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Articles & publications • 2024-06-27

New USALI 12th Revised Edition Update –
ESG related changes

Following the last edition published in 2014, the new 12th Revised Edition of the Uniform System of Accounts for the Lodging Industry (USALI) has its debut this year (the e-book version will be available in July) and will be placed in effect on January 1, 2026. Besides other adaptations, new elements i.e. schedules have been introduced which further increase transparency and alignment with contemporary practices. These include reporting guidelines concerning the executive/club lounge; payroll FTE; all inclusive; brand and operator costs; guest loyalty program; and energy, water & waste (EWW). In the first of our USALI update series, we summarise the new EWW Schedule 9 which relates to the E in ESG.

Considering the increasing importance of sustainability reporting to most stakeholders including customers, owners/investors, lenders and public authorities, especially in the EU (with the EU Taxonomy, the launch of the Corporate Sustainability Reporting Directive and the upcoming green Claim directive), the introduction of a new energy, water and waste (EWW) schedule is timely. The purpose of these changes is to consolidate all ‘environmental’ related expenses of the hotels in one place and to track important consumption and emissions data and ratios which were not included previously. These changes will help hoteliers to better benchmark these important metrics, and as USALI reporting is mandated in many contracts, this will improve transparency for multiple stakeholders.

As summarised by the Hospitality Financial and Technology Professionals (HFTP), the publishers and copyright owners of USALI, the changes include the following:

  • Reclassifying waste expenses from the Property Operations and Maintenance Schedule to the Energy, Water, and Waste (EWW) Schedule.
  • Expanding Energy, Water, and Waste with more detailed accounts and descriptions.
  • New EWW metrics to record and align consumption reporting with Scope 1 and Scope 2 Green House Gas reporting requirements.

In 2023, PKF hospitality group launched the Sustainability Solutions service line to help, amongst others, developers, owners and operators to navigate the fast-changing ESG landscape in the hospitality industry. Our clients are grappling with new reporting requirements, increasing energy costs, a changing regulatory environment, climate change, the evolution of technology and ESG certifications and accreditations.  Our ESG Assessment for hotel projects and existing properties is the first step of the process, allowing our global team to support clients as they navigate these changes and make strategic decisions.

Adam Maclennan
Senior Managing Director | Head of UK & Ireland
Head of Sustainability Solutions
PKF hospitality group
M: +44 20 75162471

Jeffrey Scott
Director | Head of Asset Management
PKF hospitality group
M: +49 172 6196288

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