106-year-old hotel chain faces multiple closures nationwide | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

For many families, vacations are among the most anticipated moments of the year. And drawn by loyalty rewards programs and familiarity, many travelers remain devoted to the same hotel chains for decades.

However, various global economic disruptions and mounting challenges across the hospitality industry have begun to strain even the most established brands. In recent months, one well-known hotel chain has faced a growing wave of closures.

The U.S. hotel market was valued at $263.21 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 7.1% through 2030, according to Grand View Research’s latest report. While long-term growth prospects remain positive, the industry has endured significant setbacks.

The 43-day U.S. government shutdown triggered thousands of flight delays and cancellations worldwide, resulting in $6.1 billion in losses across travel-related sectors, according to the U.S. Travel Association.

Those disruptions rippled through hotels nationwide, but even so, those losses are nothing compared to the devastation caused by the Covid pandemic. By mid-February 2020, the hotel industry had already lost more than $46 billion in room revenue, with projections of $76.4 billion in losses and 670,000 layoffs by the end of that year, according to data gathered by RSM.

Founded in 1919, Hilton Worldwide Holdings Inc. (HLT) manages and franchises the DoubleTree brand. While it has survived more than 107 years, recent pressures have tested its resilience, resulting in multiple DoubleTree closures across the U.S.

DoubleTree by Hilton is closing in Downtown Cleveland

One of the most recent closures involves the DoubleTree by Hilton, located at 1111 Lakeside Ave E in Downtown Cleveland. The hotel is set to permanently shut down on January 30, 2026, resulting in the layoff of approximately 66 employees, according to a notice letter to the city, county, and state of Ohio.

In the notice, the company cited “business reasons which are out of the company’s control,” adding that it had “no ability to undertake remedial measures that would mitigate or avoid the closure.”

Built in 1973, the 17-story, 378-room hotel previously operated as a Holiday Inn before being acquired by Cami Hotel Investments in 2007 for $10.7 million. The purchase was followed by a $15 million renovation completed the next year, according to a Hotel Online press release.

Despite its prime location near Lake Erie and popular attractions such as Huntington Bank Field, home of the NFL‘s Cleveland Browns, and several nearby museums, the hotel has struggled financially in recent years.

Operational underperformance led to mounting unpaid bills and declining revenues, with the COVID-19 pandemic accelerating the property’s financial demise. In October 2019, the prior owner, Cami Hotel Investments II LLC of Everett, Washington, filed for foreclosure after defaulting on approximately $35 million in debt, according to court records. Three months later, Crescent Hotels and Resorts was appointed as the receiver.

By May 2025, the hotel posted an occupancy rate of 27.58%, with an average daily rate of $131.18 and revenue per available room (RevPAR) of $36.18, according to service reports obtained by Costar.

That underperformance resulted in a 58.5% decline in the hotel’s loan valuation, from $40 million to $16.6 million by February 2024, totaling $25.4 million in losses.

The DoubleTree by Hilton hotel in Downtown Cleveland is permanently closing.

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DoubleTree’s broader wave of closures

The Downtown Cleveland closure is not an isolated incident. In recent months, at least three additional DoubleTree by Hilton hotels have announced permanent shutdowns.

DoubleTree recent closures

Memphis, Tennessee: Closed November 30, 2025, impacting 88 workers (Source:Fox 13)
Plymouth, Philadelphia: Closed November 25, 2025 (Source:Philadelphia Business Journal)
Monroeville, Pennsylvania: Closed June 1, 2024, affecting 80 employees (Source:CBS News)

It’s important to note that DoubleTree by Hilton operates primarily as a franchised brand. Most properties are independently owned and operated by third-party hotel owners who license the Hilton brand. As a result, individual closures typically reflect property-level financial struggles, rather than systemic issues with the DoubleTree brand itself.

Hilton operates 711 total DoubleTree properties, 167 of which are company-managed and 544 of which are franchised or licensed, according to its third quarter of fiscal 2025 earnings report.

Hilton lowers its full-year outlook

While Hilton remains financially strong and a leader in the hospitality sector, it has not been immune to industry headwinds. Total company revenue increased 8.8% year over year in the third quarter to $3.12 billion. However, U.S. RevPAR fell 2.3% during the same period.

Hilton CEO Christopher J. Nassetta attributed this decline to “unfavorable holidays and events, softer international inbound to the U.S., declines in U.S. government-related travel, and portfolio renovations” during the company’s latest earnings call.

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Despite those challenges, Nassetta expressed confidence about the business’s long-term performance.

“We remain optimistic, that in the U.S., lower interest rates, a more favorable regulatory environment, certainty on tax policy, and a significant investment cycle will accelerate economic growth and travel demand, and, when paired with limited industry supply growth, should drive stronger RevPAR growth over the next several years,” he said in the Q3 2025 report overview.

During the quarter, the occupancy rate at Hilton’s U.S. hotels decreased by 1% to 74.5%, while DoubleTree’s occupancy rate declined by 0.4% to 71.6%.

As a result, Hilton revised its full-year 2025 RevPAR outlook downward to a growth range of 0% to 1%.

Hospitality industry experts remain cautiously optimistic

Despite closures and layoffs, many industry experts believe the hospitality sector is beginning to stabilize.

“Even as RevPAR growth bifurcation persists, supply growth is finally expected to normalize across chain scales after several years of constraint for the midscale and economy chain scales,” said Principal, Real Estate & Hospitality Abhi Jain at PwC U.S. in a statement.

Others emphasized that cost-cutting must be balanced carefully with guest satisfaction.

“Implementing cuts can help ease the economic burden, but it’s important to make sure these cuts don’t affect the guests’ experience,” said Expert Market Senior Grow Online & Business Software Expert Tatiana Lebreton. “After all, guests are the primary source of revenue, so degrading their experience at your establishment isn’t a good strategy in the long term.”

Looking ahead, analysts expect the industry to continue adapting rather than return to past cycles.

“If 2025 was a year of recalibration, 2026 offers a slow, deliberate step forward,” said PwC industry analysts.

“The industry isn’t reverting to past cycles, nor entering decline. It’s adapting to a landscape where growth should be earned. For owners, operators, and brands, progress will hinge on navigating tighter margins, evolving guest needs, accelerating technology and AI disruption, and persistent workforce constraints.”