EBITDAR – Earnings Before Interest, Taxes, Depreciation, Amortisation, and Rent
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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About the Author: Patrick Landman
As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELS´ diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.
