Document:

Exhibit 10.4

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION
SERVICES AGREEMENT (this “Agreement”) dated as of March 31, 2017, is by and among (i) Crestline
Hotels & Resorts LLC (the “Service Provider”), (ii) Hospitality Investors Trust, Inc. (formerly known
as American Realty Capital Hospitality Trust, Inc.) (“ARCH”), and (iii) Hospitality Investors Trust
Operating Partnership, L.P. (formerly known as American Realty Capital Hospitality Operating Partnership, L.P.) (the
“OP” and together with ARCH, the “Company”). The Company and the Service Provider are
collectively referred to herein as the “Parties.”

 

WITNESSETH:

 

WHEREAS, the Company,
the Service Provider and certain other persons party thereto have entered into that certain Framework Agreement, dated as of January
12, 2017 (the “Framework Agreement”);

 

WHEREAS, the Company
desires, for a transitional period beginning on the date hereof (the “Effective Date”), to avail itself of the
assistance of the Service Provider and to have the Service Provider undertake the duties and responsibilities hereinafter set forth;
and

 

WHEREAS, the Service
Provider is willing to render such services on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration
of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as set forth herein:

 

1.          Definitions.
Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Framework Agreement, and the following
terms, as used herein, shall have the meanings set forth below:

 

“Affiliate”
shall mean, with respect to any person, any other person directly or indirectly controlling, controlled by, or under common control
with such person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as applied to any person, means the possession, directly or indirectly,
of the power to vote a majority of the securities having voting power for the election of directors or managers (or other persons
acting in similar capacities) of such person or otherwise to direct or cause the direction of the management and policies of such
person through the ownership of voting securities, by contract or otherwise.

 

“Person”
means any individual, corporation, partnership, limited liability company, limited partnership, firm, joint venture, association,
joint-stock company, trust, unincorporated organization, governmental authority, other entity or group.

 

     

     

    

 

2.          Duties
of the Service Provider.

 

(a)          Effective
as of the date hereof, the Company hereby retains and appoints the Service Provider to perform the services set forth on Schedule
A hereto (the “Services”), and the Service Provider hereby accepts such appointment, all subject to the
terms and conditions hereinafter set forth. The Service Provider shall devote such time and resources to the performance of the
Services hereunder as it shall determine to be reasonably necessary to fully perform its obligations hereunder. This Agreement
provides no authority for Service Provider to bind the Company or any of its Affiliates to any agreement, arrangement or other
action. In all instances, Service Provider shall bring any potential written agreement underlying any Service to the Company for
discussion with, and approval by, the Company.

 

(b)          It
is understood and agreed that the Service Provider may retain third-party service providers (including its Affiliates) to provide
some or all of the Services to the Company. The Service Provider shall in all cases retain responsibility for the provision to
the Company of the Services to be performed by any third-party service provider or subcontractor or by any of the Service Provider’s
Affiliates.

 

3.          Standard
of Service.

 

(a)          The
Service Provider represents, warrants and agrees that the Services shall be provided in good faith, in accordance with applicable
Law and, except as specifically provided in the Schedule A, in a manner generally consistent with the historical provision
of the Services and with the same standard of care as historically provided. Subject to Section 2(b), the Service Provider
agrees to assign sufficient resources and qualified personnel as are reasonably required to perform the Services in accordance
with the standards set forth in the preceding sentence.

 

(b)          Except
as expressly set forth in Section 3(a) or in any contract entered into hereunder, the Service Provider makes no representations
and warranties of any kind, implied or expressed, with respect to the Services, including, without limitation, no warranties of
merchantability or fitness for a particular purpose, which are specifically disclaimed. The Company acknowledges and agrees that
this Agreement does not create a fiduciary relationship, partnership, joint venture or relationship of trust or agency between
any of the parties hereto, and all Services are provided by the Service Provider as an independent contractor.

 

(c)          Service
Provider or the Company shall promptly notify the Company or Service Provider, as applicable, of any event or circumstance of which
such Party or any of its representatives has knowledge that causes, or would be reasonably likely to cause, a material disruption
in the Services.

 

(d)          Service
Provider shall be solely responsible for the payment of all employee benefits and any other direct and indirect compensation for
Service Provider (or its Affiliates’) personnel assigned to perform the Services, as well as such personnel’s worker’s
compensation insurance, employment taxes, and other applicable employer liabilities relating to such personnel as required by law.

