AMEX:IHT Phoenix, Arizona 85020
FOR
FURTHER INFORMATION:
602-944-1500
email: mberg@innsuites.com
INNSUITES’ EARNINGS PER
SHARE UP 275%
Highlights:
·
Fully diluted
earnings per share increased to $0.15, or 275%, from $0.04 over the prior year
six-month period.
·
Operating income
increased $1.2 million, or 87%, to $2.6 million for the first six months of
fiscal year 2009 ended July 31, 2008 compared to the six-month period ended
July 31, 2007.
InnSuites Hospitality
Trust reported
operating income of $2.6million for the first six months of fiscal year 2009
ended July 31, 2008, an improvement of $1.2 million, or 87%, from the prior
year six-month period operating income of $1.4 million. Components of the
increase in earnings include the continuing improvement in the operations of
the Trust’s core hotels, successful rate management strategies and reduced
depreciation on assets held for sale of $950,661 for the six-month period ended
July 31, 2008.
The Trust reported
net income attributable to Shares of Beneficial Interest of $1.6 million, or
$0.18 per basic and $0.15 per diluted share, an increase of over 198% for the
six months ended July 31, 2008, from $548,000, or $0.06 per basic share and
$0.04 per diluted share, for the prior year six-month period.
The second fiscal quarter (May
1, to July 31, 2008) results for InnSuites Hospitality Trust show operating
income up to $438,000 from a loss of $(159,000) during the prior year-three
month period. Fully diluted earnings per share was $0.00, up from $(0.04) in
the prior year three-month period, showing a continuation of past trends. The
fiscal 2008 year-end fully diluted earnings per share of $0.07 were also up
from the prior year-end loss of $(0.01) per diluted share. These large
increases are attributable to increased customer satisfaction based on
continuation of extensive refurbishment with flat-screen TV’s, granite countertops
and both free hard-wired and WiFi hi-speed internet in all of InnSuites studios
and suites, a new rate setting management software, better cost control and
reduced depreciation on assets held for sale of $474,858 for the three-month
period ended July 31, 2008.
For the remainder of the current fiscal year, InnSuites sees increased
competition driving lower occupancy levels due to the current economic
conditions. However, InnSuites is experiencing strength relative to the rest of
the industry with the continuation of refurbishing, boutique fashion trends, as
well as tightened cost control and internet marketing as more and more
travelers move to the value-oriented InnSuites Suite Hotels and value suite
concept “By the day and extended stay.”
Management believes the
current share price does not fully reflect the underlining value of assets.
InnSuites continues to seek methods to increase shareholder value, including
potential asset dispositions.
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 10 hotels with 1,562 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 we intend 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 our financial and operating
results, (ii) expectations of reductions in costs incurred by us, and (iii)
expectations that the travel and hospitality industries will continue to improve
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 our financial condition or operating results due
to acquisitions or dispositions of hotel properties, h) insufficient resources
to pursue our current strategy, 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, and 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
we operate or will operate. From time to time, these and other risks are
discussed in our Annual Report on Form 10-K and other filings with the
Securities and Exchange Commission.