The lodging industry in the United States has been in existence for a long time and over the course of the past nine decades, it has followed certain protocols with regards to financial reporting. During that period, the US lodging industry has used the USALI protocol for its financial reporting purposes. However, things could be about to change soon. In a new development, it has emerged that the American Hotel & Lodging Association (AHLA) and Hospitality Financial and Technology Professionals (HFTP) have come together to form a committee.
The aim of the committee is to update as well as expand the scope of the existing 11th edition of the USALI. The committee is going to work on the 12th edition and it will ensure that the protocols are at par with the US as well as the international standard. It is believed that the 12th edition of the USALI is going to go on to become the globally accepted standard of financial reporting for the lodging industry. The name of the committee that has been formed is the Global Finance Committee (GFC) and it is going to be made up of the finance executives from some of the best-known hotels in the world.
Some of the participating hotels include Hyatt International, Intercontinental Hotels & Resorts and Marriott International among others. The CEO of HFTP Frank Wolfe spoke about the need for updating the financial reporting protocols. He said,
As the lodging industry evolves and grows, our goal is to continue to keep the USALI as the standard for financial professionals in brand, owner and management companies, as well as for the lending and investment community.
The USALI had first been devised back in 1926 and during that period, it provided hotel owners and managers with a standardized financial reporting format specific to the lodging industry.
Last year, HFTP bought the copyright to the format and now it is looking for ways to improve it substantially. The Chief Financial Officer of the Pebblebrook Hotel Trust, Raymond D. Martz and Vice President of Asset Management for Hyatt, Gina Tallarico, are going to be co-chairs of the GFC. However, the whole thing will need a considerable period of time to be completed and it is believed that it would not happen until the end of 2022.