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.