March 23, 2018 Owner & Franchise Communications

Reporting of Transient Cancellation Revenue, Resort Fees and Destination Fees

Franchise Management Companies | To align with the Uniform System of Accounts for the Lodging Industry (USALI) guidance, hotels will be asked to take the following actions:

Marriott Rewards MSB Hotels: Property management system updates were implemented within FOSSE on Jan 1. In addition, property management system updates are in process to break out destination fees into their own separate charge codes to similarly align with USALI guidance. These changes are intended to help ensure properties do not need to manually transfer revenue and also help ensure that RevPAR and reporting to STR are accurate. Per your franchise agreement, transient cancellation revenue and destination fees will be used to calculate Gross Room Sales as part of the monthly reported results process. For 2018 we will continue to invoice this revenue at the end of the year as part of our annual audit. Enhancements to the FOSSE and OFB systems will be made in 2019 to make this reporting automated.
Marriott Rewards Full Service Hotels: Properties are reminded to update their property management system if they haven’t already done so, which will help ensure that RevPAR and reporting to STR are accurate. Per your franchise agreement, transient cancellation revenue, resort fees and destination fees should be used to calculate Gross Room Sales as part of the monthly reported results process. For 2018 we will continue to invoice this revenue at the end of the year as part of our annual audit. Enhancements to the Owner Franchise Billing reported results input screen will be made in 2019 to allow for this revenue to be reported.
SPG MSB Hotels: Properties are reminded to update their property management system if they haven’t already done so, which will help ensure that RevPAR and reporting to STR are accurate. It may be necessary, based on the individual franchise agreement of your hotel, to report this transient cancellation revenue and destination fees as part of the monthly reported results process for calculation of Gross Room Sales. For 2018 we will continue to invoice this revenue at the end of the year as part of our annual audit. Enhancements to the Owner Franchise Billing reported results input screen will be made in 2019 to allow for this revenue to be reported.
SPG Full Service Hotels: Properties are reminded to update their property management system if they haven’t already done so, which will help ensure that RevPAR and reporting to STR are accurate. It may be necessary, based on the individual franchise agreement of your hotel, to report this transient cancellation revenue, resort fees and destination fees as part of the monthly reported results process for calculation of Gross Room Sales. For 2018 we will continue to invoice this revenue at the end of the year as part of our annual audit. Enhancements to the Owner Franchise Billing reported results input screen will be made in 2019 to allow for this revenue to be reported.

This information will be communicated to hotels via the Mar. 26 Franchise Weekly Update. Hotels were provided instructions via their respective PMS (GPMS, FSPMS and FOSSE) or via OPERA job aid. We ask that you work with your hotel finance team(s), where needed, to ensure they are following and complying with this USALI guidance. Should you have any questions, contact the Americas Franchise Finance team.