Acrophyte Hospitality Trust (ACRO-HT) has reported a 1.6% decline in gross revenue for the first nine months of 2026, attributed to the divestment of two hotels and increased operating expenses. The trust’s net property income also fell by 2.1%, impacted by higher utility and insurance costs. Despite these challenges, same-store gross revenue saw a 1.8% increase, supported by a 2.1% growth in average daily rate (ADR).
The US lodging market showed resilience, with occupancy improving to 64.6% and ADR rising by 4% to US$167. This growth was driven by major events such as the FIFA World Cup and America 250 celebrations. However, the market faces risks from normalising event-driven demand and elevated energy costs.
James Sung Jung, CEO of the Managers, noted, “Our portfolio delivered a stronger third quarter, with same-store gross revenue and NPI rising 5.1% and 6.6% year over year, driven by solid ADR and occupancy growth and continued cost discipline.”
In terms of capital management, ACRO-HT completed the sale of Hyatt Place Memphis Primacy Parkway for US$6.93m, with proceeds earmarked for renovations and debt repayment. The trust holds US$31.9m in cash reserves and is negotiating loan extensions with lenders.
Looking ahead, ACRO-HT remains focused on operational efficiency and financial flexibility amidst ongoing economic uncertainties, including inflation and interest rate pressures. The trust’s strategy includes optimising its portfolio and managing costs effectively.
