Hotel Financial Reporting in Practice

Part VII introductionFrom GOP to Owner Economics

Do not call GOP the owner result, EBITDA cash flow, NOI a universal subtotal, Net Profit distributable cash, or a converted chart a completed USALI implementation. Name the layer, apply the governing definition, reconcile the evidence, and assign the decision to the party that can change the cause.

Reading sequence

Chapters in this Part

32GOP Margin, Fixed Charges, and the EBITDA BridgeFrom operating conversion through management fees and nonoperating items to EBITDA33Owner Economics, Net Profit, Cash Flow, and Asset ReturnsFrom EBITDA to capital maintenance, accounting profit, owner cash, value, and investment decisions34USALI, US GAAP, IFRS, Statutory, Tax, and Lender Reporting BridgeChapter 3 established the reporting-purpose boundary: comply locally, manage consistently, and compare with a bridge. Chapters 32 and 33 then carried the hotel from GOP through management fees, fixed charges, EBITDA, Net…35Converting a Hotel From Non-USALI Reporting to USALIFrom legacy accounts and disconnected operating data to a controlled USALI 12 management system