AMEX:IHT Phoenix, Arizona 85020
FOR
FURTHER INFORMATION:
602-944-1500
email: mberg@innsuites.com
INNSUITES’ OPERATING
INCOME DOWN
Summary of Third Quarter:
·
InnSuites Hotels
are affected by the economic conditions being felt industry wide.
·
InnSuites
reclassified its hotels from “held for sale” to “held and used” resulting in a
reduction of income after recording catch-up depreciation expense of $1.9
million in the third fiscal quarter.
·
Operating income after
the $1.9 million depreciation catch-up declined $2.2 million, or 90%, to
$259,000 for the first nine months of fiscal year 2009 ended October 31, 2008
compared to the nine-month period ended October 31, 2007.
InnSuites Hospitality
Trust reported
operating income of $259,000 for the first nine months of fiscal year 2009
ended October 31, 2008, a decline of $2.2 million, or 90%, from the prior year
nine-month period operating income of $2.5 million. This decrease was due to
the current economic recession and the reclassification of the Trust’s hotel
properties from “held for sale” to “held and used” in the third fiscal quarter
ended October 31, 2008. As a result of this reclassification, the Trust
recorded $1.9 million in previously suspended depreciation expense in the third
fiscal quarter ended October 31, 2008.
For the nine-month period ended October 31, 2008, the
Trust reported a net loss
attributable to Shares of Beneficial Interest of $645,000, or $(0.07) per basic
and diluted share, down from net income attributable to Shares of Beneficial
Interest of $1.1 million, or $0.12 per basic share and $0.08 per diluted share
for the prior year nine-month period.
The fiscal third quarter
(August 1, to October 31, 2008) results for InnSuites Hospitality Trust show
operating income down to a loss attributable to Shares of Beneficial Interest of
$(2.4 million) from income attributable to Shares of Beneficial Interest of $1.1
million during the prior year comparable three-month period. Basic and diluted loss
per share was $(0.25), down from $0.06 income per share basic and $0.4 income per
share diluted in the prior year three-month period, showing the effects of the
economic recession and the recording of the catch-up depreciation in the fiscal
third quarter as a result of reclassifying the Trust’s hotels from “held for
sale” to ‘held and used.”
For the remainder of the current fiscal year, InnSuites anticipates 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 five 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) 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,
(b) fluctuations in hotel occupancy rates, c) changes in room rental rates that
may be charged by InnSuites Hotels in response to market rental rate changes or
otherwise, d) seasonality of our business, e) interest rate fluctuations, f)
changes in governmental regulations, including federal income tax laws and
regulations, g) competition, h) any changes in our financial condition or
operating results due to acquisitions or dispositions of hotel properties, i)
insufficient resources to pursue our current strategy, j) concentration of our
investments in our InnSuites Hotels® brand, k) loss of franchise contracts, l)
real estate and hospitality market conditions, m) hospitality industry factors,
n) our ability to meet present and future debt service obligations, o)
terrorist attacks or other acts of war, p) outbreaks of communicable diseases,
q) natural disasters and r) loss of key personnel. 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.