23/08/2026
USALI stands for Uniform System of Accounts for the Lodging Industry. It is the standardized accounting/reporting system used by hotels to classify revenue, departmental expenses, undistributed expenses, and profit.
In simple terms, USALI helps you understand exactly where a hotel's money is earned, where it is spent, and how much profit each department contributes.
1. Basic structure of a USALI hotel P&L
A typical hotel P&L is organized like this:
Section
Examples
Operating Revenue
Rooms, F&B, Other Operated Departments
Departmental Expenses
Room payroll, housekeeping supplies, F&B food cost, F&B payroll
Departmental Profit
Department Revenue − Department Expenses
Undistributed Expenses
Admin, Sales & Marketing, IT, Maintenance, Utilities
Gross Operating Profit (GOP)
Departmental Profit − Undistributed Expenses
Fixed Charges
Property tax, insurance, rent/lease, etc.
Profit Before Tax / Net Income
GOP − fixed/non-operating charges
2. Ex. Rooms Department
Suppose your hotel has:
· 20 rooms
· 60% occupancy
· ADR = ₹2,000
· 30 days
Available room nights:
20 × 30 = 600
Occupied room nights:
600 × 60% = 360
Room Revenue:
360 × ₹2,000 = ₹7,20,000
Now suppose Rooms Department expenses are:
· Front Office payroll = ₹80,000
· Housekeeping payroll = ₹70,000
· Linen & laundry = ₹25,000
· Guest supplies = ₹15,000
· Other departmental expenses = ₹10,000
Total Rooms Department Expenses = ₹2,00,000
Therefore:
Rooms Department Profit = ₹7,20,000 − ₹2,00,000 = ₹5,20,000
Rooms Department Profit Margin = ₹5,20,000 ÷ ₹7,20,000 × 100 = 72.22%
3. F&B calculation
Suppose:
Restaurant Revenue = ₹5,00,000
Expenses:
· Food cost = ₹1,50,000
· Beverage cost = ₹40,000
· F&B payroll = ₹1,20,000
· Other departmental expenses = ₹30,000
Total F&B expenses = ₹3,40,000
Therefore:
F&B Departmental Profit = ₹5,00,000 − ₹3,40,000 = ₹1,60,000
F&B Profit Margin = 32%
4. Then we calculate GOP
Suppose your total departmental results are:
Depart. Revenue, Department Expenses, Department Profit
Rooms ₹7,20,000 ₹2,00,000 ₹5,20,000
F&B ₹5,00,000, ₹3,40,000,₹1,60,000
Other ₹50,000,₹20,000,₹30,000
Total ₹12,70,000,₹5,60,000,₹7,10,000
Then you deduct Undistributed Operating Expenses:
· Administration & General = ₹60,000
· Sales & Marketing = ₹40,000
· Repairs & Maintenance = ₹35,000
· Utilities = ₹50,000
· IT/Systems = ₹15,000
Total = ₹2,00,000
So:
GOP = ₹7,10,000 − ₹2,00,000 = ₹5,10,000
GOP Margin = ₹5,10,000 ÷ ₹12,70,000 × 100 = 40.16%
Wait For Part 2:-