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Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or rent costs


Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs, is a common used tool to measure a hotels performance. Even though it usually does not appear on a company’s financial statements, it is calculated using information from income statements. EBITDAR is measuring a company’s core operational performance.

How do you calculate EBITDAR?

The Formula for EBITDAR
EBITDAR = EBITDA + Restructuring/Rental Costs​

EBITDA = Earnings before interest, taxes,
depreciation, and amortization.