(Updated Aug. 2 to include a statement from the American Hotel & Lodging Association.)
Hotel industry accounting and tech organization Hospitality Financial and Technology Professionals announced plans to move forward on a major benchmarking report and sever ties with the American Hotel & Lodging Association.
In a news release, HFTP said it has been in the process of revising the 11th edition of the Uniform System of Accounts for the Lodging Industry since acquiring the rights to USALI in 2019. The organization cites both AHLA’s ambitions for its role in the U.S. hotel industry as well as its partnership with Questex to create an event that competes with the Hospitality Industry Technology Exposition and Conference as reasons for ending its relationship with AHLA.
“HFTP wishes AHLA and their for-profit partner the best of luck in the new endeavor,” HFTP CEO Frank Wolfe said in the release. “Competition always makes everyone in the comp set raise the bar a bit, and HITEC has had plenty of competition over the years."
Wolfe said that the problem the new event creates for suppliers and HITEC's supporters, including major industry associations such as the Asian American Hotel Owners Association, is that it takes place over some of the same days as HITEC.
“Decisions like this really create a hardship for the industry, especially the suppliers without whom we would not survive,” he said.
On July 28, AHLA announced a collaboration with Questex to launch The Hospitality Show June 27-29, 2023, at The Venetian Las Vegas. HITEC North America has been scheduled to take place from June 26-29 at the Metro Toronto Convention Centre in Toronto, Ontario, Canada.
“The Show will be the only comprehensive hospitality event to bring together industry leaders and procurement specialists from across the hospitality spectrum,” AHLA’s news release about the new conference states.
Also in the release, AHLA President and CEO Chip Rogers said his organization recognizes the need to annually bring together the industry’s most important voices and respected leaders.
“The Hospitality Show will be a completely new hospitality event experience — a one-stop-shop for the hospitality industry to meet, learn and do business with stakeholders from other businesses that are key to our operations,” he said. “We intend to make The Show the most important hotel event of the year and are excited to partner with Questex to make this happen."
When asked for comment, AHLA responded through a spokesperson saying AHLA's Financial Management Committee members have played a highly constructive role as the strategic thought leaders and content creators for USALI for many years. FMC-member companies are also among the largest customers of the publication.
"The FMC has worked harmoniously with other trade associations for many years, and it hopes to reach agreement with HFTP to complete work on the 12th edition," the statement said. "There is a scheduled meeting for later this week between senior level representatives from both AHLA and HFTP, in which we intend to participate with the objective of finding a way forward to releasing the 12th edition in the coming months."
To begin work on the 12th edition of USALI, HFTP established the Global Finance Committee with the AHLA, filling its seats with financial leaders of U.S. and international hotel brand, management and ownership companies, according to HFTP's news release. The goal was to have the GFC independently govern and oversee this and future revisions of USALI.
“While both organizations initially aimed to work together on numerous projects, including the USALI, it became apparent that their business practices are too diverse,” the news release states. “This includes AHLA's ambition to become the one voice for the entire hospitality industry in the United States.”
HFTP then cites AHLA’s proposed merger of the two organizations, but HFTP declined the offer in May, citing AHLA’s domestic focus and HFTP’s global reach. The co-chairs of the GFC, representing AHLA, voted to stop all work on the new USALI edition until the two organizations could reach an agreement.
“Due to the disparate interests and business models of HFTP and AHLA, HFTP has determined the best path forward to complete the 12th edition is to do so on its own,” HFTP said in the release.
HFPT said all current members of the GFC may continue to work on the new edition with the goal of finalizing it by the end of the year.