What is the meaning / definition of EBITDAR in the hospitality industry?
EBITDAR stands for: Earnings Before Interest, Taxes, Depreciation, Amortisation, and Rent
It is the same calculation as EBITDA, with the exception that rents and/or restructuring costs are excluded from the expenses.
It is useful KPI for hotels to evaluate its financial performance.
How do you calculate EBITDAR?
- EBITDAR Formula: Revenue – Expenses*
*Expenses in this case are excluding tax, interest, depreciation, amortization and rent (or restructuring) cost
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