Solution

The series requirement in IFRS 15 applies when the following two criteria are met:

1. Each distinct good or service that the entity promises to transfer to the customer is substantially the same, and the same method is used to measure the entity’s progress towards complete satisfaction of the performance obligation.
2. The same pattern of transfer occurs to the customer, meaning the customer simultaneously receives and consumes the benefits of the entity’s performance as the entity performs.

In the case of hotel management services, where the service includes various activities like employee management, procurement, accounting, etc., it can be argued that these services are substantially the same, in that they all contribute to the overall management of the hotel. This would be particularly true if the hotel management contract is structured such that the hotel (customer) is receiving the benefit of the management services consistently over the contract term.

Also, in most cases, the method of measuring progress towards fulfilling the contract is typically on a time-elapsed basis, such as a monthly management fee, which would also be consistent across the different tasks involved in hotel management.

So, it is likely that the series requirement could apply to hotel management services, considering each day or month of service as a separate performance obligation that is part of a series of distinct services. However, the exact application would depend on the specific terms of the contract and the nature of the services provided.