Acrophyte Hospitality Trust (ACRO-HT) posted distributable income of US$4.9 million for the year ended Dec 31 2025, down 46.7 per cent year-on-year, after a smaller hotel portfolio and renovation-related disruptions weighed on earnings.
Full-year revenue slipped 6.0 per cent to US$158.6 million, while gross operating profit (GOP) retreated 10.4 per cent to US$53.4 million. Net property income (NPI) fell 16.3 per cent to US$37.1 million, and GOP margin eased to 33.6 per cent from 35.3 per cent. ACRO-HT declared a second-half distribution per stapled security (DPS) of 0.418 US cent, payable on Mar 30 2026, bringing FY2025 DPS to 0.850 US cent versus 1.595 US cents a year earlier. About US$0.5 million, or 10 per cent of the amount available for distribution, was retained for working-capital purposes.
Across the 32-property portfolio, rooms available contracted 5.5 per cent to 1.56 million after the divestment of one hotel and ongoing refurbishments at seven assets. Same-store revenue was broadly flat, but higher operating expenses, notably insurance and property taxes, translated into a 7.7 per cent drop in same-store GOP and a 14.3 per cent decline in NPI.
The trust disposed of Hyatt Place Detroit Auburn Hills for US$6.65 million in September. Two additional non-core assets—Hyatt Place Detroit Livonia (US$10.0 million) and Hyatt Place Memphis Primacy Parkway (US$7.75 million)—are under conditional sale agreements, with completion targeted by end-Q1 2026. Management plans to deploy sale proceeds toward renovation capex, debt reduction and general working capital.
Chief executive officer Lee Jin Yong said the earnings pullback reflected both the deliberate trimming of non-core assets and renovation works at high-performing hotels. He added that upgrading the portfolio remains central to safeguarding long-term value and sustaining returns, and highlighted continued efforts to bolster market-share capture and cost efficiency amid a softer U.S. lodging environment.
ACRO-HT ended the year with US$23.9 million in cash and cash equivalents, including reserves for upcoming capital projects. The trust noted that U.S. lodging demand weakened in 2025 as corporate, government and international travel softened against a backdrop of moderating economic growth, higher borrowing costs and subdued consumer sentiment.
Looking ahead, management will focus on completing ongoing renovations, executing planned divestments and maintaining disciplined capital management to navigate macroeconomic headwinds and support sustainable distributions.