Key Takeaways for Hotel Accounting Teams in Adopting the New USALI Standards

The deadline for hotel organizations to update their accounts using this newest set of guidelines is January 1, 2026. Many will want to have all updates in place before they begin 2026 budget season in the fall of 2025.

One of the most important events in the hospitality industry occurred this summer at HITEC. HFTP (Hospitality Financial and Technical Professionals) published the highly anticipated Uniform System of Accounts for the Lodging Industry – 12th Revised Edition. The Global Finance Committee (GFC), a joint committee of HFTP and AHLA (American Hotel and Lodging Association) established in 2018, created this updated version of USALI and is responsible for the content in subsequent revised editions.

As stated in the document, “For the 12th Revised Edition, the GFC reaffirmed that the primary purpose of the USALI is to provide operating statements that are formatted to provide hotel owners, managers and other interested parties with information and data that are pertinent to the unique operating environment of the lodging industry…The USALI is periodically revised to reflect changes in industry practice and to address issues that arise as the industry develops.”

Below is a general description of some of the changes outlined in the 12th Revised Edition; for more detailed information, please read the full report at usali.hftp.org. I highly recommend that hoteliers and their finance teams review the full document and talk with their back office and accounting providers about beginning the steps to adopt the updated standards therein. The deadline for hotel organizations to update their accounts using this newest set of guidelines is January 1, 2026. Many will want to have all updates in place before they begin 2026 budget season in the fall of 2025.

As noted in the most recent edition, “A uniform system of accounts establishes standardized formats and account classifications to guide individuals in the preparation and presentation of operating and financial statements. A system like this was first distributed for the lodging industry in 1926, known as the Uniform System of Accounts for Hotels. (These guidances allow) internal and external users of operating and financial statements to compare the financial position and operational performance of a particular property with similar types of properties in the lodging industry.”

As you can see, for those of us that focus on back office and accounting solutions for hotels, the newest USALI revision is very important to us and our hotel customers. This most recent edition is divided into six parts in the following order: Operating Statements; All-inclusive (new section); Other Reporting Guidance; Financial Statements; Metrics, Ratios and Optional Schedules; and Revenue and Expense Directory.

Part I outlines the financial reports including the format and department line items required by a lodging property to analyze operations and produce accurate reports. (One note: The statements in Part I refer to full-service lodging properties including food and beverage venues and other offerings. However, limited-service properties can easily adapt by deleting any schedules that do not apply to them or any unrelated line items, or if more detail is needed, they can prepare subaccounts or subschedules and record them in the related line items outlined by the USALI.)

Part II is a new section, focused on all-inclusive properties specifically, while Part III is centered around reporting and offers recommendations for gross and net reporting; surcharges, gratuities and service charges, and how to handle them; lease accounting; and government subsidies. Part IV outlines statement formats and gives further details on the line items under general financial statements produced for external users such as lenders and stockholders. Per the full report, statements include: Balance Sheet, Statement of Comprehensive Income, Statement of Cash Flows, Statement of Income, Statement if Owners’ Equity, and Notes to the Financial Statements.

The remaining two parts include Part V, a detailed review of the metrics, ratios and optional schedules utilized for financial and operational statement analysis under Parts I, II and IV; and Part VI, an extensive glossary of terms that fall under revenue and expense.

Again, for a more comprehensive look at USALI 12, it is best to review the full report at usali.hftp.org, but below is a highlight of just a few of the most recent updates from the report.

First, some changes we noted right off the bat: Utilities was changed to Energy, Water, and Waste; and In-Room Entertainment Systems expense was moved to Information and Telecommunications Systems. Additionally, Waste Removal was moved to the new Energy, Water, and Waste Schedule; while Minibar Food and Beverage line items were moved to the Other Operated department.

With regard to Miscellaneous Income, Resort fees changed to Destination, Resort, and Urban Fees; and further guidance was offered for proper classification of lease revenue from F&B outlets, and areas including extraordinary cleaning fees, guest-related foreign currency transaction gains (losses), promotional credits, and space rental and concessions.

Additionally, Lease Income was a big focus under Nonoperating Income and Expense, as well as clarifications in Cost Recovery Income and Business and Occupation Taxes. Under HR, two new accounts were added: Human Resources – Recruitment/Relocation, and Human Resources – Employee Relations; and under Annual Mandatory Brand and Operator Costs, a new schedule was added to better clarify costs required by a brand or operator including mandatory programs, systems, and services.

In reference to Sales and Marketing, paid search, display and social were added to further identify tools used to market hotel properties. While Loyalty Programs was redefined, the new Loyalty Programs – Promotion was created to better capture loyalty points related to promotions. Also in this category, Media was changed to Advertising – Print, Radio, and TV.

In addition to these updates, you will find several Enhanced Definitions and Clarifications as well as Added Subschedules and Other Updates in the full report. The Aptech team found several of the updates in the full 12th Revised Edition highly useful and have begun working with our hotel clients to prepare for the January 1st, 2026, deadline. It’s hard to believe that it will mark 100 years after the first version of the Uniform System of Accounts for Hotels was published by the Hotel Association of New York City. We are grateful for organizations like HFTP and AHLA that offer continued resources, support and education to the hospitality industry. For more information about USALI 12, please visit usali.hftp.org. If you are an Aptech customer and have questions about USALI 12, please contact our team at +1 412-963-7450 or [email protected].

About the Author

Jill Wilder is President of Aptech Computer Systems Inc., the only provider of a fully integrated enterprise accounting, business intelligence and planning ecosystem to the hospitality industry. Aptech’s Business Intelligence, Enterprise Accounting, and Budgeting & Forecasting solutions help hoteliers at the corporate and property levels understand their financial and operational data for faster goal achievement. Aptech offers a 24/7/365 live support desk to all of its hotel customers across North America.

Connect with Jill on LinkedIn.