Interpreting and Auditing Hotel Accounts in 2016 Part 2 of a Series - What is a hotel ?

A typical hotel is a complex business unit.  It has distinguishing features from other businesses that demand an organised approach to monitoring and recording its activities and transactions, and a depth of knowledge to be able to interpret its operating performance.

What comprises a hotel is starting point.  In the days when there were tax allowances for hotel buildings the taxation authorities defined it as ‘a business that provides overnight accommodation and serves breakfast and at least one other meal’.   The description hotel now covers businesses where a far wider range of options is offered.  


  • room only properties

  • properties that provide only breakfast

  • extended stay properties where kitchens are included

  • hostel type properties where multi-occupancy is possible

  • conference, spa and golf properties with bedrooms

  • restaurants with rooms