Consolidation plays a critical role in financial management for hotel groups. However, many organizations overlook it or use inefficient property-level processes.
Hotel management teams often oversee several properties. Finance leaders must also prepare consolidated reports for owners, asset managers, lenders, and other stakeholders. Unfortunately, manual systems make these responsibilities harder than they need to be.
Where Hotel Groups Go Wrong With Consolidation
Each property in your portfolio may use a separate accounting system. In addition, those systems may use different charts of accounts. Some properties may even close their books on different dates.
If the following situations sound familiar, your hotel group may need a better consolidation process.
Relying on Spreadsheets
Your finance team pulls a trial balance from each property. Then, the team combines the data in Excel and hopes no errors appear.
This process may work for two or three properties. However, it becomes difficult to manage as the portfolio grows. More entities create more spreadsheets, formulas, and opportunities for mistakes.
Using Inconsistent Charts of Accounts
Properties often label similar accounts differently. For example, one hotel may use “Room Revenue.” Another may call the same account “Transient Rooms.”
As a result, the finance team must map accounts manually. This work consumes hours and creates unnecessary frustration. It also limits visibility across the portfolio.
Eliminating Intercompany Transactions Manually
Finance teams must identify and remove intercompany transactions during consolidation. When they complete this work manually, even a small error can distort the results.
International properties add another layer of complexity. Different currencies create translation and revaluation requirements that spreadsheets may not handle reliably.
Adjusting Reports for USALI
Some charts of accounts do not align with the Uniform System of Accounts for the Lodging Industry, or USALI. Therefore, teams spend days adjusting accounts after the close.
These changes make it harder to deliver reports to owners and asset managers on time. They also increase the risk of inconsistent reporting between periods.
Waiting Weeks for Reliable Financial Data
If your team waits three weeks after month-end for accurate financials, management cannot respond quickly. Leaders may lack a clear view of performance by property, region, or portfolio.
That delay can affect critical decisions. RevPAR changes quickly, while labor and operating costs continue to rise. Hotel groups need timely information to remain competitive.
What Proper Multi-Entity Consolidation Looks Like
A world-class multi-entity financial system should simplify reporting across the entire portfolio. It should also give finance teams confidence in their numbers.
One General Ledger
The organization should use one general ledger for all companies. It should include clearly defined dimensions for:
- Location
- Department
- Market segment
- Property
- Ownership group
- USALI schedule of accounts
This structure creates consistency without forcing the team to maintain separate account structures for every reporting need.
Automatic Intercompany Eliminations
The system should identify intercompany transactions and eliminate them automatically. This process allows management to evaluate hotel performance based only on external business activity.
Automation also reduces manual calculations and the risk of errors.
Built-In Multi-Currency Management
International hotel groups need reliable currency tools. The system should translate and revalue transactions when the reporting currency differs from the local or transaction currency.
It should also calculate foreign exchange gains and losses automatically.
On-Demand USALI Reporting
Owners and managers should have access to USALI reports without making manual adjustments. A properly configured system allows them to generate those reports whenever needed.
Flexible Dimensional Reporting
Finance teams should be able to analyze results by property, region, market, department, or property type. They should not need to create a new entity or account for each reporting requirement.
Real-Time Financial Visibility
Management should have access to current financial information throughout the month. Leaders should not have to wait until month-end to understand the condition of the business.
Why Sage Intacct Is Built for Hotel Groups
Sage Intacct provides multi-entity, multi-currency, and dimensional accounting within one cloud platform. These capabilities allow hotel groups to manage complex financial structures more efficiently.
The finance team no longer needs to work through repeated weekends or extended month-end cycles. Instead, automation helps the team deliver accurate reports on time.
A Faster Financial Close
Sage Intacct streamlines consolidation, intercompany eliminations, and foreign currency revaluation. Finance teams can complete these processes through one connected system.
This approach eliminates many manual spreadsheets and reconciliation steps. It also helps the team close the books faster.
More Time for Financial Analysis
Automation allows finance professionals to focus on the business. They can analyze performance, advise management, and identify opportunities.
Instead of spending hours combining data, they can interpret what the numbers mean.
Reporting Through Dimensions
Management may want to review performance by occupancy, property, market, or another dimension. Sage Intacct makes this possible without creating extra entities or accounts.
The team can report through dimensions already built into the financial structure.
Hospitality Reporting Out of the Box
Sage Intacct supports the USALI reporting structure. It can also combine statistical data with traditional profit and loss reporting.
For example, teams can connect financial results with:
- Occupied rooms
- Average daily rate, or ADR
- Revenue per available room, or RevPAR
- Gross operating profit per available room, or GOPPAR
This connection gives hotel leaders a clearer view of operational and financial performance.
