AMEX:IHT Phoenix, Arizona 85020
FOR
FURTHER INFORMATION:
602-944-1500
email: mberg@innsuites.com
INNSUITES REPORTS 23.5%
INCREASE IN OPERATING INCOME
Highlights:
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
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.
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 www.innsuites.com. For investor information, visit 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® 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.