Acrophyte Hospitality Trust (ACRO-HT) has announced its financial results for the first half of 2026, revealing a 2.6% decline in revenue to $76.1m. This decrease is primarily attributed to the divestment of two hotels, which led to a 4.8% reduction in available rooms. Despite these challenges, revenue on a same-store basis saw a modest increase of 0.4%.
Net property income fell by 6.1% to $16.9m, influenced by inflationary pressures, higher utility and insurance costs, and operational disruptions from renovations at four hotels. Gross Operating Profit also saw a decline, dropping 5.9% to $25.1m. The CEO of the Managers, James Sung Jung, highlighted the impact of these factors, stating, “Our operational performance in 1H 2026 was impacted by the absence of contributions from the divested hotels, which resulted in a 4.8% reduction in rooms available for the portfolio.”
The US lodging market showed resilience, with occupancy increasing by 0.9% and Average Daily Rate (ADR) growing by 3.8%, resulting in a 4.8% rise in Revenue Per Available Room (RevPAR). However, ACRO-HT faces significant capital expenditure requirements, with an estimated $100m needed for renovations and maintenance from FY2025 to FY2027.
In response to these financial pressures, the Boards have decided to suspend distributions to Stapled Securityholders from 1H 2026, with the suspension expected to last until 2H 2028, unless market conditions improve.
