Hotel Revenue Glossary · Financial

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

A measure of operating performance that adds back non-cash charges (depreciation, amortization) and financing costs (interest, taxes) to net income. In hotel context, EBITDA approximates the cash-generating ability of the property before capital structure effects.

Why it matters: EBITDA is widely used in hotel transactions and management company evaluations because it normalizes for different ownership structures and tax situations. It allows apples-to-apples comparison of operating performance across properties.

All glossary terms NOI (Net Operating Income) GOPPAR (Gross Operating Profit Per Available Room) Capitalization Rate (Cap Rate)