 

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(e)          Service
Provider and the Company will maintain or cause to be maintained reasonable security measures with respect to any interfaces required
between Service Provider and the Company in connection with the Services in a manner generally consistent with the historical provision
of the Services and with the same standard of care as historically provided. At all times during the Term, neither Service Provider
nor the Company will intentionally or knowingly introduce, and each will take commercially reasonable measures to prevent the introduction
of, into Service Provider’s or the Company’s computer systems, databases, or software any viruses or any other contaminants
(including, but not limited to, codes, commands, instructions, devices, techniques, bugs, web bugs, or design flaws) that may be
used to access (without authorization), alter, delete, threaten, infect, assault, vandalize, defraud, disrupt, damage, disable,
inhibit, or shut down another Party's computer systems, databases, software, or other information or property. Except as may be
required in connection with the provision of the Services, neither Service Provider nor the Company will intentionally or knowingly
tamper with, compromise, or attempt to circumvent any physical or electronic security or audit measures employed by the other in
the course of its business operations, and/or intentionally or knowingly compromise the security of the other’s computer
systems and/or networks.

 

(f)          Each
of Service Provider and the Company shall reasonably cooperate with the other and shall cause their respective Affiliates to reasonably
cooperate (i) in notifying the other of any Security Breach affecting Service Provider or the Company and (ii) in any investigation
and mitigation efforts relating to such Security Breaches, in each case, in such party’s reasonable discretion and subject
to applicable law. As used herein, “Security Breach” means unauthorized access to or disclosure of computerized
data that compromises the security, confidentiality or integrity of any Confidential Information maintained by a Party and are
part of the Services provided hereunder. 

 

(g)          The
Company shall use commercially reasonable efforts to maintain or establish, and cause its directors, officers, other employees,
personnel and agents to comply with, reasonable security measures, as well as all necessary physical, information and other security
practices and policies. Service Provider shall have no liability for any Security Breach to the extent arising out of the Company’s
failure to comply with this Agreement.

 

4.          Fees
and Other Compensation of the Service Provider.

 

(a)          During
the Term (as defined below), as consideration for the Services, the Service Provider shall receive from the Company (by wire transfer
of immediately available funds to account(s) specified by the Service Provider in writing) (i) in advance of the applicable month
for which the Services will be provided the amounts set forth on Schedule A
and (ii) all reasonable and documented out-of-pocket fees, costs and expenses incurred by the Service Provider in
connection with providing the Services, payable within twenty (20) days of the issuance of an invoice by the Service Provider
to the Company showing the computation of all such fees, costs and expenses under this Section 4.

 

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(b)          Notwithstanding
the foregoing, the Parties agree that on or before October 1 of each calendar year and to the extent that this Agreement remains
in effect and Services continue to be provided hereunder, they will negotiate in good faith with respect to the consideration
specified in Section 4(a)(i) that will be payable for any month (or portion thereof) during the Term occurring in the following
calendar year. In the event that agreement cannot be so reached, this Agreement shall automatically terminate on December 31.

 

(c)          All
amounts owed by the Company to the Service Provider under this Agreement shall bear interest from the date due until paid at the
lesser of (i) Prime Rate plus two percent (2%) per annum or (ii) the maximum lawful contract rate per annum. In no event, however,
shall the charges permitted under this Section or elsewhere in this Agreement, to the extent they are considered to be interest
under applicable law, exceed the maximum lawful rate of interest. As used herein, the “Prime Rate” shall mean
the rate per annum equal to the “Prime Rate” as published on the due date of the amount in question by The
Wall Street Journal, Southwest Edition, in its listing of “Money Rates.”

 

(d)          Term;
Termination of Agreement. The term of this Agreement shall begin on the Effective Date and shall continue in force until June
29, 2017 and shall automatically renew for successive 90 day periods unless the Service Provider, on the one hand, or ARCH or
the OP, on the other hand, delivers written notice to the other at least forty (40) days prior the expiration of the initial term
or any renewal term (the “Term”).
The provisions of this Section 5 and Sections 6-15 shall survive the expiration or earlier termination of this Agreement.

