According to Even Hotels' 2025 Franchise Disclosure Document, the company's effective tax rate was 26.14 percent. This rate differs from the U.S. Federal Income Tax rate of 21 percent due to several factors. These include taxes imposed by various state and foreign jurisdictions, credits for taxes paid to foreign jurisdictions, valuation allowance on foreign tax credits, permanent tax adjustments (including FDII deduction and System Fund), deferred tax liability adjustments, and changes in uncertain tax positions.

As Even Hotels operates and franchises hotels internationally, the interpretation of tax law can vary across different countries. While the company relies on generally available interpretations, there's no guarantee that tax authorities will agree with their interpretations. This could potentially lead to additional tax liabilities and cash settlements. The company states that it provides against all quantifiable tax exposures based upon best estimates and management's judgment.

In addition to income taxes recognized in the consolidated statements of net income, Even Hotels recognized tax expenses in the consolidated statements of comprehensive income for the years ending December 31, 2024, 2023, and 2022. These expenses amounted to $2.1 million, $0.8 million, and $1.0 million, respectively. During the year ended December 31, 2024, the company decreased its reserve for uncertain tax positions by $1.9 million, while during the years ended December 31, 2023 and 2022, the company decreased its reserve by $0.3 million and $1.4 million respectively, for potential liabilities. The adjustment of these reserves affected the Company's effective tax rates by approximately 0.1%, 0.23% and 0.2% in the years ended December 31, 2024, 2023 and 2022, respectively. The company has recorded $0 for interest and penalties related to uncertain tax positions in each of the three years ended December 31, 2024, 2023 and 2022.