What is the meaning / definition of 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

See Also:

  • EBITDA
  • GOP
  • NOP

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