 

5.          Confidentiality.

 

(a)          Service
Provider may receive (or otherwise have access to) Confidential Information of the Company (both orally and in writing) in connection
with the provision of the Services. “Confidential Information” means any information, whether or not designated
or containing any marking such as “Confidential,” “Proprietary,” or some similar designation, related to
the Company and its services, properties, business, assets and financial condition relating to the business, finances, technology
or operations of the Company or its Affiliates. Such information may include financial, technical, legal, marketing, network, and/or
other business information, reports, records, or data (including, but not limited to, computer programs, code, systems, applications,
analyses, passwords, procedures, output, information regarding software, sales data, vendor lists, customer lists, and employee-
or customer-related information, personally identifiable information, business strategies, advertising and promotional plans, creative
concepts, specifications, designs, and/or other material.

 

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(b)          Service
Provider agrees to treat all Confidential Information provided by the Company, or which Service Provider otherwise has access to,
pursuant to this Agreement as proprietary and confidential to the Company and to hold such Confidential Information in confidence.
Service Provider shall not (without the prior written consent of the Company) disclose or permit disclosure of such Confidential
Information to any third party; provided, that, Service Provider may disclose such Confidential Information as permitted
by Section 6(c) and to its third party subcontractors and its Affiliates’ current employees, officers, or directors, or legal
or financial representatives, in each case, who have a legitimate need to know such Confidential Information and who have previously
agreed either in writing or orally (including as a condition of their employment, contract or agency) to be bound by terms respecting
the protection of such Confidential Information which are no less protective as the terms of this Agreement). Service Provider
agrees to safeguard all Confidential Information of the Company with at least the same degree of care (which in no event shall
be less than reasonable care) as Service Provider uses to protect its own Confidential Information but no less than a reasonable
degree of care. Service Provider shall only use the Company’s Confidential Information solely for the purpose of fulfilling
its obligations under this Agreement and providing the Services to the Company. Service Provider shall not, at any time, collect,
use, sell, license, transfer, make available or disclose the Company’s Confidential Information for its own benefit, the
benefit of its Affiliates (or agents, subcontractors or representatives) or for the benefit of others. Service Provider will be
responsible for any violation of the confidentiality provisions of Section 6 by its subcontractors and its Affiliates’ employees,
officers and directors, and legal or financial representatives.

 

(c)          Notwithstanding
this Section 6, the Parties acknowledge and agree that the following information shall not be deemed Confidential Information,
and the receiving Party shall have no confidentiality, non-use or nondisclosure obligation with respect to any such information
to the extent that it: (i) is in the public domain or becomes available in the public domain by no fault or wrongful act of Service
Provider in violation of this Agreement, (ii) was independently developed by Service Provider or any other Persons without the
use of any Confidential Information, (iii) was already in the Service Provider’s possession on a non-confidential basis or
(iv) is approved for release by written authorization of the Company and/or the third party owner of the disclosed information.
The Parties further acknowledge and agree that Confidential Information may be disclosed pursuant to the lawful requirement or
order of a court or governmental agency, or as otherwise required by applicable law, rule or regulation (including as required
in any securities law filings or offering documentation); provided that prompt notice thereof is given to the non-disclosing Party
(unless such notice is not possible under the circumstances, and in such event, such notice shall be provided as promptly as possible
thereafter) so that such non-disclosing Party may, at its sole cost and expense, have the opportunity to intervene and contest
such disclosure and/or seek a protective order or other appropriate remedy.

 

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(d)          All
Confidential Information transmitted or disclosed hereunder will be and remain the property of the Company, and Service Provider
shall promptly (at the Service Provider’s sole election) destroy or return to the Company all copies thereof upon termination
or expiration of this Agreement, or upon the written request of the Company; provided, that, Service Provider shall
not be required to destroy any Confidential Information that is stored solely as a result of a backup created in the ordinary course
of business and is not readily destroyable or that is stored on the computers of the personnel of Service Provider and/or its Affiliates
and subject to deletion in accordance with Service Provider’s and/or its Affiliates’ electronic information management
practices (subject to extended retention by Service Provider’s or its Affiliates’ compliance and legal department personnel
in accordance with the existing document retention/destruction policy of Service Provider and/or its Affiliates). Upon the request
of the Company, Service Provider shall provide notice of any such applicable destruction in writing.

