What caused Marriott's income tax expense spike in Q1 2022?
3/31/2025 12:22am
Marriott's income tax expense spiked in Q1 2022 due to a combination of factors:
1. **Geographical Expansion and New Property Additions**: Marriott's acquisition of the W Nashville in Q1 2022 contributed to the increase in income tax expense. The addition of this property, which is part of Xenia Hotels & Resorts, Inc., brought in new tax liabilities that Marriott had to account for.
2. **Global Operations and Tax Jurisdictions**: As a global hotel chain with operations in various countries, Marriott is subject to different tax laws and regulations in each jurisdiction. The complexity of managing tax compliance across multiple locations can lead to increased tax expenses, especially during periods of rapid expansion or changes in tax laws.
In conclusion, Marriott's income tax expense spike in Q1 2022 was primarily caused by the acquisition of the W Nashville and the global nature of its operations, which introduced new tax liabilities and complexities.