The year 2025 brought both challenges and opportunities for the majority of hotels. It’s safe to say that the most luxury hotels were better positioned to thrive, even amid the challenging economic situation.
In November, major hotel giants such as Wyndham, Hilton, Marriott, and Hyatt reported U.S. RevPAR (revenue per available room) declines in the third quarter. Marriott’s results confirmed the importance of a luxury offering in times of economic uncertainty.
Occupancy rates declined throughout 2025:
- November 2025: Occupancy was 57.9%, down ~2.8% year over year.
- October 2025: Occupancy fell for the eighth consecutive month. Source: Hotel Online
While upscale hotel chains had a solid 2025 with some even expanding and flourishing, others were forced to close doors or file for Chapter 11 bankruptcy.
In September 2025, the company behind hotels including The Tuscany and Hotel 27 in New York City abruptly ceased operations and stranded guests who had booked stays.
In November, short-term rental platform Sonder filed for Chapter 7 bankruptcy and liquidation after Marriott terminated a licensing agreement, reported Veronika Bondarenko for TheStreet.
Official data on the number of hotels that closed last year are not yet available; however, in 2024, 742 U.S. hotels closed, out of which 475 closed permanently, 71 were temporarily closed for renovation, and many others could reopen, according to data from CoStar.
On January 2, 2026, one special hotel joined the group and shut its doors for good.
The Cartoon Network Hotel has permanently closed after six years, on January 1, 2026.
George Sheldon/Shutterstock.com
Cartoon Network Hotel permanently closes after six years
The Cartoon Network Hotel near Dutch Wonderland theme park in Pennsylvania has permanently closed on January 1, 2026, after six years of operation.
“As we wrap up this chapter of the Cartoon Network Hotel, we want to say a heartfelt thank you to every guest who stayed, laughed, splashed, explored, and made this place feel truly magical. The mathematical memories and smiles you shared with us will always mean the world. Thank you for being part of our adventure,” the hotel posted on its Instagram page.
The opening of the Cartoon Network Hotel in January 2020 was unfortunately timed. It quickly had to shut down due to the Covid pandemic, making it challenging to stay afloat from the start.
Fans who visited the hotel were greeted by Jake the Dog and Finn the Human waving from the hotel’s roof. Inside, they could wander through themed rooms, from The Powerpuff Girls through Ben 10 to Steven Universe, and swim in animation-themed pools, writes ABC 27.
Cartoon Network Hotel was the world’s first and only hotel of its kind, according to its official statement.
Cartoon Network Hotel history and milestones
- Original site: The property began as the Continental Inn before being purchased by Palace Entertainment, the owners of nearby Dutch Wonderland, for redevelopment in 2018. Source: Wikipedia
- Partnership announced: In October 2018, Cartoon Network and Palace Entertainment revealed plans to convert the site into a themed hotel, marking CN’s first U.S. hotel project. Source: Cartoon Network Hotel
- World’s first Cartoon Network Hotel: Construction followed the announcement, aiming to bring immersive Cartoon Network experiences to guests. Source: Central Penn Business Journal
- Grand opening: The hotel officially opened in January 2020 with 159 guest rooms, including four Dream Suites located above the main lobby. Source: Cartoon Network Hotel
- Theme and features: Rooms and areas are styled after shows including “Adventure Time,” “The Powerpuff Girls,” “We Bare Bears,” “Steven Universe,” “The Amazing World of Gumball,” and “Ben 10.” Source: Cartoon Network Hotel
- Pandemic impact: Shortly after opening, the hotel temporarily closed due to the pandemic and later reopened with enhanced safety protocols (summer 2020). Source: Cartoon Network Hotel press release
- Cultural destination: Throughout its operation, it became a unique family travel destination with immersive cartoon‑centric experiences. Source: Cartoon Network Hotel
- Closure & rebranding: The hotel closed on January 1, 2026, when the Cartoon Network licensing agreement ended; plans are in place to rebrand it as the Dutch Wonderland Inn in late March 2026 under the amusement park’s branding. Source: Oh! Epic
What’s next for the location of Cartoon Network Hotel?
Even though the Cartoon Network Hotel has closed its doors for good, Dutch Wonderland has exciting plans, and it will remain in the hotel business. It plans to rebrand the property as the Dutch Wonderland Inn, reports PennLive.
The new inn will offer 155 rooms for families and four suites. It will feature an arcade, outdoor pool with a splash pad, an indoor year-round pool, and a restaurant.
It is set to open in late March 2026, with rates starting at $199 per night and Stay and Play packages that would consist of room and up to three single-day tickets for the amusement park.
Cartoon Network fans react to the hotel’s closure
The news of the Cartoon Network Hotel’s closure quickly spread across the internet, with fans sharing updates and reactions on multiple social media platforms. On Reddit, several threads discussed the announcement, with the overall sentiment leaning heavily toward nostalgia and sadness.
“This makes me so sad. I wish I had a chance to go. I do hope they open up another location in the future,” wrote user androidlolita.
Many other users who hadn’t had the opportunity to visit, agreed, sharing regret that they missed their chance.
“I wanted to check it out, but live on the other side of the country. 🙁 I wish that it either was near a bigger tourist area like Disneyland, or its own resort so it was the destination,” wrote omgcheez.
On the thread announcing the news of the hotel’s planned branding from September, users were more critical and skeptical, commenting on the hotel’s quality and location, and there were also some negative views regarding Cartoon Network itself.
Others focused on what is good and shared nice memories from their stay at the hotel.
“Actually here right now. People are too picky. Despite the fact this place is closing in just a few months, the staff really do a lot to make it feel special for young kids. There are crafts, character meets, my 4-year-old loved the themed room and TVs in bunk beds. Splash pad is nice,” wrote AndreLeGeant88.
The user further noted that Cartoon Network Hotel was more affordable than Disney, and that people should take that into consideration before complaining about the property. “If you want Disney-level quality, you have to expect Disney-level prices, which increasingly is outside the reach of most American families,” they pointed out.
Two weeks ago, one user started a thread sharing an amazing experience they had there just before the closing.
“I honestly had an incredible time, we only stayed for one night, but there was plenty to do in the area! I can understand the harsh criticism coming from parents since there’s not a ton for kids in the area (minus Dutch wonderland), but for a bunch of animation majors in college this was a dream come true! Seeing this gem of a hotel disappear absolutely breaks my heart,” wrote user Violet_Archer.