A Complete Audit Trail
Sage Intacct creates an audit trail for each process. Management can trace transactions, adjustments, eliminations, and approvals.
As a result, finance leaders spend less time questioning the data. Auditors can also follow the activity more easily.
How Acumen Information Systems Makes the Difference
Acumen Information Systems does more than provide Sage Intacct. We configure the platform around the way hotel finance teams actually operate.
Our team designs the entity structure, chart of accounts, and dimensions around your reporting needs. This includes USALI schedules, RevPAR, GOPPAR, and ownership reporting formats.
Hotel groups often operate across several states or countries. Therefore, we address multi-currency transactions and currency translation from the beginning.
A Structured Implementation Process
We plan each implementation in manageable waves. This approach helps hotel groups move multiple properties into the system in an orderly way.
Our team handles:
- Data migration
- Chart of accounts mapping
- Entity configuration
- Dimensional architecture
- Parallel processing
- Report validation
- Pre-launch data testing
We validate the reports and underlying data before launch. This process reduces disruption and helps the finance team enter the new system with confidence.
Continued Support After Launch
Our work does not end when the system goes live. Acumen continues to support your organization as it grows and changes.
We help clients identify new ways to use the platform. We can also improve reports, refine workflows, and adjust the system as business needs evolve.
Acumen is a Sage Diamond Partner with 18 years of Sage Intacct implementation experience. Our team also brings more than 100 years of combined hospitality experience.
We have completed hundreds of implementations across the United States, Canada, Bermuda, the Bahamas, and the Caribbean.
Real Outcomes After Automating Consolidation
Our hospitality clients report several consistent improvements after implementing Sage Intacct.
Faster Monthly Closes
Clients often close their books on the same day or the following day. In comparison, manual consolidation may require 7 to 10 days.
A faster close gives leaders more time to review results and make informed decisions.
One Reliable Version of the Numbers
A centralized system eliminates many version-control problems. It also reduces spreadsheet errors and broken formulas.
Everyone works from the same financial data. As a result, meetings focus on performance instead of debating which spreadsheet is correct.
Better Visibility for Stakeholders
Finance teams can provide consolidated statements within days of month-end instead of weeks. Owners and asset managers receive accurate information sooner.
They can also review results at both the property and portfolio levels.
More Time for Analysis
Finance professionals spend less time chasing data and reconciling spreadsheets. Instead, they use their expertise to interpret results.
They can investigate trends, compare properties, and help management improve performance.
Simpler Audits
Documented processes and traceable transactions make audit season less painful. Clear elimination entries also help auditors understand how the team produced each report.
Standardized reporting further reduces confusion and saves time.
Frequently Asked Questions
How Long Does a Multi-Property Implementation Usually Take?
Most implementations take 8 to 16 weeks. However, every hotel group has different requirements.
The timeline depends on several factors. These include the number of entities, chart of accounts complexity, and data migration volume.
Can We Add Properties Later Without Redoing Everything?
Yes. Sage Intacct allows hotel groups to add new companies as needed.
The team can map each new property into the existing financial structure. Therefore, the platform can expand alongside your portfolio.
Can We Still Generate Owner and Lender Reports?
Yes. Our hotel group clients often gain more reliable data after implementation. They can also share that information with stakeholders sooner.
Sage Intacct supports USALI reporting and flexible report formats. Teams can create detailed property-level income statements or consolidated portfolio views.
What About International Properties and Foreign Currencies?
Sage Intacct includes multi-currency capabilities for international operations. The platform provides detailed currency translation and revaluation tools.
These features help finance teams produce reports that reflect different transaction, local, and reporting currencies.
Can We Still Track GOPPAR and Drill Down Into RevPAR?
Yes. Sage Intacct includes statistical reporting for the hospitality industry.
Teams can report on RevPAR, ADR, GOPPAR, occupied rooms, and other operational metrics. They can also connect those statistics to financial results without relying on workarounds.
What Types of Custom Reports Can We Create?
Sage Intacct allows users to create detailed reports and analyses. Teams can also drill into the underlying transactions with a few clicks.
For example, a CFO can move from “Room Revenue” to “Transient Rooms” without searching through separate spreadsheets. This capability makes it easier to understand the details behind each number.
Build a Better Consolidation Process
Manual consolidation may work for a small group of properties. However, it becomes more expensive and risky as the portfolio grows.
Sage Intacct gives hotel groups one connected platform for consolidation, reporting, eliminations, currency management, and operational analysis. Acumen helps configure that platform around the way your organization works.
Ready to see how automated consolidation could work for your hotel group? Schedule a consultation at AcumenFL.com.
