What is the meaning / definition of EBITDA in the hospitality industry?
EBITDA stands for: Earnings Before Interest, Taxes, Depreciation and Amortization.
Is an indicator of a company’s financial performance and can be used to analyze and compare profitability between hotels / companies / industries because it eliminates the effects of financing and accounting decisions.
How do you calculate EBITDA?
- EBITDA Formula: Revenue – Expenses*
* Expenses in this case are excluding interest, taxes, depreciation and amortization.