USALI: recognised hotel accounting standards
The Uniform System of Accounts for the Lodging Industry, published by AHLA, has standardised hotel operating accounts globally since 1926. The 11th edition (2014) remains the worldwide reference. Structure: revenue by department (Rooms, F&B, Other), charges by department, undistributed charges (A&G, marketing, maintenance, energy), GOP, fixed charges, EBITDA.
GOP and margin: benchmark comparison
GOP (Gross Operating Profit) is the key operator performance line. Typical GOP margins: budget 30-40%, midscale 28-35%, upscale 25-32%, luxury 20-28%. A GOP below range signals operational inefficiency (over-staffing, uncontrolled energy, high food cost). The tool automatically compares your projection to the chosen category.
FF&E reserve: 4% required in bank valuation
Furniture, Fixtures & Equipment: reserve for replacing furniture, linen, TV, IT, small equipment. 4% of total revenue is the standard required by banks and USALI for any valuation. A hotel claiming EBITDA = GOP without FF&E deduction overstates its result by about 15-25%.
Frequently asked questions
Is the forecast conservative or optimistic?
The tool applies average USALI ratios for the chosen category. For a prudent forecast required by a bank, increase staff by 2-3 points and lower ADR by 5%. For an aggressive investor business plan, the reverse.
How to project ramp-up of a new hotel?
Year 1: 50-55% occupancy. Year 2: 60-65%. Year 3-5: 65-75% (stabilised). ADR grows 2-3%/year via inflation + repositioning. The tool manages this curve via 'ADR growth' and 'occupancy progression' parameters.
F&B: profitable revenue or cost?
Strongly category-dependent. Budget: F&B often loss-making (breakfast included), contributes via differentiation. Midscale: F&B at break-even. Upscale/Luxury: F&B can contribute 15-25% of total GOP if the restaurant attracts clients beyond hotel guests.