Amortization

Amortization spreads the cost of intangible assets over their useful life, ensuring expenses are
recognized gradually rather than all at once. In hotels, it commonly applies to software, licenses,
and brand-related costs.
Why it matters:
Amortization stabilizes financial results and prevents one-time expenses from distorting
EBITDA and profitability comparisons between periods.
Practical use:
Finance teams amortize PMS, RMS, or CRM implementation costs monthly instead of expensing
them upfront.
Real-life examples:
A hotel launches a new RMS and amortizes the implementation cost over three years, keeping
EBITDA comparable year over year instead of showing a sudden cost spike