Innsuites Hospitality Trust Reports 4% Revenue Increase but Net Loss of $556,746 for Nine Months Ending October 31, 2024

Innsuites Hospitality Trust reported its financial results for the nine months ending October 31, 2024, revealing total revenues of approximately $5.96 million, a 4% increase from $5.75 million in the same period last year. However, the company experienced a consolidated net loss of $556,746, a significant decline from a net income of $611,693 in the prior year, resulting in a loss per share of $0.09 compared to earnings of $0.03 per share in the previous fiscal period. The operating loss for the nine months was $253,709, up from a loss of $129,819 in the same period last year.

The Trust's operational expenses increased by 6% to $6.21 million, driven by higher costs associated with hotel operations. Notably, room expenses rose to $1.93 million, reflecting increased occupancy, while food and beverage expenses decreased significantly by 48% to $72,000 due to tighter cost controls. General and administrative expenses also saw a rise, totaling $1.66 million, primarily due to reduced corporate staffing costs. The Trust's total equity decreased to approximately $1.65 million, down from $3.26 million at the same time last year.

In terms of strategic developments, the Trust continues to manage two hotels in Arizona and New Mexico, branded under the InnSuites and Best Western names. The company is actively seeking to sell its hotel properties within the next 36 months, aiming to capitalize on their market value, which management believes is significantly higher than their book values. The Trust is also exploring a potential merger with a larger private entity to enhance its market presence.

Operationally, the Trust reported a slight decline in occupancy rates, with the Tucson hotel at 72.38% and the Albuquerque hotel at 89.51%. However, the average daily rate (ADR) improved for both properties, indicating a positive trend in pricing power. The Trust's management is optimistic about continued growth in the travel industry, anticipating stable hotel occupancy and modest increases in room rates for the current fiscal year.

Looking ahead, the Trust is focused on improving its financial performance through strategic asset management and potential diversification into clean energy investments via its stake in UniGen Power, Inc. The management believes that the ongoing recovery in the hospitality sector will support revenue growth, although challenges such as inflation and economic conditions remain. The Trust's liquidity position is bolstered by available credit lines and cash reserves, which management believes will be sufficient to meet its financial obligations in the near term.