PHOENIX, Dec. 1 /PRNewswire-FirstCall/ -- InnSuites Hospitality Trust
Highlights:
* Operating income increased $1.0 million, or 312%, to $1.4 million for
the first nine months of fiscal year 2007.
* Net income attributable to Shares of Beneficial Interest was $339,000,
or $0.04 per basic share for the nine months ended October 31, 2006.
* The Trust's operations, including occupancy and average daily rate,
continue to follow the industry trends upwards.
InnSuites Hospitality Trust reported operating income of $1.4 million for the nine months ended October 31, 2006, an improvement of $1.0 million from the prior year period operating income of $335,000. This increase is consistent with a strong hospitality industry and reflects the continued improvement in the operations of the Trust's five core suite hotels and improved management and licensing fee revenues.
The Trust reported operating income of $213,000 for the three months ended October 31, 2006, an improvement of $409,000 from the prior year period loss of $(196,000), further reflecting the continued improvement in the operations of the Trust's five core suite hotels.
The Trust reported net income attributable to Shares of Beneficial Interest of $339,000, or $0.04 per basic and $0.01 per diluted share, for the nine months ended October 31, 2006, compared to $697,000, or $0.08 per basic and $0.05 per diluted share, for the prior year period. The prior year period included a gain on the disposition of the Phoenix, Arizona hotel property of $1.8 million, $1.2 million of which was attributable to Shares of Beneficial Interest.
The Trust reported net loss attributable to Shares of Beneficial Interest of $(6,000), or $(0.00) per basic and diluted share, for the three months ended October 31, 2006, an improvement of $365,000 from a net loss of $(372,000), or $0.04 per basic and diluted share, for the prior year period.
"The industry trends in terms of occupancy and rate have been strong in 2006 and we expect these trends to continue in 2007," said James Wirth, President and CEO. "InnSuites has benefited from these trends in the last twelve months and looks forward to continue benefiting over the next twelve months. In addition, InnSuites is working to control labor, technology, amenity, and other costs to augment the strong industry trends in the year ahead to improve operating profits and EBITDA."
For the nine month period ended October 31, 2006, the Trust reported revenue of $16.5 million, an increase of $333,000, or 2.1% from $16.1 million in the prior year period. The Trust's revenues for the nine month period ended October 31, 2006 reflect the absence of the Trust's Phoenix, Arizona property, which was sold during the second quarter of fiscal year 2006. This was more than offset by improved occupancy, increased management and licensing fees, and payroll reimbursements received in connection with management agreements.
For the three month period ended October 31, 2006, the Trust reported revenue of $5.0 million, an increase of $324,000, or 6.9% from $4.7 million in the prior year period. This increase reflects stronger sales at the Trust's hotels, particularly in southern California.
The Trust's hotel operations continue to benefit from improved economic and industry conditions, with occupancy 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.
On December 1, 2006, the Trust increased its line of credit from $700,000 to $1.0 million with Rare Earth Financial L.L.C, an affiliate of Mr. Wirth, our President, CEO and largest shareholder, to continue to facilitate the upgrade of all five Trust properties and the potential conversion of two of its properties to individual condo ownership.
The Trust has added an Oceanside/North San Diego County property, owned by a third party, to its reservation and trademark system, replacing its reservations affiliation with its former San Diego, California location.
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 1,641 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. For condominium hotel information, visit www.condohotelvacation.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, (iii) expectations that the travel and hospitality industries will continue to rebound in the near future, and (iv) expectations of the benefits of condo-hotel conversions. 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 which 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 strategy, 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 obligations, n) terrorist attacks or other acts of war, o) outbreaks of communicable diseases, p) natural disasters, q) loss of key personnel, r) market demand or lack of demand for condo-hotel conversions, s) 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 t) uncertainties the Trust might encounter in changing from REIT tax status 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.
