It appeared that by 1980, with popular music moving away from progressive rock, punk rock and disco, these elements would eventually meld themselves into new wave, which combined elements of all these styles using a combination synthesizer and guitar-based sound. Seeing this change in the music environment taking place, Hotel began work on their second album, "Half-Moon Silver", which was released by MCA in 1980. This second album contained strong AOR and was a bit edgier than the debut album. It lacked proper promotion and sold even less than the debut album, which led MCA to drop the act. The group stayed together to tour the club circuit, but disbanded in 1982.