IHT HOTEL REVENUES CONTINUE GROWTH

Rhea-AI Summary

InnSuites Hospitality Trust (NYSE American: IHT) reported continued revenue growth for Fiscal Year 2025, with total revenues reaching $7.6 million. The company's hotels in Tucson and Albuquerque showed strong performance, generating combined revenue of $1.6 million in the first two months of FY2025. Key metrics improved with Average Daily Rate (ADR) increasing by 2.28% and Revenue Per Available Room (REVPAR) rising by 0.49%. However, FY2025 marked IHT's first loss in four years. The company implemented significant cost-cutting measures, notably reducing Tucson Hotel's insurance costs from $450,000 to $100,000 annually. IHT maintains a diversification investment in UniGen Power Inc., potentially holding a 15-20% stake, and continues its 55-year tradition of uninterrupted dividends since 1971.

Positive

• Total revenues increased to $7.6 million in FY2025
• Strong hotel performance with $1.6 million combined revenue in first two months of FY2025
• ADR increased by 2.28% and REVPAR improved by 0.49%
• Significant cost reduction in insurance expenses, saving $350,000 annually
• Maintained 55-year streak of uninterrupted dividends
• Potential 15-20% ownership stake in clean energy company UniGen Power

Negative

• First fiscal year loss in four years during FY2025
• Multiple one-time non-cash adjustments affecting financial results
• High-risk investment in UniGen Power with uncertain returns
• Increased tariff and economic uncertainty affecting operations

Insights

Financial Analyst

IHT reports revenue growth but posts first loss in four years; implementing significant cost cuts while maintaining 55-year dividend streak.

InnSuites Hospitality Trust's financial results present a mixed picture that requires careful examination. While the company achieved total revenues of approximately $7.6 million for FY2025, representing continued growth, the company recorded its first unprofitable year after four consecutive profitable fiscal years. This profitability reversal is significant despite the positive top-line momentum.

The operational metrics show modest improvements with Average Daily Rate increasing by 2.28% ($2.22) and Revenue Per Available Room (REVPAR) growing by 0.49% ($0.36). However, these growth rates lag behind inflation, suggesting potential pressure on real earnings power.

The most promising development for future profitability is the dramatic reduction in insurance costs at the Tucson Hotel property. Annual insurance expenses are being slashed from approximately $450,000 to $100,000 for FY2026, representing $350,000 in annual savings. This cost-cutting measure could significantly improve operating margins if revenue trends remain positive.

Despite recording a loss, IHT has maintained its 55-year dividend history, with semi-annual payments continuing. The most recent dividend was paid February 5, 2024, with another anticipated for August 4, 2025. This commitment to shareholder returns amid profitability challenges suggests management confidence in future cash flows, though it also raises questions about long-term sustainability if profitability issues persist.

REIT Specialist

From a real estate investment perspective, IHT's strategy shows notable diversification beyond traditional hospitality assets. The trust has invested in UniGen Power Inc., a company developing patented clean energy generation technology. Through various financial instruments (stock, convertible bonds, and warrants), IHT could potentially secure a 15-20% ownership stake in UniGen if fully exercised.

Management explicitly characterizes this as a "high-risk investment offering high potential investment return if and when successful" - acknowledging the speculative nature of this diversification play. The release notes UniGen is currently raising capital, though IHT's participation remains uncertain.

The company's first-quarter FY2026 performance appears encouraging, with combined hotel revenue reaching approximately $1.6 million for February and March, exceeding the comparable period last year. This suggests the core hospitality business maintains competitive positioning despite broader profitability issues.

Management asserts that IHT's real estate assets are carried at book values "significantly below current market value," potentially indicating hidden asset value not reflected in financial statements. However, no specific properties or valuation metrics are provided to substantiate this claim.

The Trust's exploration of "additional diversification investment opportunities" beyond both hospitality and UniGen signals a potential strategic evolution that investors should monitor closely. This diversification strategy represents a departure from traditional REIT models that typically focus exclusively on real estate assets, introducing both additional opportunities and risks.

Phoenix, AZ, May 01, 2025 (GLOBE NEWSWIRE) -- InnSuites Hospitality Trust (NYSE American: IHT) reported annual results with continued revenue growth in Fiscal Year 2025, (February 1, 2024, to January 31, 2025), with Total Revenues increasing to approximately $7.6 million, a further increase from the prior Fiscal Year total.

IHT hotel operations were strong in the 2025 Fiscal Year ended January 31, 2025. Both the Tucson Hotel and Albuquerque Hotel also achieved excellent results for the combined months of February and March, of the current Fiscal Year. Combined Revenue for both hotels was approximately $1.6 million for the first two months of Fiscal 2025, an increase from the first two months of the prior Fiscal Year.

