The U.S. hotel market took a clear hit in 2025. Operating income dropped, and major properties changed hands. For travellers planning stays this year, the shift matters.
Acrophyte Hospitality Property Trust (ACRO-HT) reported a net property income (NPI) drop of 13.9% in the first nine months of 2025 compared with the same period last year. The figure fell to US $29.1 million. The company also saw gross revenues slide by 6.3% to US $121.2 million.
Key factors drive this slide: property disposals, major renovations and weak demand from both domestic and international travellers.
Major Property Divestments Reduce Available Rooms
ACRO-HT sold key assets in 2024-2025, including the Hyatt House Shelton and the Hyatt Place Detroit Auburn Hills. These sales cut the company’s hotel count from 34 in 2024 to 32 by the end of the first nine months of 2025. The reduction translates into a 5.7% decrease in available rooms.
While these moves aim to restructure and optimise the portfolio, they have immediate consequences for travellers. Fewer rooms may mean tighter availability in some markets.
Renovations and Rising Costs Add Pressure
In addition to fewer properties, ACRO-HT has two recent renovations underway. These upgrades reduce room availability and curtail service capacity while work is ongoing.
Travel industry reports show that in 2025 the broader U.S. hotel sector faces higher labour, insurance and operational costs. A drop in occupancy and modest increases in average daily rates (ADR) further squeeze profit margins.
Travel Demand Hits a Wall
Demand weakness in 2025 compounds the challenge. A leading industry survey forecasts the full-year U.S. hotel occupancy rate at 62.3%, down from 63% in 2024. Revenue per available room (RevPAR) is expected to decline as well — a rare fall for the sector.
Domestic leisure travel continues growing modestly, yet international inbound visits hit headwinds. The U.S. Travel Association forecasts inbound travel to fall by around 6.3% in 2025.
Putting this together, it means: fewer travellers stay, more rooms sit empty, and hotels earn less in many markets.
Why Travelers Should Care
If you plan a U.S. trip in 2025, these shifts matter in concrete ways:
- Availability and pricing may tighten in cities where hotels sell assets or undergo renovation.
- Hotels may respond with discounts or promotional rates as they fight to fill rooms.
- Service levels might vary more, as some properties operate in a renovation-mode or with staffing constraints.
- Mid-scale and budget segment hotels appear most affected; luxury properties are showing more resilience.
Travel Tips for 2025 U.S. Visits
- Book early. With portfolios shrinking and demand uncertainty high, early bookings may secure better rates or preferred rooms.
- Look for promos in renovation zones. Hotels undergoing internal work may offer deals to offset temporary service reduction.
- Consider segment and location. Luxury hotels likely hold up better. Budget and mid-scale may face deeper headwinds.
- Watch international travel developments. If inbound travel remains weak, certain destinations may offer bargains—but services may remain lean.
How the Market Adjusts
Hotel operators are responding. Some are optimizing portfolios by shedding weaker assets, others upgrade guest experience, and all aim to control costs. The long view: the industry hopes to emerge with leaner, more efficient operations and better-equipped properties.
That said, 2025 looks uneven. Some reports suggest “zero revenue growth” or slight declines in RevPAR for U.S. hotels. The worst may be behind—but a clear upturn has not yet arrived.
What’s Ahead for ACRO-HT and Peers
For ACRO-HT, the strategy centers on portfolio optimisation and capital flexibility. They seek to ride out the soft phase and position for growth when demand rebounds.
For travellers, this means accommodations landscape may look different than a few years ago. Hotels will likely compete harder for guests, especially in non-luxury segments. Given that change, travellers can benefit—but they should stay alert to changing hotel conditions, availability and value.
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