A hotel or motel establishment may qualify as an exempt retail or
service establishment under section 13(a)(2) of the Act. However, the
establishment must meet all of the requirements of section 13(a)(2) (see
Sec. 779.337). In determining whether an establishment is a retail or
service establishment within the meaning of section 13(a)(2) the dollar
volume received from the leasing or rental of space to other than
transient members of the general public cannot be counted as derived
from retail sales of goods or services. Therefore, receipts from tenants
who are not transient
guests (see Sec. 779.383(c)) must be included in the 25 percent
tolerance provided for sales for resale or sales not recognized as
retail.
