Free Hotel Loan Agreement Template
Hotel Loan Agreement
This Hotel Loan Agreement ("Agreement") is made and entered into this [Date] day of [Month], [Year], by and between [Your Company Name], located at [Your Company Address] ("Borrower" or "Hotel"), and [Lender's Name], located at [Lender's Address] ("Lender"). The Borrower and Lender may hereinafter collectively be referred to as the "Parties" or individually as a "Party."
Recitals
WHEREAS, the Borrower is engaged in the business of providing hospitality services and requires funding for expansion and enhancement of its services;
WHEREAS, the Lender is willing to provide a loan to the Borrower under the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties hereby agree as follows:
1. Loan Amount and Purpose
1.1 Loan Amount
The Lender agrees to lend the Borrower the total amount of [Loan Amount] ("Loan Amount") under the terms specified in this Agreement.
1.2 Purpose
The Loan Amount shall be used exclusively for the following purposes:
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Expansion of Facilities: Enhancing current properties and adding new rooms and amenities.
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Technological Upgrades: Implementing advanced technology systems to improve guest experience and operational efficiency.
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Marketing and Promotion: Launching comprehensive marketing campaigns to increase brand visibility and attract more guests.
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Staff Development: Investing in training programs to enhance employee skills and service quality.
2. Disbursement of Loan
2.1 Disbursement Schedule
The Loan Amount shall be disbursed according to the following schedule:
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An initial disbursement of [Initial Disbursement Amount] on or before [Initial Disbursement Date].
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The remaining balance of [Remaining Balance Amount] to be disbursed in [Number] equal installments of [Installment Amount] on or before the following dates: [List of Disbursement Dates].
2.2 Conditions Precedent
The Lender's obligation to disburse the Loan Amount is subject to the following conditions precedent:
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The Borrower shall provide all necessary documentation and information as required by the Lender.
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The Borrower shall have no outstanding defaults under any other loan agreements.
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The Borrower shall provide evidence of the intended use of the loan proceeds.
3. Interest and Repayment
3.1 Interest Rate
The Loan Amount shall bear interest at a fixed rate of [Interest Rate]% per annum, calculated on the basis of a 360-day year.
3.2 Repayment Schedule
The Borrower agrees to repay the Loan Amount, including accrued interest, in equal monthly installments over a period of [Repayment Period] years, commencing on [Repayment Start Date]. The repayment schedule shall be as follows:
|
Year |
Monthly Installment ($) |
Total Annual Payment ($) |
|---|---|---|
|
2051 |
41,666 |
500,000 |
|
2052 |
41,666 |
500,000 |
|
2053 |
41,666 |
500,000 |
|
2054 |
41,666 |
500,000 |
|
2055 |
41,666 |
500,000 |
|
2056 |
41,666 |
500,000 |
|
2057 |
41,666 |
500,000 |
|
2058 |
41,666 |
500,000 |
|
2059 |
41,666 |
500,000 |
|
2060 |
41,666 |
500,000 |
|
Total |
500,000 |
5,000,000 |
3.3 Prepayment
The Borrower shall have the right to prepay the Loan Amount, in whole or in part, at any time without penalty. Any prepayment shall first be applied to accrued interest and then to the principal amount.
4. Representations and Warranties
4.1 Borrower’s Representations and Warranties
The Borrower represents and warrants to the Lender that:
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The Borrower is duly organized, validly existing, and in good standing under the laws of its jurisdiction.
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The Borrower has the authority to enter into this Agreement and perform its obligations hereunder.
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The execution, delivery, and performance of this Agreement do not and will not violate any applicable law or regulation.
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All information provided by the Borrower to the Lender is true and accurate in all material respects.
4.2 Lender’s Representations and Warranties
The Lender represents and warrants to the Borrower that:
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The Lender has the authority to enter into this Agreement and perform its obligations hereunder.
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The execution, delivery, and performance of this Agreement do not and will not violate any applicable law or regulation.
5. Covenants
5.1 Affirmative Covenants
The Borrower agrees to:
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Use the Loan Amount solely for the purposes specified in Section 1.2.
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Maintain accurate and complete financial records and provide the Lender with access to such records upon request.
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Comply with all applicable laws and regulations in the conduct of its business.
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Maintain adequate insurance coverage for its property and operations.
5.2 Negative Covenants
The Borrower agrees not to:
-
Incur any additional indebtedness without the prior written consent of the Lender.
-
Sell, lease, or otherwise dispose of any significant portion of its assets without the prior written consent of the Lender.
-
Make any material changes to its business operations or structure without the prior written consent of the Lender.