 

(e)          The
Parties acknowledge and agree that, given the unique and proprietary nature of the Confidential Information, monetary damages may
not be calculable or a sufficient remedy for any breach of this Section 6 by Service Provider or its Affiliates, and that
the Company may suffer great and irreparable injury as a consequence of such breach. Accordingly, each Party agrees that, in the
event of such a breach or threatened breach, the Company shall be entitled to seek equitable relief (including, but not limited
to, injunction and specific performance) in order to remedy such breach or threatened breach. Such remedies shall not be deemed
to be exclusive remedies for a breach by Service Provider or its Affiliates but shall be in addition to any and all other remedies
provided hereunder or available at law or equity to the Company.

 

6.          Amendments.
This Agreement shall not be changed, modified, terminated or discharged in whole or in part except by an instrument in writing
signed by all Parties, or their respective successors or permitted assigns, or otherwise as provided herein.

 

7.          Assignment.
This Agreement shall not be assigned by any Party without the prior written consent of the other Party, except to a Person which
is a successor to all or substantially of the assets of the assigning Party. Any assignee shall be bound hereunder to the same
extent as the Company. Notwithstanding anything to the contrary contained herein, the economic rights of the Service Provider hereunder,
including the right to receive all compensation hereunder, may be sold, transferred or assigned by the Service Provider, without
the consent of the Company.

 

8.          Action
Upon Termination. From and after the date of termination of this Agreement, the Service Provider shall not be entitled to compensation
for further service rendered hereunder but shall be reimbursed for all reasonable, documented out-of-pocket expenses accrued through
the date of such termination within ten (10) business days of such termination. The Service Provider shall forthwith upon such
termination:

 

(a)          pay
over to the Company all moneys collected and held for the account of the Company pursuant to this Agreement, after deducting any
accrued compensation and reimbursement for its expenses to which it is then entitled; and

 

(b)          deliver
to the Company a full accounting, including a statement showing all payments collected by it and a statement of all moneys held
by it, covering the period following the date of the last accounting furnished to the Company.

 

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9.           Indemnification.

 

(a)          Indemnification
of the Company by the Service Provider. Subject to Section 11, the Service Provider shall indemnify, defend and hold
harmless the Company, its partners, members, stockholders, other equity holders, directors, officers, employees and agents and
each of their respective Affiliates, successors and assigns, from and against any and all claims, actions, suits, proceedings,
losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and disbursements) (collectively,
“Damages”), arising out of or resulting from, directly or indirectly, (i) any breach of this Agreement, or the
covenants, obligations, or representations or warranties set forth herein, by Service Provider or its Affiliates; and (ii) any
bad faith, gross negligence or willful misconduct on the part of Service Provider or its Affiliates in connection with its provision
of the Services. The remedies provided in this Section 10(a) constitute the sole and exclusive remedy of the Company for
any and all Damages or other claims relating to or arising from this Agreement.

 

(b)          Indemnification
of the Service Provider by the Company. The Company shall indemnify, defend and hold harmless the Service Provider, its partners,
members, stockholders, other equity holders, directors, officers, employees and agents and each of their respective Affiliates,
successors and assigns, from and against any and all Damages arising out of or resulting from the performance by the Service Provider
of the Services to the extent that the Service Provider reasonably believed such performance to be within the scope of authority
conferred upon the Service Provider hereunder, but expressly excluding any act that would be covered by indemnity from the Service
Provide to the Company as set forth in Section 10(a) hereof.

 

(c)          The
Company will advance amounts to the Service Provider or its Affiliates for legal expenses and other costs incurred as a result
of any legal action for which indemnification is being sought only if all of the following conditions are satisfied: (i) the legal
action relates to acts or omissions with respect to the performance of duties or services on behalf of the Company and (ii) the
Service Provider or its Affiliates undertake in writing to repay the advanced funds to the Company, together with the applicable
legal rate of interest thereon, in cases in which the Service Provider or its Affiliates are found not to be entitled to indemnification.

 

10.         Limitation
on Liability. In no event shall (a) any Party have any liability under this Agreement for any punitive, incidental, consequential
(other than reasonably foreseeable consequential damages), special or indirect damages, including loss of future revenue or income,
loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, or diminution of value or
any damages based on any type of multiple, whether based on statute, contract, tort or otherwise, and whether or not arising from
the other party’s sole, joint, or concurrent negligence, strict liability, criminal liability or other fault or (b) the Service
Provider’s aggregate liability under this Agreement (exclusive of amounts recovered under insurance) exceed an amount equal
to the aggregate fees received by the Service Provider under this Agreement.

