AMEX:IHT Phoenix, Arizona 85020
FOR
FURTHER INFORMATION:
602-944-1500
email: mberg@innsuites.com
INNSUITES REPORTS 21.1%
INCREASE IN OPERATING INCOME
Highlights:
·
Operating income
increased $247,000, or 21.1%, to $1.4 million for the first six months of
fiscal year 2008 ended July 31, 2007 compared to the six-month period ended July
31, 2006.
·
Net income
attributable to Shares of Beneficial Interest was $548,000, or $0.06 per basic
share for the six months ended July 31, 2007 up from $0.04 in the prior year
period.
·
The Trust’s
operations, including revenue per available room (“REVPAR”) and average daily
rate, continue to follow the industry trends upward.
InnSuites Hospitality Trust reported operating income of $1.4
million for the six months ended July 31, 2007, an improvement of $247,000, or 21.1%,
from the prior year six-month period operating income of $1.2 million. This increase is consistent with the strong
hospitality industry and is reflective of the Trust’s continued improvement in
the operations of its 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 $548,000, or $0.06 per basic and
$0.04 per diluted share, an increase of over 58.7% for the six months ended July
31, 2008, from $345,000, or $0.04 per basic and $0.02 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 July 31, 2007, the Trust reported revenue of $4.9
million, consistent with the prior year period.
Net loss attributable to Shares of Beneficial Interest was $(354,311)
down $14,000 from the prior year three month period ended July 31, 2006. The
Trust’s revenues for the three month period ended July 31, 2007 reflect the strong
economy producing high occupancies and rates, increased management and
licensing fees, and payroll reimbursements received in connection with
management agreements.
For the six-month period ended July 31, 2007 the Trust’s hotel
operations continued to benefit from improved economic and industry conditions,
with occupancy remaining strong at 74.6% and average daily rate increasing $5.11
over the prior year period. In addition,
the Trust continues to benefit from management and trademark licensing
agreements acquired during fiscal year 2005.
Funds From Operations
(“FFO”) is a widely used measure of a REIT’s performance that excludes non-cash
charges, including depreciation of real estate and gains and losses on disposal
of assets. FFO is an alternative
non-GAAP measure of a company’s cash flow and its ability to pay
dividends.
FFO increased approximately
$165,000 for the six month period ended July 31, 2007, reflecting an increase
of 15.4%, when compared to the prior year period. The increase was due
primarily to stronger operating results at the hotel properties. See
reconciliation below.
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For the Six Months Ended July 31, |
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2007 |
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2006 |
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Net Income (Loss) Attributable to Shares of
Beneficial Interest |
$ |
547,520 |
344,995 |
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Hotel Property Depreciation |
978,453 |
1,038,880 |
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Loss on Disposition of Hotels |
773 |
1,628 |
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Minority Interest Share of Depreciation and (Gain)
Loss on Dispositions |
(226,399) |
|
(249,908) |
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Funds from Operations |
$ |
1,300,347 |
|
1,135,595 |
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On September 10, 2007, the
Board of Trustees approved the purchase of up to 350,000 additional limited
partnership units in the Partnership and/or Shares of Beneficial Interest in
open market or privately negotiated transactions. Additionally, on September
10, 2007, the Board of Trustees ratified and approved the limited partnership
unit and Share of Beneficial Interest repurchases that occurred during the
period from June 1, 2007 through September 10, 2007.
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 1,642 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.