InnSuites Hospitality Trust (IHT) Reports First Quarter Income
PHOENIX, June 15 /PRNewswire-FirstCall/ -- InnSuites Hospitality Trust
(AMEX:IHT) Highlights: * Net income attributable to Shares of Beneficial Interest for the three
months ended April 30, 2005 totaled $404,000, compared to $2.0 million
in the prior year period. * Trust revenue totaled $6.6 million, compared to $7.4 in the prior year
period. * The Trust has agreed to sell its Phoenix, Arizona property for
$5.1 million.
InnSuites Hospitality Trust reported net income attributable to Shares of
Beneficial Interest of $404,000, or $0.05 per basic and $0.03 per diluted
share, compared to net income of $2.0 million, or $0.94 per basic and $0.56 per
diluted share, in the prior year period. The prior year period included gains
on the disposition of hotels totaling $5.1 million. The portion of the gain
attributable to Trust shareholders was $2.9 million, or $1.32 per basic and
$0.64 per diluted share. The prior year period also included a charge of
$854,000, or $(0.39) per basic and $(0.11) per diluted share, for the
cumulative effect of adopting FIN 46R. Excluding the gain on disposition of
hotels and charge for adoption of FIN 46R, prior year income was $25,000
compared to $404,000 in the current year.
The Trust reported revenue totaling $6.6 million, a decrease of $785,000 or
10.7% from the prior year period total of $7.4 million, reflecting the effect
of the disposal of certain hotels. The decrease in revenue attributable to the
disposed hotels was $905,000 when comparing the first quarter of fiscal year
2006 to fiscal year 2005.
The Trust has entered into an agreement to sell its Phoenix, Arizona hotel for
$5.1 million, which is $1.9 million above its carrying value. The buyer is an
affiliate of James Wirth, President and CEO of the Trust and Chairman of the
Board of Trustees. The Trust expects the sale to remove a source of operating
losses and result in an increase in shareholders' equity of approximately $1.2
million in fiscal year 2006.
Positioned for Full Service Hotel Operations The Trust's hotel operations continue to recover from the recent difficulties
in the travel and hospitality industries. The Trust also continues to benefit
from the disposal of underperforming properties during the prior two fiscal
years. The Trust's management and trademark licensing agreements, acquired
during fiscal year 2005, have been a profitable area for its shareholders.
Although the Trust has benefited in these areas, it continues to take
aggressive steps to cut costs and increase sales, as well as evaluate the
performance of the hotels in its portfolio.
Your Suite Choice(R)- Value Concept InnSuites Hospitality Trust is a mid-market studio and two-room suite
hospitality business trust owning 6 moderate service and full service hotels
containing 947 hotel suites and managing and/or licensing 11 hotels with 1,692
suites located in Arizona, New Mexico, Texas and Southern California. For
reservations, call 1-888-INNSUITES, or visit http://www.innsuites.com/. For
investor information, visit http://www.innsuitestrust.com/.
Certain matters within this press release may be discussed using
forward-looking language as specified in the 1995 Private Securities Litigation
Reform Act and InnSuites Hospitality Trust intends that such forward-looking
statements be subject to the safe-harbor created thereby. Such forward-looking
statements include, but are not limited to: (i) expectations of growth in the
financial and operating results of the Trust, (ii) expectations of reductions
in costs incurred by the Trust, (iii) expectations to refinance or dispose of
individual hotels, and (iv) expectations that the travel and hospitality
industries will rebound in the near future. InnSuites Hospitality Trust
cautions that these statements may involve known and unknown risks,
uncertainties and other factors that may cause the actual results or
performance to differ from those projected in the forward-looking statements
contained herein. Such risks include, but are not limited to: a) fluctuations
in hotel occupancy rates, b) changes in room rental rates which may be charged
by InnSuites Hotels in response to market rental rate changes or otherwise, c)
interest rate fluctuations, d) changes in federal income tax laws and
regulations, e) competition, f) any changes in the Trust's financial condition
or operating results due to acquisitions or dispositions of hotel properties,
g) real estate and hospitality market conditions, h) hospitality industry
factors, i) terrorist attacks or other acts of war, j) outbreaks of
communicable diseases, k) natural disasters, and l) local or national economic
and business conditions, including, without limitation, conditions which may
affect public securities markets generally, the hospitality industry or the
markets in which the Trust operates or will operate. From time to time, these
and other risks are discussed in the Trust's Annual Report on Form 10-K and
other filings with the Securities and Exchange Commission. DATASOURCE: InnSuites Hospitality Trust CONTACT: Marc Berg, Executive Vice President of InnSuites Hospitality Trust, +1-602-944-1500, Web site: http://www.innsuitestrust.com/ Web site: http://www.innsuites.com/
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