The Fiscal 2025 Combined Hotel Average Daily Rate (ADR) increased $2.22, an increase of 2.28% from the prior Fiscal Year. The Combined Revenue Per Available Room (REVPAR), also increased from the prior Fiscal Year, by $0.36, a 0.49% improvement.

InnSuites Hospitality Trust (IHT), in late 2019, made a diversification investment in UniGen Power Inc., (UPI), developing a patented, high profit potential, efficient clean energy generation innovation. With the continued growing demand for electricity from data centers plus the influx of electric cars, as well as projected growing needs for artificial intelligence, increased demand for electricity over the next five years is projected to approximately double. IHT holds stock, convertible bonds and warrants that, if fully exercised, could result in IHT holding an approximately up to 15-20% ownership stake in UniGen.

UniGen is currently concentrating on its next round of capital raising, which IHT may or may not participate in. UniGen is a high-risk investment offering high potential investment return if and when successful.

IHT management believes that due to real estate held on the books of IHT at book values believed to be significantly below current market value and due to the clean energy diversification high profit potential ahead, the IHT future looks bright. IHT management is also exploring additional diversification investment opportunities.

InnSuites Hospitality Trust Fiscal Year 2025 was its first Fiscal Year with a loss in the last four Fiscal Years, dating back to Fiscal Year ended 1/31/21. Going forward, IHT is focused on cost cutting at a time of increased tariff/economic uncertainty. For example, the Tucson Hotel specifically incurred annualized insurance costs totaling approximately $450,000 in Fiscal Year 2025, just ended. Those insurance-related costs have been reduced significantly to approximately $100,000 for the current Fiscal Year 2026, resulting in savings of approximately $350,000. Fiscal 2025 also included several one-time non-cash adjustments including adjusting Hotel Frequent Traveler Rewards, and property tax accruals. Modest improvements in total hotel revenue, improved operating profits due to cost cutting measures, the potential of the aforementioned various diversification opportunities, and being listed on the NYSE-American provide positive equitable assets, and all bode well for the continued success of the Trust. We believe that the Trust will once again be profitable in future years, especially with the potential success of and maturing of diversification investments.

Our most recent semi-annual dividend at the start of Fiscal Year 2026 extended IHT’s uninterrupted, continuous annual dividends to 55 years, since 1971, when IHT was first listed on the NYSE, with semi-annual dividends paid February 5, 2024, and anticipated for August 4, 2025.

For more information, visit www.innsuitestrust.com and www.innsuites.com.

Forward-Looking Statements

With the exception of historical information, matters discussed in this news release may include “forward-looking statements” within the meaning of the federal securities laws. All statements regarding IHT’s review and exploration of potential strategic, operational, and structural alternative diversification investments, and expected associated costs and benefits are forward-looking. Actual developments and business decisions may differ materially from those expressed or implied by such forward-looking statements. Important factors, among others, that could cause IHT’s actual results and future actions to differ materially from those described in forward-looking statements include economic effects of tariffs, the uncertain outcome, impact, effects and results of IHT’s success in finding qualified purchasers for its hospitality real estate, or a reverse merger partner, the success of additional financing and timing of the UniGen clean energy and other potential diversification innovations, the continuation of semi-annual dividends in the year(s) ahead, collections of receivables, and other risks discussed in IHT’s SEC filings. IHT expressly disclaims any obligation to update any forward-looking statement contained in this news release to reflect events or circumstances that may arise after the date hereof, all of which are expressly qualified by the foregoing, other than as required by applicable law.

FOR FURTHER INFORMATION:

Marc Berg, Executive Vice President
602-944-1500
email: mberg@innsuites.com

INNSUITES HOTEL CENTRE
1730 E. NORTHERN AVENUE, #122
Phoenix, Arizona 85020
Phone: 602-944-1500

FAQ

What were IHT's financial results for Fiscal Year 2025?

IHT reported total revenues of $7.6 million in FY2025, showing growth from the previous year. However, the company recorded its first loss in four fiscal years, while maintaining its dividend payments.

How much did IHT reduce its insurance costs at the Tucson Hotel?

IHT reduced its annual insurance costs at the Tucson Hotel from approximately $450,000 in FY2025 to approximately $100,000 for FY2026, resulting in savings of about $350,000.

What is IHT's investment in UniGen Power Inc.?

IHT holds stock, convertible bonds, and warrants in UniGen Power Inc., which could result in a 15-20% ownership stake if fully exercised. UniGen is developing patented clean energy generation technology.

How long has IHT maintained its dividend payments?

IHT has maintained uninterrupted, continuous annual dividends for 55 years since 1971 when it was first listed on the NYSE.

What were the key performance metrics for IHT's hotels in FY2025?

IHT's hotels showed improved performance with Average Daily Rate (ADR) increasing by 2.28% and Revenue Per Available Room (REVPAR) rising by 0.49% compared to the previous fiscal year.