EBITDAR

Definition

Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent costs. A profitability measure that adds rent and lease costs back, so hotels with different ownership structures can be compared on operating performance alone.

What it tells you

EBITDAR isolates how the operation performs before the property is financed. It matters most when a hotel leases its building — stripping out the rent line lets an owner or investor compare a leased property against an owned one on equal terms.

How to track it

Built from the P&L: operating profit plus depreciation, amortization, and rent or restructuring costs added back. Reported per period, usually alongside GOP and GOPPAR on the owner report.

Where it fits

EBITDAR sits at the owner and asset-management level, above the day-to-day revenue metrics. Where RevPAR and GOPPAR measure commercial and operating efficiency, EBITDAR normalizes for how the property itself is financed.