PHOENIX, June 14 /PRNewswire-FirstCall/ -- InnSuites Hospitality Trust (AMEX:IHT) Highlights: -- Operating income increased $300,000, or 23.5%, to $1.6 million for the
first three months of fiscal year 2008 ended April 30, 2007 compared to
the period ended April 30, 2006. -- Net income attributable to Shares of Beneficial Interest was $899,000,
or $0.08 per diluted share for the three months ended April 30, 2007 up
from $0.06 in the prior year first quarter. -- The Trust's operations, including REVPAR and average daily rate,
continue to follow the industry trends upward.
InnSuites Hospitality Trust reported operating income of $1.6 million for the three months ended April 30, 2007, an improvement of $300,000, up 23.5% from the prior year period operating income of $1.3 million. This increase is consistent with the strong hospitality industry and is reflective of the Trust's continued improvement in the operations of it's five core suite hotels as well as improved management and licensing fee revenues.
The Trust reported net income attributable to Shares of Beneficial Interest of $899,000, or $0.10 per basic and $0.08 per diluted share, up over 31% for the three months ended April 30, 2008, from $686,000, or $0.07 per basic and $0.06 per diluted share, for the prior year period.
"The industry trends in terms of occupancy and rate were strong in fiscal 2007 (February 1, 2006 to January 31, 2007) and we expect these trends to continue in fiscal 2008," said James Wirth, President and CEO. "InnSuites has benefited from these trends in the last eighteen months and looks forward to continue benefiting over the next twelve months. In addition, InnSuites has controlled labor costs, increased technology and upgraded suites to augment the strong industry trends in the year ahead to improve operating profits and asset value as well as shareholder value." For the three month period ended April 30, 2007, the Trust reported revenue of $6.5 million, consistent with the prior year period. The Trust's revenues for the three month period ended April 30, 2007 reflect the strong economy producing high occupancies and rates, increased management and licensing fees, and payroll reimbursements received in connection with management agreements.
The Trust's hotel operations continue to benefit from improved economic and industry conditions, with occupancy remaining strong and average daily rate at the Trust properties increasing over the prior year period. In addition, the Trust continues to benefit from management and trademark licensing agreements acquired during fiscal year 2005.
Your Suite Choice(R)-- Value Concept InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality trust owning 5 moderate service and full service suite hotels containing 843 hotel suites and managing and/or licensing 11 hotels with 1,640 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, and (iii) expectations that the travel and hospitality industries will continue to 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 that may be charged by InnSuites Hotels in response to market rental rate changes or otherwise, c) seasonality of our business, d) interest rate fluctuations, e) changes in governmental regulations, including federal income tax laws and regulations, f) competition, g) any changes in the Trust's financial condition or operating results due to acquisitions or dispositions of hotel properties, h) insufficient resources to pursue our current growth strategies, i) concentration of our investments in our InnSuites Hotels(R) brand, j) loss of franchise contracts, k) real estate and hospitality market conditions, l) hospitality industry factors, m) our ability to meet present and future debt service obligations, n) terrorist attacks or other acts of war, o) outbreaks of communicable diseases, p) natural disasters, q) loss of key personnel, r) 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, and s) uncertainties the Trust might encounter in changing from a real estate investment trust to a tax-paying entity. 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.innsuites.com/ http://www.innsuitestrust.com/
|