InnSuites Hospitality Trust Reports Q2 2025 Financial Results with Revenue Decline and Increased Operating Income

InnSuites Hospitality Trust reported its financial results for the three months ended April 30, 2025, revealing a total revenue of $2.21 million, a decrease of 4% from $2.29 million in the same period last year. The decline in revenue was primarily attributed to a 5% drop in room revenues, which amounted to approximately $2.12 million compared to $2.24 million in the prior year. However, food and beverage revenue saw a significant increase of 35%, reaching approximately $30,000, up from $23,000 in the previous year. The Trust's operating income for the quarter was $222,396, an increase of 25% from $178,429 in the prior year.

The Trust's operating expenses decreased by 6% to $1.98 million from $2.12 million, contributing to the improved operating income. Notably, general and administrative expenses fell sharply by 23% to approximately $468,000, down from $606,000, due to cost-saving measures. Despite these positive operational metrics, the Trust reported a consolidated net income of $39,030, a decrease of 55% from $86,598 in the same quarter last year. The net loss attributable to controlling interests was $(121,032), compared to $(148,550) in the prior year, resulting in a net loss per share of $(0.01), an improvement from $(0.02) in the previous year.

Strategically, InnSuites is focusing on enhancing its hotel management services and diversifying its investments. The Trust has entered into a management agreement for InnDependent Boutique Collection Hotels, which aims to provide reservations and branding services to independent hotels. Additionally, the Trust holds a significant investment in UniGen Power Inc., a clean energy company, which it believes has high growth potential. The Trust is also exploring options for the sale of its hotel properties, with an estimated market asking price of $28 million for both the Tucson and Albuquerque hotels.

Operationally, the Trust's two hotels, located in Tucson, Arizona, and Albuquerque, New Mexico, have shown resilience despite the challenges posed by the competitive hotel market. The occupancy rate for the Albuquerque hotel was 89.12%, while the Tucson hotel experienced a decline to 79.90%. The Trust's management anticipates stable demand for leisure travel and limited new hotel supply in its markets, which could support revenue stability moving forward. The Trust's liquidity position remains cautious, with approximately $13,000 in cash and access to credit facilities totaling $2.25 million, which it believes will be sufficient to meet its financial obligations over the next twelve months.

Looking ahead, InnSuites Hospitality Trust is optimistic about its operational improvements and strategic initiatives. The management expects continued recovery in hotel occupancy and room rates, alongside ongoing cost control measures. The Trust aims to leverage its investments in UniGen and the revitalization of IBC Hotels to enhance its financial performance in the coming fiscal periods. However, the Trust acknowledges potential risks, including economic uncertainties and competitive pressures, which could impact its future results.