EBITDA

EBITDA measures earnings before interest, taxes, depreciation, and amortization and is widely
used in hotel valuation.
Why it matters:
It reflects operational cash-generation potential and supports asset valuation.
Practical use:
EBITDA margins are tracked to evaluate operational improvements over time.
Real-life examples:
Outsourcing housekeeping improves EBITDA even though revenue remains flat.

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