USALI 12th Edition: What Hotels Should Prepare for by January 2026

You may also be interested in our USALI vs US GAAP: A Guide for Hotels and Accountants and our US GAAP vs IFRS article

As the hospitality industry continues to evolve, staying ahead of financial reporting standards is crucial for maintaining compliance and safeguarding profitability. The Uniform System of Accounts for the Lodging Industry (USALI), the gold standard for hotel accounting, is set for a major update with its 12th Revised Edition taking effect on January 1, 2026. This edition introduces enhanced transparency in key areas like sustainability tracking and guest loyalty programs, reflecting modern demands for environmental accountability and precise cost allocation. For small hotels and bed-and-breakfasts (B&Bs), these changes aren't just regulatory hurdles—they're opportunities to optimize operations and protect margins. At Antravia, we've helped countless independent properties navigate similar shifts, and we're here to break down what you need to know and do right now.

Key Changes in the 12th Edition: Spotlight on Sustainability and Loyalty

The 12th Edition builds on previous versions by aligning hotel financial reporting with contemporary trends, including ESG (environmental, social, and governance) priorities and the booming loyalty ecosystem. While the full update includes new schedules for full-time equivalent (FTE) labor tracking, executive lounge costs, and all-inclusive resorts, the most impactful for smaller operations are the expansions in sustainability and loyalty reporting.

Enhanced Sustainability Reporting: From Utilities to Environmental Impact

One of the biggest shifts is the rebranding and expansion of the old Utility Department into the new Energy, Water, and Waste Schedule 9. This isn't just a name change as it is a comprehensive overhaul designed to meet rising demands from regulators, investors, and eco-conscious guests for transparent environmental data.

Key updates include:

• Broader Utility Tracking: Beyond traditional electricity, water, and gas, you'll now report on renewable energy sources (like solar) and composted waste.

• New Metrics for Accountability: Expect to calculate costs per unit (e.g., energy cost per kWh) and environmental benchmarks like water usage per occupied room night or carbon emissions per available room. This supports Scope 1 and Scope 2 greenhouse gas reporting, helping hotels qualify for green financing or tax incentives.

For small hotels and B&Bs, this means shifting from basic utility bills to holistic environmental audits. It's a chance to showcase your commitment to sustainability, highlighting local sourcing or energy-efficient upgrades, which can attract more guests and justify premium pricing.

Loyalty Program Tracking: Isolating Costs

Loyalty programs are a double-edged sword: they drive repeat business but can erode margins if costs aren't visible. The 12th Edition tackles this head-on with dedicated expense categories across multiple schedules, ensuring loyalty-related outlays are no longer buried in general accounts.

Highlights include:

• Separate Cost Buckets: New lines for loyalty member benefits (e.g., complimentary perks like lounge access), promotion costs (e.g., double points offers), and service recovery (e.g., points issued for complaints). Costs are recognized when points are earned, not redeemed, creating a balance sheet liability for deferred revenue.

• Revenue Segmentation: Rooms revenue now breaks out "qualified" rates for loyalty redemptions, alongside metrics like the loyalty member contribution rate (percentage of rooms sold to loyalty guests).

This granularity lets owners and operators evaluate program ROI, potentially renegotiating terms with brands or trimming unprofitable perks. For independents, it's especially vital, as many small properties participate in third-party programs without realizing the full financial drag.

Why Small Hotels and B&Bs can't afford to wait

Unlike large chains with dedicated finance teams, small hotels and B&Bs often juggle accounting in-house or with limited support. Non-compliance by 2026 could mean audit headaches, inaccurate benchmarking, or even strained owner-operator relationships. On the flip side, early adoption unlocks benefits like:

• Margin Protection: Pinpointing loyalty costs could reveal 5-10% savings in guest services, while sustainability data supports eco-certifications that boost RevPAR.

• Competitive Edge: Transparent reporting aligns with guest expectations, as over 70% of travelers prefer sustainable brands, thus helping you stand out in a crowded market.

• Easier Scaling: Standardized metrics simplify growth, whether you're expanding rooms or adding amenities.

The flexibility in rollout (some properties can phase in changes) is a boon for smaller operations, but starting now avoids last-minute scrambles.

