Regulatory and Legal Affairs

Here's a question worth asking: If you graduated from a hospitality management program today, would you know how to read a hotel's financial statement? For many graduates, the answer may be no. Rather than reflecting a lack of student ability, it highlights an opportunity to strengthen how hospitality finance is taught within academic programs. Many hospitality programs do an excellent job preparing students in service, operations, and guest experience, but some may not provide the same level of exposure to hospitality-specific financial reporting and accounting frameworks. One contributing factor may be the limited emphasis placed on hospitality-specific accounting frameworks, including the Uniform System of Accounts for the Lodging Industry (USALI) — the industry's standard financial reporting framework. This conversation should extend beyond hospitality programs housed within business schools. Whether students are studying hospitality management, hotel administration, tourism, event management, or related disciplines, they will benefit from understanding the financial frameworks and reporting standards that shape decision-making across the lodging industry. Ignoring this isn't a minor oversight, but a disservice to student s who enrolls in a hospitality program expecting to be prepared for a career in the industry. What Is the USALI — and Why Does It Matter? The Uniform System of Accounts for the Lodging Industry is the standardized financial reporting framework used by hotels and lodging properties around the world. First introduced in 1926 and now in its 12th revised edition, the USALI provides a common language for financial reporting across the lodging sector — from boutique independents to global hotel chains. The USALI covers everything from how revenues and expenses are categorized, to how departmental statements are structured, to how management fees and non-operating costs are reported. It defines the Rooms Department Schedule, the Food and Beverage Schedule, and the Summary Operating Statement — the documents that hotel owners, operators, and asset managers rely on to make critical business decisions every single day. Understanding the USALI is not optional for anyone working in hotel finance, asset management, revenue management, or general management. It is foundational. Without it, a graduate stepping into a finance role — or any senior management role — is flying blind. And yet, ask yourself: how many hospitality programs require even a single course that teaches it? A Wake-Up Call from the Classroom The depth of this problem came into sharp focus for me at the International Council on Hotel, Restaurant, and Institutional Education (ICHRIE) event..where the top hospitality educators in the world gather. In conversation s with various hospitality program leaders, to my surprise, several were unfamiliar with the USALI. The conversations reinforced an important point: exposure to industry financial frameworks is not always consistent within academia, even among highly respected programs and educators. Let that sink in. A department head at a hospitality college, responsible for designing the academic pathway that prepares students for careers in the lodging industry, was unfamiliar with the most widely used financial reporting framework in that very industry. This isn't a criticism of that individual. It's a

📈 During its half-year results presentation, Investor Relations Director Namida Artispong announced a delay of the Minor REIT listing on the Singapore Exchange due to "unfavourable market conditions" and geopolitical tensions in the Middle East. Initially planned for 2025 and later postponed to 2026, the REIT's seed portfolio includes 14 Minor hotels in Europe and Thailand. The group’s restaurant subsidiary, Minor Food Plc, will still list on the Hong Kong Stock Exchange.

Introduction New wars, new tariffs, new Prime Ministers, heatwaves and massive wildfires have buffeted the region these past six months, and yet stock markets seem healthy and the oil price has not gone through the roof. Our world is more resilient than we might think. Or is it all an AI creation. In our Monitor series we deal with facts and here are the facts. Lots of movement in the performance stats, with some big winners and sizeable losers. Congratulations to the big winners: Istanbul +26% in occupancy, Olympics-influenced Milan +6% in ADR and a whopping +52% in GOPPAR (Gold Medal to Milan). I am sure all our thoughts go to the Middle East, which has been devastated by conflict yet again, with ADR -33% in Dubai, occupancy -11% and GOPPAR -62% in Bahrain. Keep your chins up and H2 2026 will be better. Construction costs continue on a generally upward trend (driven by labour availability issues and ongoing conflicts in the Middle East) but tender price growth in some markets can be suppressed by softer pipelines and increased competition for projects. Plenty of deals happened around Europe (none to note in Middle East or Africa), with France particularly frenetic. For another half year in recent years, a good few ‘€1m per key’ deals were concluded. Spain and the UK (particularly London) were hotspots, with Germany and other countries showing lesser signs of activity. Our world is more resilient than we might think. Our final page feature is a brief update on the current mood around Hotel Ground Rents (predominantly in the UK) and we would like to thank each of the protagonists for their help and support in compiling this feature. Philip Camble Director, Whitebridge Hospitality Editor, EMEA Hotels Monitor

📅 On 17 August 2026, HSMAI Europe began a new agreement with HSMAI Global to manage activities in Turkey, with official launch plans for early 2027. An Advisory Board will be established to shape priorities, involving hotel owners and leaders. The initiative aims to enhance Turkey's hospitality market by integrating HSMAI's international network. HSMAI members from Middle East and Asia-Pacific can participate in Turkey with similar benefits. Further announcements on activities and involvement opportunities are anticipated.

📈 Earlier this year, Joerg Schuler from Amadeus emphasized data-driven strategies for corporate travel RFPs. A U.S. hotel renovation targeted health, wellness, and sustainability, aligning with a nearby account. Metrics show 10 of 14 guestroom categories are responsibly sourced, with 60% of FF&E budget verified. The wellness market is $7 trillion, influencing hotel choices. Environmental data affects 15-20% of hotel selection. One retailer moved $260,000 per hotel due to sustainability concerns.

🏈 Groove Technology Solutions remains a key player in offering NFL Sunday Ticket to hotels under a new multi-year agreement with DIRECTV FOR BUSINESS and EverPass Media, effective 2026. This agreement ensures continued access for hotels to Sunday NFL games without service disruption, crucial as 35% of travelers prefer hotels with live sports. Pricing for public viewing depends on Fire Code Occupancy. Groove, headquartered in Salt Lake City, Utah, earned the 2025 DIRECTV FOR BUSINESS Hospitality Dealer of the Year award.

💸 Delta collected $8.2 billion from American Express in 2025, making up 14% of its adjusted operating revenue. This figure is expected to reach $10 billion. American Airlines earned $6.2 billion from co-brand cards and partners, and signed a 10-year exclusive deal with Citi, projected to add $1.5 billion annually. These earnings highlight the significant role of interchange fees in the U.S. credit card system, uncapped unlike in other wealthy economies.

📉 Lawrence Kenwright, founder of Liverpool's Signature Group, disqualified from being a company director for five years starting August 18, 2026, after investors lost over £4.8 million. The Insolvency Service found false marketing by Signature Works Gold Limited, indicating investors would have property rights, which they did not. The company, operational since January 2017, ceased investor returns in September 2019 and was liquidated in December 2022 with liabilities of £4.85 million and assets below £100,000.

🏨 Hotel franchisees pay around 12% of room revenue to franchisors. HVS reports 2025 franchise costs range from 9.6% for economy brands to 12.9% for high-end brands. Loyalty program costs rise, with Marriott Bonvoy reaching 295 million members by Q2 2026. Hilton's loyalty participation is 67%. Marriott reduced loyalty fees by 5%, while Hilton cut around 30 basis points since January. Franchise agreements are legally complex, typically favor franchisors, and are difficult to exit.

💰 Government plans to mandate VAT and PAYE payments via direct debit pose risks, warns ICAEW. The plan could strip businesses of cash flow control, leading to administrative errors caused by flawed HMRC data. Issues like misallocated payments and BACS caps were noted. Adelle Greenwood of ICAEW argues against penalties for not adopting direct debits, suggesting that maintaining existing penalty regimes is better. Most taxpayers already pay on time, making the proposed mandate disproportionate.