6. Events of Default
6.1 Definition
An "Event of Default" shall occur if:
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The Borrower fails to make any payment when due under this Agreement.
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The Borrower breaches any representation, warranty, or covenant contained in this Agreement.
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The Borrower becomes insolvent or files for bankruptcy.
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The Borrower ceases to conduct its business operations.
6.2 Remedies
Upon the occurrence of an Event of Default, the Lender may, at its option:
-
Declare the entire unpaid principal amount of the Loan Amount, together with all accrued interest, immediately due and payable.
-
Exercise any other rights and remedies available under applicable law.
7. Confidentiality
7.1 Confidential Information
The Parties agree to maintain the confidentiality of this Agreement and not disclose any information to third parties without the prior written consent of the other Party, except as required by law.
7.2 Use of Information
Confidential information disclosed under this Agreement shall be used solely for the purposes of fulfilling the terms of this Agreement.
8. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any disputes arising under this Agreement shall be resolved in the courts of [Jurisdiction].
9. Dispute Resolution
9.1 Negotiation
In the event of a dispute arising out of or in connection with this Agreement, the Parties agree to first attempt to resolve the dispute through good-faith negotiations.
9.2 Mediation
If the Parties are unable to resolve the dispute through negotiation, they agree to participate in mediation before pursuing any other legal remedies. The mediator shall be chosen by mutual agreement of the Parties.
9.3 Arbitration
If mediation fails, any unresolved disputes shall be settled by binding arbitration conducted in accordance with the rules of the American Arbitration Association (AAA). The arbitrator's decision shall be final and binding on both Parties.
10. Amendments
Any amendments to this Agreement must be in writing and signed by both Parties. Verbal modifications are not valid or enforceable.
11. Entire Agreement
This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, whether written or oral, relating to its subject matter.
12. Severability
If any provision of this Agreement is found to be invalid or unenforceable, the remainder of this Agreement shall remain valid and enforceable according to its terms.
13. Notices
Any notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person, sent by email with confirmation of receipt, or sent via certified mail, return receipt requested, addressed as follows:
To the Borrower:
[Your Company Name]
[Your Company Address]
[City, State, ZIP Code]
[Your Company Email]
To the Lender:
[Lender's Name]
[Lender's Address]
[City, State, ZIP Code]
[Lender's Email]
14. Insurance
The Borrower agrees to maintain adequate insurance coverage for its property and operations, including liability insurance to cover any claims arising from the use of the loan proceeds. The Borrower shall provide the Lender with evidence of such insurance coverage upon request.
15. Force Majeure
Neither Party shall be liable for any failure or delay in the performance of its obligations under this Agreement if such failure or delay is due to events beyond the reasonable control of the affected Party, including but not limited to acts of God, war, strikes, pandemics, or government orders.
16. Indemnification
16.1 Indemnification by Borrower
The Borrower agrees to indemnify, defend, and hold harmless the Lender from and against any and all claims, liabilities, damages, and expenses (including reasonable attorney's fees) arising out of or in connection with the Borrower's performance of its obligations under this Agreement, except to the extent caused by the gross negligence or willful misconduct of the Lender.
16.2 Indemnification by Lender
The Lender agrees to indemnify, defend, and hold harmless the Borrower from and against any and all claims, liabilities, damages, and expenses (including reasonable attorney's fees) arising out of or in connection with the Lender's actions or omissions under this Agreement, except to the extent caused by the gross negligence or willful misconduct of the Borrower.
17. Waiver
The waiver by either Party of any breach of this Agreement shall not operate or be construed as a waiver of any subsequent breach. No waiver shall be valid unless in writing and signed by the Party granting the waiver.
18. Counterparts
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Electronic signatures shall be deemed valid and binding.
19. Miscellaneous
19.1 Headings
The headings in this Agreement are for convenience only and shall not affect its interpretation.
19.2 No Assignment
The Borrower may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Lender.
19.3 Relationship of Parties
Nothing in this Agreement shall be construed to create a partnership, joint venture, or agency relationship between the Parties. Each Party is an independent contractor and not an agent of the other Party.
19.4 Survival
The provisions of this Agreement that by their nature should survive termination or expiration, including but not limited to confidentiality, indemnification, and governing law, shall survive any termination or expiration of this Agreement.
20. Signatures
IN WITNESS WHEREOF, the Parties hereto have executed this Hotel Loan Agreement as of the day and year first above written.
[Your Company Name]
By:
Name: [Authorizing Person's Name]
Title: [Title]
[Lender's Name]
By:
Name: [Lender's Name]
Title: [Title, if applicable]
