Hospitality Finance
Hotel KPIs, USALI and bank account structure
- ADR: average daily rateDefinition, formula, pricing strategy, ADR Index and mistakes hotel executives should avoid
- Occupancy %: the basic KPI that shows hotel demandHow to calculate occupancy under the USALI definition, the trade-off with ADR and how to track it in hotel management
- RevPAR: a guide for hotel executivesThe RevPAR formula, RGI, bridge analysis, channel mix and Net RevPAR, with worked examples
- TRevPAR: total revenue per available roomRead TRevPAR alongside RevPAR to see a hotel's business model and its opportunities to grow revenue
- GOI vs GOP: the two hotel marginsSeparating GOI from GOP, the P&L structure, how they are used in the HMA and a diagnostic framework for when profit declines
- USALI: from the 11th to the 12th editionThe structure of USALI, the status of the 11th edition and the changes in the 12th edition, effective from 2026
- International standards for the hospitality businessStandards framework for hotels, restaurants and wellness in investment-grade resort projects
- Accounting for room revenue via OTAs under TFRS 15Recording merchant/agency models, VAT reverse charge, WHT and channel cost analysis
- Treasury policy framework for hotelsA treasury policy template for hotels covering accounts, cash, FF&E loans, the HMA and controls
- A 7-account bank structure for hotelsSeparating accounts by purpose, with the waterfall and its effect on a hotel's free cash flow
- Bank account structure for Thai SMEsHow to separate accounts by purpose and get started according to business size, for Thai SMEs
- Working Capital at 4% of revenue: a rule of thumbThe origin of the 4% working capital assumption for hotels, with a days-based calculation
- High revenue but low profit: where did the GOP go?Use flow-through and a line-by-line variance table to find where a hotel's additional revenue leaks away before reaching GOP
- HMA: what hotel owners must readReading the Hotel Management Agreement from the owner's side: every layer of fees, the Owner's Priority, the performance test and the cost of termination
- RevPAR Index: auditing the operator against market figuresBreaking RGI down into MPI and ARI, checking the choice of comp set and testing the effect of the performance test thresholds in the HMA