Fairmas has published an article on how a standardized financial structure, such as the Uniform System of Accounts for the Lodging Industry (USALI), supports better financial planning and analysis. Fairmas notes that HFTP publishes and owns USALI, and that it uses the term only to refer to the industry standard as one of several possible company-specific P&L frameworks.

A common financial language

USALI gives hotels a shared way to organise and compare financial information across departments, properties and portfolios. Fairmas says FairPlanner turns that language into a connected process for budgeting, forecasting, controlling and performance reporting, so teams work from the same foundation throughout the planning cycle.

The two-hotel example

Fairmas describes two hotels with similar revenue where one achieves a higher GOP margin. Without a consistent structure, it is hard to tell whether the gap is real or caused by different allocations of payroll, utilities or marketing. That complicates comparisons for finance directors, variance analysis for controllers, and investment decisions for owners. With a consistent framework, departments such as Rooms, F&B and A&G can be compared using the same logic.

From reporting to planning

Fairmas argues historical reporting should be the starting point for the next budget and forecast. Because actuals, budgets and forecasts follow one structure in FairPlanner, controllers can quickly ask whether differences stem from occupancy, rate, payroll, utilities or allocation, and forecasts can be updated without rebuilding the model.

Across the portfolio

Without a common structure, each property may need its own mapping before consolidation, which becomes harder as portfolios grow. A standardized P&L framework lets teams compare departmental budgets, payroll assumptions and utility costs across hotels while still accommodating individual properties.

Turning variances into action

If a hotel misses its GOP forecast despite hitting revenue, a shared structure lets controllers review variances by department and account and decide whether the forecast needs updating, so the portfolio team can move from observing a gap to acting on its cause.

Originally published by Fairmas: Fairmas on Why a USALI-Based Structure Strengthens Hotel FP&A