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EBITDA Ratios in the Wilderness Lodge Industry

EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortization. It defines how much the Wilderness Lodge is making in profit after expenses and is one of the most used financial health indicators in the hospitality industry.

An EBITDA ratio is a profitability ratio that measures how much in earnings a company is generating as a percentage of revenue. EBITDA Margin = EBITDA / Revenue.

Knowing EBITDA ratios for the Wilderness Lodge industry can help both potential buyers and current owners compare performance and value against similar properties.

Below, are some examples of Wilderness Lodge EBITDA ratios that can be used to improve your revenue management approach – bringing better profitability and financial growth to your Wilderness Lodge.

Sample Wilderness Lodge EBITDA Ratios

Wilderness Lodge EBITDA Ratios

The above table illustrates how Wilderness Lodges exhibit a wide range of profitability. The figure shows how the sample EBITDA ratios range from 10.96% to 59.03% of total operating revenues. The average is 27.88%. In general, limited-service and select-service Wilderness Lodges can be operated more efficiently than full-service Wilderness Lodges.

Interpreting the EBITDA Ratio

As a rule of thumb, the following table represents the interpretation of EBITDA ratio:

Wilderness Lodge EBITDA Ratios

This article has been prepared by Frontier Hospitality Advisor for general information only. Frontier Hospitality Advisor makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Frontier Hospitality Advisor excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this article and excludes all liability for loss and damages arising there from.

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