 

11.         Notices.
Any notice, report or other communication required or permitted to be given hereunder shall be in writing, and shall be given by
delivering such notice by hand, by certified mail, return receipt requested, postage pre-paid, or by e-mail or facsimile at the
following addresses of the Parties:

 

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	Company:
	 	 
	 	Hospitality Investors Trust Operating Partnership, L.P.
	 	3950 University Drive, Suite 301
	 	Fairfax, VA 22030
	 	Attention: Edward T. Hoganson
	 	 	 

	Service Provider:
	 	 
	 	Crestline Hotels & Resorts, LLC
	 	3950 University Drive, Suite 301
	 	Fairfax, VA 22030
	 	Attention: Pierre Donahue and James Carroll
	 	Fax: (571) 529-6091 and (571) 529-6090
	 	E-Mail: pierre.donahue@crestlinehotels.com
	 	 
	 	With a copy to:
	 	 
	 	Paul, Weiss, Rifkind, Wharton & Garrison LLP
	 	1285 Avenue of the Americas
	 	New York, New York 10019-6064
	 	Attention: Jeffrey D. Marell, Esq.
	 	Facsimile: (212) 492-0105
	 	Email: jmarell@paulweiss.com

 

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Any party may at any time
change its address for the purpose of this section by like notice.

 

12.         Insurance.
The Service Provider shall maintain, at its sole cost and expense, at all times during the Term (and for a period of time continuing
for no less than eighteen (18) months following the Term) a professional liability insurance (errors and omissions) policy with
such coverages and policy as then maintained by the Service Provider and its affiliates and with coverages of no less than $5,000,000.
ARCH, the Company and each of their Subsidiaries shall be a named as “additional insureds” under such policy. All insurance
required to be carried by Service Provider shall be written with companies having a policyholder and asset rate, as circulated
by Best’s Insurance Reports, of A-:VIII or better. On or prior to the date hereof and from time to time upon the Company’s
request, Service Provider shall provide certificates of insurance evidencing such coverage and such other documentation (including
a copy of the policy) as may be requested.

 

13.         Entire
Agreement. This Agreement (together with the Framework Agreement and the other documents contemplated thereby) constitutes
the entire agreement and understanding among the Parties in respect of the subject matter hereof and thereof and supersedes all
prior and contemporaneous arrangements, agreements and understandings, both oral and written, whether in term sheets, presentations
or otherwise among the Parties, or between any of them, with respect to the subject matter hereof and thereof.

 

14.         Miscellaneous.
Sections 11 (Counterparts), 12 (Governing Law; Specific Performance; WAIVER OF JURY TRIAL), 13 (Severability), 14 (Further Assurances),
15 (Parties in Interest), 17 (Headings), 18 (Expenses), 19 (Construction), and Section 22 (Amendments and Waivers) of the Framework
Agreement are incorporated herein by reference, mutatis mutandis.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the
undersigned have caused this Agreement to be executed and delivered as of the date first above written.

 

	 	HOSPITALITY INVESTORS TRUST, INC.
	 	 
	 	By:	/s/ Paul C. Hughes
	 	Name:	Paul C. Hughes
	 	Title:	Authorized Signatory
	 	 	 
	 	HOSPITALITY INVESTORS TRUST OPERATING PARTNERSHIP, L.P.
	 	 
	 	By:  Hospitality Investors Trust, Inc., its general partner 
	 	 	 
	 	By:	/s/ Paul C. Hughes
	 	Name:	Paul C. Hughes
	 	Title:	Authorized Signatory
	 	 	 
	 	CRESTLINE HOTELS &
    RESORTS, LLC
	 	 
	 	By:	/s/ Pierre Donahue
	 	Name:	Pierre Donahue
	 	Title: 	EVP & General Counsel

 

     

     

    

 

Schedule A

 

Services

 

		·	Provide the following services accounting
and tax related services for $25,000 per month for an initial period of 3 months (and subject to Section 4(b), if applicable):

 

		o	Accounting: Assisting REIT’s CFO with the general oversight and direction of REIT baseline Accounting and Treasury teams,
including the design and monitoring of systems, processes, and internal controls, along with staffing and resource planning.

