What is USALI?
The Uniform System of Accounts for the Lodging Industry (USALI) is a guideline developed to provide a consistent framework for financial reporting in the hotel and lodging industry. Initially developed by the Hotel Association of New York City in 1926 and currently maintained by the Hospitality Financial and Technology Professionals (HFTP), it aids in standardizing the presentation of financial information, enabling comparability, benchmarking, and performance assessments across different properties and entities.
USALI helps stakeholders in the lodging industry, including owners, operators, and investors, to better understand financial performance and make more informed decisions. It covers various aspects of financial accounting, including revenue collation, expense reporting, consolidated financial statements, departmental profit, and loss statements, among others.
Examples of USALI Components:
- Rooms Revenue Reporting: Segments revenue by different room categories, guest types, and booking sources to assess performance in specific areas.
- Departmental Expenses: Provides detailed classifications of departmental expenses to separately analyze costs for rooms, food and beverage, administrative departments, and more.
- Operating Metrics: Includes guidelines for reporting key performance indicators (KPIs) such as Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Occupancy Rates.
Frequently Asked Questions (FAQs)
What is the purpose of USALI?
USALI aims to standardize financial reporting in the hotel industry, ensuring consistency and allowing for better trend analysis and benchmarking.
Who uses USALI?
Hotel owners, operators, investors, accountants, auditors, and other financial professionals within the hospitality sector use USALI.
How often is USALI updated?
USALI is periodically updated to reflect changes in accounting practices, industry trends, and regulatory requirements. The 11th edition, published in 2014, is the latest available version.
What are the benefits of using USALI?
USALI improves financial transparency, enhances comparability of financial data, aids in efficient financial management, supports strategic decision-making, and fosters accountability within the lodging industry.
Related Terms
- ADR (Average Daily Rate): A key performance metric in the hotel industry, calculated as the average rental income per paid occupied room in a given time period.
- RevPAR (Revenue Per Available Room): Measures the revenue earned per available room, combining both the occupancy rate and ADR.
- Occupancy Rate: The percentage of available rooms that are occupied over a specific period.
- GOP (Gross Operating Profit): The profit a hotel makes from its operations before subtracting taxes, interest, rent, and insurance.
- FOH (Front of House): Refers to the areas of a hotel or restaurant where staff interact directly with customers.
Online Resources
- Hospitality Financial and Technology Professionals (HFTP) USALI Information
- American Hotel & Lodging Association (AHLA)
- Professional Association of Innkeepers International (PAII)
References
- Hotel Association of New York City. (2014). Uniform System of Accounts for the Lodging Industry, 11th Edition.
- Hospitality Financial and Technology Professionals (HFTP). (n.d.). Uniform System of Accounts for the Lodging Industry.
Suggested Books for Further Studies
- Schmidgall, R. S., & Andrew, W. P. (2013). Hotel Investments: Issues & Perspectives, 4th Edition. Educational Institute.
- Cote, R. (2015). Accounting for Hospitality Managers, 6th Edition. America Hotel & Lodging Educational Institute.
- Jagels, M.G., & Ralston, C. (2006). Hospitality Management Accounting, 9th Edition. Wiley.
