EBIT

EBIT measures earnings before interest and taxes, focusing on operational profitability
independent of financing and tax structure.
Why it matters:
It allows comparison of operating performance between hotels with different ownership or debt
structures.
Practical use:
Owners compare EBIT across properties to identify operational efficiency differences.
Real-life examples:
Two hotels generate similar revenue, but the one with better cost control shows higher EBIT
despite identical pricing