Warning – this blog post talks about cruelty to cats. I in no way support this practice and I am not promoting the activity in any way. The purpose of this article is to tell a story around the financial controls for hotel paid outs. Even with the disclaimer I am pretty sure I’ll get some flack, but the story is worth it!
The Global Finance Committee (GFC), a committee of diverse industry professionals sponsored by the Hospitality Financial and Technology Professionals and the American Hotel and Lodging Association is responsible for the production of the Uniform System of Accounts for the Lodging Industry (USALI). The revised 12th edition USALI is scheduled to be effective in 2026. USALI is the global standard for financial reporting in the lodging industry and will feature important changes to financial reporting practices.
At the recent annual meeting of Cayuga Hospitality Consultants, we brought together a panel of experts to discuss the state of transactions and development in the hotel industry. Here is a look into some of the key topics and points from the panel.
I discuss this question with hoteliers way too often. It’s not their fault, but the reality is they don’t understand what this statement means and, in this piece, I’m going to lay it out for you. I will say that the lack of understanding and basic ignorance of this is a costly and completely avoidable expense if you just do a little digging and ask the right questions.
As we all continue to find our footing in today’s market, we remain encouraged by the level of interest we have seen from offshore capital looking to invest in U.S. hotel assets, with the driving factors being their search for yield, stability, and growth.
There are lots of trends in current hotel development worth covering, but many of them can best to described by analyzing one specific project to see how the developers and owners are applying this trend on the ground and in a practical manner. The one word to wrap your head around for this is ‘flexibility’ wherein developers are looking to adapt room configurations, onsite facilities and ongoing operations to better accommodate a wider variety of guest types while simultaneously value-adding their experiences for greater overall folios.
In this article, we discuss moral hazard and regulatory measures, such as capital requirements, to stave off a banking crisis. We then introduce a model we have developed where we analyze the trade-off between competition to attract depositors and cooperation to enhance liquidity. We evaluate different policy tools with the objective of promoting financial stability.
What could be safer than a Swiss bank? This article takes a deep dive into what Swiss authorities are doing to restore confidence in the country’s banking system. As discussed in a previous article, the Public Liquidity Backstop (PLB) is a measure implemented by the Swiss government to insulate the country’s banking system from a run on its systemically-important banks. Designed prior to the involuntary merger between Credit Suisse and UBS, the PLB will, at long last, go into effect in 2025. Yet, the measure could have unintended consequences that need to be fully considered. So how did Credit Suisse (CS) collapse in the first place?
The new e-invoicing mandate in Germany marks a major shift for hospitality businesses, driven by the European Union’s directive to standardise electronic invoicing in business to business procurement. Designed to streamline processes and reduce administrative burdens across member states, this regulation will affect how invoices are issued, processed, and archived—bringing both challenges and exciting opportunities for the hospitality sector. Here's a look at what this shift means and how it can enhance operations and guest experiences.
From property management systems to guest apps and revenue management software, there’s so much out there to help hotels digitise operations that the tech market is overwhelming decision-makers. But what are the three things hoteliers are really looking for in technology today?
Now I bet you’re wondering, excuses for what? Excuses for not jumping in the deep end with the financials in your hotel career. What’s your imagination telling you that’s wrong in your hotel that holds you back from owning your departmental expenses and payroll? What is the magic fairy dust that someone dumped on you that keeps you on the sidelines?
Major cities in the Southeast like Charleston, Atlanta, Savannah, and Raleigh-Durham remain strong hotel investment markets due to their thriving tourism, growing business hubs, and strategic locations. Enhanced financing options are expected to boost transaction volumes. Significant construction pipelines and improving economic conditions highlight the region's long-term resilience and investment appeal.
Ownership and influential stakeholders are entitled to make changes to hotel projects. It’s their dream and foresight that you are delivering.
Hoteliers are starting to realise that room rates alone can’t drive the profits they need. As many reach a ceiling when it comes to average daily rates (ADR), there’s a question mark hanging over how to boost the bottom line. It has to come from other revenue streams, but many are struggling to make this work. Here’s a closer look at where the opportunities lie.
Managing supply chains for a variety of distinct operations is complex and highly analytical yet often lacks the prestige of the rooms division, front office, F&B or spa. Still, it’s essential; if housekeeping represents the proverbial ‘heart of house’ then perhaps procurement is its ‘gastrointestinal tract’, the processing center for all raw goods ingesting.
Ahh, budget season… a time every hotelier knows all too well. It’s that annual crunch when departments scramble to justify their numbers, and finance teams work around the clock, pulling their hair out trying to predict next year’s revenue.
The business world is an eternal cycle of reinvention, where actors adapt to market conditions by establishing a new ecosystem that appears most relevant. Hospitality investors are no exception. Along the way, they’re integrating today’s new data for value creation into a 3.0 model that revives interaction over specialization.
A capitalization rate, or cap rate, is a measure of the income return on an asset, such as hotel or rental property, relative to its purchase price. It is calculated by dividing the net operating income (NOI) of the asset by its purchase price. That’s what this piece is all about. It also must be said from the get-go that understanding cap rates is not so difficult.
On March 16, 2023, the Federal Council of Switzerland declared an emergency order introducing the Public Liquidity Backstop (PLB)1. In doing so, the Swiss National Bank (SNB) granted a CHF 100 billion loan to Credit Suisse (federal default guaranteed)2. In September of the same year, the Federal Council also presented its (provisional) draft bill concerning the PLB for banks of systemic importance3.
The Fed recently gave us a surprise similar to the one my grandfather used to give my father. My father recently recounted to my son how his grandfather would give him a quarter and a Dr. Pepper each time he saw him. Occasionally, he would surprise him with a half dollar instead, and my father would be thrilled.