 

		o	Tax: Assisting with

 

		§	all income and franchise tax planning, compliance, tax accounting,
and audits including coordination with PWC and legal counsel

 

		§	the property tax process including compliance, appeals, accounting,
and audits

 

		§	sales tax including with respect to ownership-level issues and coordinating
with management companies on property-level issues affecting the REIT

 

		§	REIT status monitoring process including quarterly and annual REIT
testing

 

		§	income tax provision for the quarterly financial statementsExhibit 10.5

 

ASSIGNMENT AND AMENDMENT
OF CURRENT MANAGEMENT AGREEMENT

 

This Assignment and
Amendment of Current Management Agreement (“Assignment”) is made effective as of March 31,
2017 (“Effective Date”) by and among American Realty Capital
Hospitality Grace Portfolio, LLC, a Delaware limited liability company, with an address at 405 Park Avenue, New York,
New York 10022 (“Assignor”); CRESTLINE HOTELS & RESORTS, LLC, a Delaware limited liability
company, with an address at 3950 University Drive, Suite 301, Fairfax, VA 22030 (“Assignee”); and ARC
HOSPITALITY PORTFOLIO I TRS, LLC, ARC HOSPITALITY PORTFOLIO I NTC TRS, LP, and ARC HOSPITALITY PORTFOLIO I MISC TRS,
LLC (collectively, “TRS”).

 

RECITALS:

 

WHEREAS, on February
27, 2015, on the one hand, ARC Hospitality Portfolio I TRS, LLC and ARC HOSPITALITY
PORTFOLIO I NTC TRS, LP, and, on the other hand, American Realty Capital Hospitality Grace
Portfolio, LLC, entered into a “Management Agreement” (the “Initial Management Agreement”)
with respect to the eighteen hotels listed as “Hotels” on Exhibit A thereto, with a “Management Commencement
Date” (as defined in the Initial Management Agreement) of February 27, 2015; and

 

WHEREAS, on September
1, 2015, the parties to the Initial Management Agreement entered into an Amended and Restated Management Agreement (the “Amended
Management Agreement”), which added ARC HOSPITALITY PORTFOLIO I MISC TRS, LLC (together with the Initial TRS Entities,
“TRS”) as a party, and added ten hotels to Exhibit A thereto as “Hotels”, along with other
minor changes; and

 

WHEREAS, on February
1, 2016, the parties further amended and restated the Amended Management Agreement (the “Second Amended and Restated
Management Agreement”) to add four more hotels to Exhibit A as “Hotels” and to make other minor changes;
and

 

WHEREAS, on October
14, 2016, the parties amended the Second Amended and Restated Management Agreement (the “First Amendment”,
and the Second Amended and Restated Management Agreement following such First Amendment, the “Current Management Agreement”);
and

 

WHEREAS, TRS holds
leasehold title granted by ARC Hospitality Portfolio I Owner, LLC and ARC Hospitality Portfolio I NTC Owner, LP (individually or
as context requires, the “Owner”) of certain real property and improvements more particularly described
on Exhibit A to the Current Management Agreement (individually or collectively, as the context requires, the “Hotel”);
and

 

    	 	 	 

     

    

 

WHEREAS, Assignor desires
to assign its rights and obligations under the Current Management Agreement to Assignee; Assignee desires to accept the assignment
of Assignor’s rights and obligations under Current Management Agreement, as further amended by this Assignment; and TRS desires
to consent to this Assignment and to have Assignee manage and operate the Hotel from and after the Effective Date, in accordance
with the Current Management Agreement as further amended by this Assignment;

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by each of the parties, the parties hereto agree as follows:

 

		1.	Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s rights, title
and obligations in, to and under the Current Management Agreement, and Assignee hereby accepts and assumes all such rights, title
and obligations of Assignor in, to and under the Current Management Agreement. TRS hereby consents to such assignment and assumption.

 

		2.	Each of Assignee and TRS agrees that the Current Management Agreement is hereby further amended
as follows:

 

		a.	All references to “Management Company” shall hereafter be deemed to refer to Assignee.

