Hotels & Inns
RevPAR, ADR, and departmental margin — finally in one clean P&L.
Independent hotels and B&Bs earn from rooms, food and beverage, events, and ancillaries — each recognized and taxed differently. We build books that map your USALI-structured P&L so you know which department is carrying the property and which is dragging it.
Why hotel books break standard accounting
Rooms is not your business. Rooms, F&B, events, and ancillaries are.
A hotel stacks real estate, hospitality, food service, and event production on one property — and each hits the books differently under USALI.
Departmental P&L vs. blended revenue
USALI separates rooms, food and beverage, events, and other operated departments. Running a single blended P&L hides which departments cover fixed costs and which don't.
OTA commissions as contra-revenue
Booking.com and Expedia commissions are often booked as marketing expense rather than contra-revenue, overstating ADR and making channel profitability invisible.
FF&E reserve as operating reality
Furniture, fixtures, and equipment replacement is a predictable capital cost that belongs in the operating forecast — not as a surprise below-the-line hit when the lobby needs a refresh.
Lodging tax by jurisdiction
State, county, and municipal lodging or occupancy taxes apply at different rates and remittance schedules. One blended rate across jurisdictions is an audit waiting to surface.
Where the real margin hides
Four departments, four margins. Most independent hotels track one.
A hotel isn't a room rental — it's rooms, F&B, events, spa, and parking on one property. Each department is recognized and taxed its own way under USALI.
The seasonal truth
Peak season fills rooms. Off-season is where hotels actually live or die.
Occupancy spikes in summer; debt service, insurance, property tax, and core staff cost money all twelve months. We model the full-year curve — and the group business and packages that carry the shoulder season — so you know how far peak-season cash has to stretch before the next wave.
The hotel tax playbook
The deductions a single-department P&L hides.
A hotel isn't taxed like an office building. Handled right, cost segregation and entity structure can meaningfully change your tax position — handled wrong, lodging tax errors create compounding liability.
Cost segregation on hotel property
Personal property (FF&E, carpeting, specialized lighting) and land improvements can depreciate over 5–15 years rather than 39 — front-loading deductions in the early years of ownership.
FF&E reserve & bonus depreciation
Furniture, fixtures, and equipment replacement qualify for accelerated depreciation; reserving and tracking FF&E spend correctly unlocks these deductions each year.
Occupancy & lodging tax compliance
State, county, and municipal transient occupancy taxes apply at stacked rates with separate remittance schedules; OTA-collected taxes require reconciliation against what you remit.
F&B and ancillary sales tax
Food and beverage, spa services, gift shop, and resort fees each carry different sales tax treatment by state — we map every line to its correct rate.
Opco / propco separation
Separating the operating entity from the real property entity provides liability protection and creates a management-fee structure that can shift income between entities.
Real estate professional & passive loss
Qualifying as a real estate professional or aggregating hotel and other RE activities can allow passive losses to offset ordinary income — a meaningful lever for owner-operators.
What we actually run for you
Every service mapped to a hotel problem.
The problem
Books wired to your PMS
We reconcile rooms, F&B, and ancillary revenue straight from Cloudbeds, Opera, Mews, or your PMS — USALI-structured, departmental, every month — not just at tax time.
The problem
RevPAR and cash-flow forecasting
Model occupancy curves, ADR by channel, and whether the next renovation or FF&E cycle actually pencils before you commit the capital.
The problem
Lodging, sales & occupancy tax
Multi-jurisdiction filing across state, county, and municipal lodging taxes — reconciled against OTA-collected amounts, remitted correctly.
The problem
Cost segregation & depreciation planning
Put FF&E, land improvements, and specialized systems in their right class and model the deduction before you elect it.
Buying or selling a hotel?
Numbers that survive due diligence.
Whether you're underwriting an acquisition or getting a boutique hotel sale-ready, we build financials lenders and buyers actually trust.
The numbers we put in front of you
Run the hotel on operator metrics, not just a P&L.
Reporting built for hospitality operations — the KPIs that tell you whether to adjust rate strategy, cut OTA reliance, or remodel a department.
Figures shown are illustrative.
Keep exploring
Go deeper — or just talk to us.
Talk to someone who's read a hotel P&L before.
A 30-minute call. Bring last year's departmental numbers and your PMS export — we'll show you what your books should be telling you, then map out where we can help, on a free intro call.
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