When Hotel Profits Look Too Perfect: The Hidden Fraud Risk in Hospitality Financial Statements
- Dr. Dino Gustaf Leonandri, SE, MM. M.AP, CHA, CBM, CHIA
- May 20
- 5 min read
In the hotel business, numbers tell a story. Occupancy tells owners whether the property is attractive. Average Daily Rate tells whether the hotel can command a price.
RevPAR tells whether revenue management is working. The GOP and EBITDA tell whether the hotel is truly converting service into profit. But numbers can also lie. Financial statement fraud in hotels rarely begins with a dramatic scandal. It often starts quietly: banquet revenue recognized too early, OTA commissions not properly recorded, refunds approved without adequate review, corporate receivables kept alive long after they should have been impaired, or service charge reporting that looks clean but lacks transparency.
