit or Company Pan Card

Snap :

Sign :

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