Actionable Steps: Prepare now

With the clock ticking toward 2026, here's a roadmap tailored for resource-strapped independents:

1. Audit Your Systems (Q4 2025): Review your chart of accounts and payroll software for gaps in loyalty, utility, and FTE tracking. Use simple spreadsheets if you're not on advanced PMS and focus on baselines for energy consumption and loyalty redemptions.

2. Update Reporting Tools: Integrate new categories into your accounting setup. For sustainability, partner with utility providers for detailed data; low-cost cloud tools can handle loyalty segmentation without a full overhaul.

3. Train Your Team: Limit sessions to key staff on interpreting new metrics like FTE per occupied room or waste per guest. Free online resources from HFTP can keep it budget-friendly.

4. Benchmark and Strategize: Compare against industry averages once data flows—use this to negotiate better loyalty terms or launch green initiatives that cut costs long-term.

Also review our Blog - USALI vs US GAAP: A Guide for Hotels and Accountants

At Antravia, we specialize in USALI-compliant solutions for independents, from automated reporting dashboards to customized audits. Our tools help you turn these changes into profit drivers, not pains.

The 12th Edition is about future-proofing your business in a sustainability-focused, loyalty-driven world. Start preparing today, and you'll be compliant, competitive, and cash-flow positive by January 2026. Reach out to Antravia for a free compliance checklist

References

1. USALI, 12th Revised Edition: Is Your Finance Team Ready for ... - https://www.hftp.org/blog/usali-12-finance-team

2. Uniform System of Accounts for the Lodging Industry | HFTP - https://usali.hftp.org/

3. The New Uniform System of Accounts for the Lodging Industry - https://clarknuber.com/articles/the-new-uniform-system-of-accounts-for-the-lodging-industry-what-you-need-to-know/

4. 2026 USALI Changes: Hotel Finance Leaders Must Prepare - https://qxglobalgroup.com/fa/uk/blog/breaking-down-the-2026-usali-changes/

5. USALI 12th Edition: Aligning Hotel Accounting With Modern Hospitality - https://www.withum.com/resources/usali-12th-edition-aligning-hotel-accounting-with-modern-hospitality/

6. The USALI 12th Revised Edition, An Expert Overview of Updates - https://www.hospitalityupgrade.com/magazine-articles/the-usali-12th-revised-edition-an-expert-overview-of-updates

7. USALI 12th Edition: Key Updates for Hotel Finance Teams in 2025 - https://www.inn-flow.com/usali-12th-edition-what-hotel-finance-teams-need-to-know-for-2025/

8. [PDF] Presenting the USALI 12th Revised Edition - https://www.hftp.org/downloads/documents/usali/usali12_073024_eww.pdf

9. HFTP, AHLA, and GFC Unveil Groundbreaking 12th Revised Edition ... - https://www.ahla.com/news/hftp-ahla-and-gfc-unveil-groundbreaking-12th-revised-edition-uniform-system-accounts-lodging

10. Six USALI Changes Hotel Finance Executives Need to be Aware of ... - https://www.hftp.org/news/4125275/six-usali-changes-hotel-finance-executives-need-to-be-aware-of-in-2025

11. [PDF] A Deep Dive into Changes in the New Edition - https://www.hftp.org/downloads/documents/usali/usali12_presentation.pdf

12. USALI 12th Edition: Key Updates for Hotel Finance Teams in 2025 - https://www.inn-flow.com/usali-12th-edition-what-hotel-finance-teams-need-to-know-for-2025/

13. The USALI 12th Revised Edition, An Expert Overview of Updates - https://www.hospitalityupgrade.com/magazine-articles/the-usali-12th-revised-edition-an-expert-overview-of-updates

14. 2026 USALI Changes: Hotel Finance Leaders Must Prepare - https://qxglobalgroup.com/fa/uk/blog/breaking-down-the-2026-usali-changes/

15. USALI 12th Edition: Aligning Hotel Accounting With Modern Hospitality - https://www.withum.com/resources/usali-12th-edition-aligning-hotel-accounting-with-modern-hospitality/

16. USALI 12th Revised Edition, Deep Dive: Energy, Water, and Waste - https://www.hftp.org/blog/usali-12th-revised-edition-deep-dive-energy-water-waste

17. [PDF] The USALI 12th Revised Edition, An Expert Overview of the Updates - https://www.hftp.org/downloads/documents/usali/tfh24sp_usali12overview.pdf

18. USALI 12th Revised Edition Deep Dive: Energy, Water, and Waste - https://usali.hftp.org/event/usali12th-eww