 

		b.	The definition of “Affiliate” is amended to delete subsection (i).

 

		c.	Section 5.01 is amended by adding the following at the end of the paragraph:

 

Notwithstanding the
foregoing, effective as of the first day of the forty-ninth (49th) month following the defined “Effective
Date” of that certain Assignment and Amendment of Current Management Agreement (the
“Assignment”), dated March 31, 2017 (the “Effective Date” as
defined in the Assignment, the “Assignment Date”, and such first day of the forty-ninth
(49th) month thereafter, the “Sale Termination Right Effective Date”), TRS shall have
the right to Terminate this Agreement with respect to any individual Hotel effective immediately upon a sale of such Hotel
(whether alone or as part of a portfolio transaction, and whether by way of merger, consolidation, or otherwise) so long as,
at or prior to the time of such Termination, either (at TRS’s election) (x) TRS pays, or causes to be paid, to
Management Company an amount in cash equal to (i) the Management Fees earned, due, and payable with respect to such Hotel in
the trailing twelve (12) full months (after normalizing such Management Fees to account for any rooms which may have been
vacant during such period as a result of PIP work or other construction, repair, or improvement work performed at such
Hotel), multiplied by (ii) two and one-half (2.5), or (y) if the sale of the Hotel in question is occurring during the period
prior to the six (6)-year anniversary of the Assignment Date, TRS effects a Property Replacement in accordance with the
immediately following paragraph.

 

    	 	 	 

     

    

 

In addition, if TRS conducts a
sale of any Hotel (whether alone or as a part of a portfolio transaction, and whether by way of merger, consolidation or otherwise)
after the Assignment Date but prior to the date that is six (6) years following the Assignment Date, TRS shall have the right to
Terminate this Agreement with respect to such Hotel if TRS concurrently adds to this Agreement as a “Hotel” a hotel
(“Replacement Hotel”) that (A) was owned by an Affiliate of TRS as of the Assignment Date, and continues
to be owned by an Affiliate of TRS as of the date of the sale of the Hotel in question (the “Sale Date”);
(B) is, at the time of the Sale Date, subject to a management agreement that (I) has a term of one year or less, and/or (II)
includes a right to terminate without cause upon notice of one year or less; and (C) has, as of the Sale Date, the same or greater
historical annual revenue, over the year preceding the Sale Date, as the Hotel that is being Terminated (such addition of a Replacement
Hotel in accordance with this paragraph, a “Property Replacement”).

 

For the avoidance of doubt, any
sale of a Hotel that results in a Termination of this Agreement with respect to such Hotel and also complies with terms and conditions
set forth in this Section 5.01 shall not be subject to the requirements of Section 20.01 of this Agreement.

 

		d.	Section 6.01.A. is amended to replace the entire current provision with the following:

 

In consideration of the services
to be performed during the Term of this Agreement by Management Company, Management Company shall be paid a periodic base management
fee (“Base Management Fee”) in the amount of three percent (3%) of Gross Revenues for each Accounting
Period. Each such periodic fee shall be paid to Management Company (or retained by Management Company as provided below) at such
time as the final monthly report for such Accounting Period is submitted to TRS as provided in Section 6.02 A below.

 

		e.	Section 6.01.C. is deleted in its entirety.

 

		f.	Section 19.01.A. is amended by replacing the period at the end of subsection (iii) with a semicolon,
and by adding the following language as a new paragraph after subsection (iii):

 

Notwithstanding anything in this
Section 19.01.A. to the contrary, Management Company’s rights to assign or transfer its interest in this Agreement or delegate
any responsibilities hereunder shall remain subject to satisfaction of all applicable rights of first refusal or similar obligations
under that certain “Framework Agreement”, by and among American Realty Capital Hospitality Advisors, LLC, American
Realty Capital Hospitality Properties, LLC, American Realty Capital Hospitality Grace Portfolio, LLC, Crestline Hotels & Resorts,
LLC, American Realty Capital Hospitality Trust, Inc., American Realty Capital Hospitality Operating Partnership, L.P., American
Realty Capital Hospitality Special Limited Partnership, LLC and for certain limited purposes Brookfield Strategic Real Estate Partners
II Hospitality REIT II, LLC, dated January 12, 2017 (the “Framework Agreement”) and no assignment, transfer
or delegation by the Management Company shall be permitted hereunder without compliance with such provisions of the Framework Agreement.

