> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Marriott's Tax Bill Held At $266 Million On A $29 Million Foreign Allowance Release
- URL: https://www.bullished.co/marriotts-tax-bill-held-at-266-million-on-a-29-million-foreign-allowance-release-95c6dcd9/
- Published: 2026-11-02T12:52:16.000Z
- Updated: 2026-11-02T12:52:16.000Z
- Description: Lower taxes and a smaller share count helped lift Marriott's third-quarter diluted EPS to $3.04 from $2.67.
- Author: Matteo Parrino
- Tags: Earnings, MAR, Industry: Consumer Discretionary

[Marriott International](https://www.bullished.co/tag/mar/), the hotel franchisor and operator, kept its third-quarter tax provision flat at [$266 million](https://www.sec.gov/Archives/edgar/data/0001048286/000104828626000043/mar-20260930.htm?ref=bullished.co) because a $29 million release of a non-U.S. tax valuation allowance offset $19 million of tax on higher pre-tax income, according to its 10-Q filed Monday. The allowance release stems from legislation enacted during the quarter.

## How the tax line stayed put

The effective tax rate fell to 25.1% from 26.8% a year earlier, and the 10-Q attributes the drop primarily to the allowance release. The [prior quarter's filing](https://www.sec.gov/Archives/edgar/data/0001048286/000104828626000035/mar-20260630.htm?ref=bullished.co) had credited its own rate decline to lower tax on non-U.S. income.

For the first nine months, the provision rose to $754 million from $656 million, and the effective rate climbed to 25.5% from 23.3%. The 10-Q ties that increase to a prior-year release of tax reserves ($91 million) and higher pre-tax income ($61 million), partly offset by the same $29 million allowance release.

## Buybacks do part of the EPS work

Net income rose to [$794 million](https://wtop.com/local/2026/11/marriott-q3-earnings-snapshot/?ref=bullished.co) from $728 million. Diluted shares fell to 261.2 million from 272.5 million, lifting diluted earnings per share to $3.04 from $2.67.

Marriott repurchased 3.5 million shares for $1.3 billion in the quarter and 9.6 million shares for $3.4 billion through October 28\. Cash spent on repurchases in the first nine months was $3,081 million, against $2,300 million a year earlier. The [earnings release](https://www.sec.gov/Archives/edgar/data/0001048286/000104828626000040/mar-2026q3xex99earningsrel.htm?ref=bullished.co) put worldwide RevPAR, or revenue per available room, up 6.5%.

## Debt, deficit and the next hotel sale

Marriott issued $1.25 billion of new notes in August ($250 million plus $1.0 billion). Total debt stood at $16.8 billion against $0.5 billion of cash. In September it amended its credit facility to $5.0 billion, maturing September 23, 2031, up from $4.5 billion.

The stockholders' deficit widened to $5.1 billion from $4.5 billion at the end of June as treasury stock grew.

Marriott expects to sell a second U.S. & Canada hotel later in the fourth quarter, with $212 million of assets held for sale on its balance sheet. Its full-year outlook assumes capital returns to shareholders of at least $4,800 million.

The company's market value was $104.1 billion as of Monday's original report.

### Sources

- [10-Q Filing — Marriott International (MAR)](https://www.sec.gov/Archives/edgar/data/0001048286/000104828626000043/mar-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Marriott International (MAR), Q2 FY2026 filed 2026-08-03 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001048286/000104828626000035/mar-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, mar-2026q3xex99earningsrel.htm) — Marriott International, filed 2026-11-02](https://www.sec.gov/Archives/edgar/data/0001048286/000104828626000040/mar-2026q3xex99earningsrel.htm?ref=bullished.co) — SEC EDGAR
- [Is Marriott International (MAR) Fully Valued After Its Latest Leadership Update?](https://finance.yahoo.com/markets/stocks/articles/marriott-international-mar-fully-valued-121300413.html?ref=bullished.co) — Yahoo Finance
- [Marriott: Q3 Earnings Snapshot – WTOP News](https://wtop.com/local/2026/11/marriott-q3-earnings-snapshot/?ref=bullished.co) — wtop.com
- [How Earnings Forecast Upgrades At Marriott International (MAR) Have Changed Its Investment Story](https://finance.yahoo.com/markets/stocks/articles/earnings-forecast-upgrades-marriott-international-060905376.html?ref=bullished.co) — Yahoo Finance
- [US Markets: Marriott International shares in focus ahead of Q3 earnings, growth outlook amid Iran war impact | Stock Market News](https://www.livemint.com/market/stock-market-news/us-markets-marriott-international-shares-in-focus-ahead-of-q3-earnings-growth-outlook-amid-iran-war-impact-11793371045972.html?ref=bullished.co) — livemint.com
- [MAR Gears Up for Q3 Earnings: RevPAR and Fee Growth in Focus](https://finance.yahoo.com/markets/stocks/articles/mar-gears-q3-earnings-revpar-154800439.html?ref=bullished.co) — Yahoo Finance

### More on Marriott International

- [Marriott Lifts 2026 RevPAR Growth Outlook To 4.5% To 5% As Third-Quarter Profit Rises 9%](https://www.bullished.co/marriott-lifts-2026-revpar-growth-outlook-to-4-5-to-5-as-third-quarter-profit-rises-9-60fb7388/)

[All Marriott International (MAR) coverage →](https://www.bullished.co/tag/mar/)