Practical USALI

Contract housekeeping in A&G: If a property switched to an agency mid-year and the invoices came through accounts payable coded to a generic vendor GL, they may land in A&G or Other Expense instead of Rooms. Look for A&G spikes paired with Rooms labor savings in the same period.

OTA commissions split across departments: Some properties code OTA commissions to Sales & Marketing rather than Rooms. If you're benchmarking Rooms expense ratios across properties, confirm where each property codes distribution costs before comparing.

Resort fees: Resort fee revenue may post as Rooms Revenue (correct for most flag standards), Miscellaneous Income, or as a cost offset. The treatment affects ADR and RevPAR comparability. Ask before you compare.

E&P (Entertainment & Promotion / Employee Meals): Employee meals are technically a cost of food sold, but they're often tracked as an E&P or promotional expense line. They reduce Food Revenue (or post as a direct expense) depending on the system. The treatment affects COGS percentages ”” know whether the hotel you're looking at nets employee meals from revenue or expenses them separately.

Service charges: In states where auto-gratuities must be distributed to employees, they pass through both revenue and expense (wash). In states where management can retain them, they're pure revenue. The treatment affects total F&B revenue comparability across properties in different states.

Banquet labor billed to groups: Some hotels bill labor charges as a line item on banquet event orders. These appear as F&B revenue and are offset by the corresponding labor cost ”” but if the billing is in a different period than the labor cost, they'll look like a timing distortion in the monthly numbers.

GM salary in Rooms: Some older management systems or non-USALI properties code the GM to Rooms because the GM "oversees" front desk. Under USALI, the GM is A&G. If you're comparing Rooms expense ratios with a property that codes differently, you'll see a big swing in A&G that doesn't show in Rooms.

Brand fees: Base brand fees (royalty/franchise fees) can post in A&G or Sales & Marketing depending on the management company's chart of accounts. Confirm before comparing undistributed departmental ratios across brands.

Guest relocation spikes: A sudden jump in Guest Relocation often hides in A&G and is easy to miss in a top-line review. It's always worth asking about when A&G runs over ”” it may point to an unreported service failure (A/C outage, pest issue, room quality problem) that has guest satisfaction and reputation implications beyond the dollar amount.

IT vs. A&G boundary: At properties that haven't fully converted to USALI 11+ structure, IT costs may still be coded in A&G. When comparing total overhead across hotels, always check whether IT is a separate line or embedded in A&G before drawing conclusions about either department's size.

PMS computer hardware: Computer hardware (desktops, tablets, printers) can post in IT or in A&G ”” or occasionally in the department that uses the equipment (a kitchen printer in F&B). Clarify the property's convention before investigating a hardware purchase as an IT anomaly.

Revenue manager in Sales vs. Rooms: Some properties place the revenue manager's salary in Sales & Marketing; others place it in Rooms. Neither is wrong under USALI, but it affects departmental ratios. When Rooms labor looks lower than expected at a comp property, check whether their RM posts elsewhere.

Brand fees split across departments: Base royalty fees, program fees (Marriott Bonvoy, Hilton Honors), and system contribution fees are often three separate line items that can post in Sales & Marketing, A&G, or IT depending on the management company's policy. Before concluding a property has lower brand cost exposure, verify the full fee stack and where each piece lands.

Costs coded below GOP that belong above it: Occasionally management companies or accounting staff code costs below the GOP line that USALI places above it. Any cost that the operator incurs and has some ability to manage should sit above GOP. If something shows up in "Other Expense" below management fees that looks like an operating cost, ask where it should be.

EBITDA before vs. after reserve: Some ownership groups report EBITDA with the FF&E reserve deducted; others report it before the reserve and show reserve separately. This can create a 4”“5% of revenue difference in reported EBITDA. Always confirm the convention when comparing across properties or against industry benchmarks.