 

    	 	 	 

     

    

  

		g.	Section 20.01 is amended to add the following at the end of such section:

 

Notwithstanding the foregoing and
for the avoidance of doubt, the terms and conditions set forth in this Section 20.01 of this Agreement shall not apply in the event
that any sale of a Hotel that results in a Termination of this Agreement with respect to such Hotel otherwise complies with terms
and conditions set forth in Section 5.01.

 

		h.	Section 22.08 is amended

To TRS:

ARC Hospitality Portfolio I TRS,
LLC

ARC Hospitality Portfolio I NTC
TRS, LP

ARC Hospitality Portfolio I MISC
TRS, LLC

3950 University Drive, Suite 301

Fairfax, Virginia 22030

Attention: General Counsel

 

To Management Company:

Crestline Hotels & Resorts,
LLC

3950 University Drive, Suite 301

Fairfax, Virginia 22030

Attention: General Counsel

 

		3.	This Assignment is executed by, and shall be binding upon and inure to the benefit of, the parties
hereto and each of their respective administrators, personal representatives, legal representatives, heirs, successors and permitted
assigns. None of the provisions of this Assignment shall be for the benefit of or enforceable by any other person.

 

		4.	This Assignment may not be amended nor may any rights hereunder be waived except by an instrument
in writing signed by the parties sought to be charged with such amendment or waiver.

 

		5.	This Assignment may be executed in one or more counterparts, each of which shall be deemed an original
and it will not be necessary in making proof of this Assignment or the terms of this Assignment to produce or account for more
than one of such counterparts. All counterparts shall constitute one and the same instrument. Each party may execute this Assignment
via a facsimile (or transmission of a .pdf file) of this Assignment. In addition, facsimile or .pdf signatures of authorized signatories
of the parties shall be valid and binding and delivery of a facsimile or .pdf signature by any party shall constitute due execution
and delivery of this Assignment.

 

    	 	 	 

     

    

 

		6.	Except as specifically modified by this Assignment, all of the provisions of the Current Management
Agreement are unchanged and continue in full force and effect. In the event of any conflicts between the Current Management Agreement
and this Assignment, this Assignment shall control.

 

[Signatures Follow on Next Page]

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Assignment to be executed and delivered by their duly authorized officers as of the Effective
Date.

 

	 	ASSIGNOR:
	 	 
	 	American
Realty Capital Hospitality Grace Portfolio, LLC, a Delaware limited liability company

	 	 
	 	By: 	/s/ James
    A. Tanaka
	 	 	Name:  	James A. Tanaka 

	 	 	Title: 	Authorized Signatory
	 	 	Date:	March 16, 2017

 

	 	ASSIGNEE:
	 	 
	 	CRESTLINE
HOTELS & RESORTS, LLC, a Delaware limited liability company

	 	 	 
	 	By: 	/s/ James
    A. Carroll
	 	 	Name:  	James
    A. Carroll
	 	 	Title: 	President & CEO
	 	 	Date:	March 10, 2017

 

	TRS:	 
	 	 
	 	ARC
                                                                              Hospitality Portfolio I TRS, LLC, a Delaware
                                                                              limited liability company

	 	 	 
	 	By: 	/s/ Paul C. Hughes
	 	 	Name:  	Paul C. Hughes
	 	 	Title: 	Authorized Signatory
	 	 	Date:	March 17, 2017

  

    	 	 	 

     

    

  

	 	ARC Hospitality Portfolio I NTC TRS, LP, a Delaware limited partnership
	 	 
	 	By: 	ARC HOSPITALITY PORTFOLIO I NTC TRS GP, LLC,
its general partner

	 	 	 
	 	By: 	/s/ Paul C. Hughes
	 	 	Name:  	Paul C. Hughes
	 	 	Title: 	Authorized Signatory
	 	 	Date:	March 17, 2017

 

	 	ARC
                                                                                          Hospitality Portfolio I MISC TRS, LLC, a Delaware limited
                                                                                          liability company

	 	 	 
	 	By: 	/s/ Paul C. Hughes
	 	 	Name:  	Paul C. Hughes
	 	 	Title: 	Authorized Signatory
	 	 	Date:	March 17, 2017

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