IHT Q1 HOTEL REVENUES EXCEED $2.2 MILLION; IBC MANAGEMENT OBTAINED

Rhea-AI Summary

InnSuites Hospitality Trust (NYSE American: IHT) reported strong Q1 FY2026 performance with hotel revenues exceeding $2.2 million and consolidated net income of $39,030. The first four fiscal months of 2026 showed remarkable hotel revenue of $2,838,347, with May alone generating $632,584. The company has diversified through investments in UniGen Power, a clean energy company, where IHT could potentially hold 15-20% ownership stake. Additionally, IHT's management subsidiary RRF LLLP has obtained management rights for IBC Hotels LLC, with a five-year purchase option. The company maintains its 55-year dividend streak, with the next payment anticipated for August 4, 2025. Management expresses optimism about IHT's future, citing undervalued real estate holdings and potential growth in clean energy and IBC diversification ventures.

Positive

• Q1 FY2026 hotel revenues exceeded $2.2 million with positive net income of $39,030
• Strong May 2025 revenue of $632,584, contributing to $2.838 million in first four fiscal months
• Potential 15-20% ownership stake in clean energy company UniGen Power through convertible bonds and warrants
• Management subsidiary obtained 5-year option to purchase IBC Hotels LLC at cost
• Maintained 55-year continuous dividend payment streak since 1971
• Three of the last four fiscal years were profitable despite depreciation expenses

Negative

• Travel industry showing signs of flattening
• UniGen investment characterized as high-risk
• Previous IBC Hotels venture faced challenges during COVID-19, leading to operational pause

Insights

Financial Analyst

IHT shows stable hotel operations with promising diversification efforts in clean energy and hotel services amid industry challenges.

IHT's Q1 FY2026 results demonstrate resilience in a challenging travel market, with $2.2 million in quarterly revenue and positive net income of $39,030 despite depreciation expenses. The first four months of FY2026 already show $2.84 million in hotel revenue, suggesting a strong trajectory while the broader travel industry flattens.

What's particularly noteworthy is IHT's strategic diversification. Their investment in UniGen Power positions them in the rapidly expanding clean energy sector, where electricity demand is projected to double over the next five years driven by data centers, electric vehicles, and AI. Through convertible bonds and warrants, IHT could potentially secure a 15-20% ownership stake in this high-risk but high-reward venture.

The company has also expanded its management footprint through RRF LLLP (76% owned by IHT), which now manages InnDependent Boutique Collection (IBC Hotels). This strategic move includes a five-year option to purchase IBC Hotels at cost, potentially capturing value from the underserved independent hotel market that represents half of global hotels.

IHT's financial stability is further evidenced by three profitable years out of the last four, even after accounting for non-cash depreciation. The uninterrupted 55-year dividend history since NYSE listing in 1971 demonstrates remarkable consistency, with semi-annual dividends paid in February 2025 and anticipated for August 2025.

Management suggests their properties are carried on the books below market value, potentially representing hidden value that isn't reflected in current financials—a significant consideration for value investors assessing the company's true asset position.

Phoenix, AZ, June 20, 2025 (GLOBE NEWSWIRE) -- InnSuites Hospitality Trust (NYSE American: IHT) reported Hotel Revenue results surpassing $2 million once again in the First Fiscal Quarter of 2026, (February 1, 2025, to April 30, 2025), with Total Revenue of approximately $2.2 million.

Consolidated Net Income before non-cash depreciation expense was $221,330 for the 2026 First Fiscal Quarter ended April 30, 2025 (February 1, 2025, through April 30, 2025). Total Consolidated Fiscal First Quarter Net Income remained positive, at $39,030.

IHT hotel operations were strong in the 2025 Fiscal Year ended January 31, 2025, and are contributing to a solid start in the current 2026 Fiscal Year. Combined Hotel May Revenue for both hotels was a notable $632,584, which has led to another remarkable Hotel Revenue amount of $2,838,347 for the first four Fiscal Months of Fiscal Year 2026. These are positive signs for InnSuites, as progress continues strong, while the Travel Industry in general, flattens.

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

UniGen is currently concentrating on its next round of capital raising, in which IHT may participate. UniGen is a high-risk, clean, efficient, diversification investment, offering high potential investment return if and when successful.

RRF LLLP, the Management Company for IHT, has recently become the Management Company for InnDependent Boutique Collection (IBC Hotels, LLC). This is another new diversification opportunity IHT may participate in further, in the future.

In the process of ownership and management of branded and unbranded hotels, IHT recognized an unfulfilled need to provide hotel reservations, branding, and hotel services for global independent hotels, which at the time and still represent half the hotels in the world. In February 2014, IHT founded IBC Hotels, LLC to explore this unfulfilled opportunity, developing reservations, branding, and related hotel services doing business as “InnDependent Boutique Collection “(IBC Hotels). Initial success in providing reservations for an IHT operated independent hotel was substantial. As this independent hotel services opportunity and the size of this potential demand was increasingly recognized in the travel industry, IBC Hotels was sold in August 2018 to a foreign hotel company planning expansion of independent hotel reservations and services internationally.

The new owner added additional hotels to the reservation system, further developed, updated, and improved then-existing software, and pursued an agreement with a large international internet hotel guest source. When Covid hit in early 2020 and travel virtually briefly, but almost completely came to a standstill in March 2020, the new owner was not in a position to continue operations pausing IBC Hotels reservation services.

On March 5, 2025, REF , an investment entity owned by the chairman and family of IHT majority IHT shareholder, purchased IBC Hotels, LLC, and hired RRF LLLP, the management company subsidiary of InnSuites Hospitality Trust (IHT), to manage the rebirth of IBC, to benefit from the substantial unfulfilled need worldwide for independent hotel and resort reservations, Boutique branding, and related hotel services. In the process, RRF LLLP, a 76% owned subsidiary of IHT and manager of IHT hotels, was engaged as manager of IBC obtaining a five-year option to purchase, at cost, IBC Hotels, LLC. This option is believed to provide IHT a valuable opportunity, if successful, to profit from the revitalization of InnDependent Boutique Collection (IBC Hotels).

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 high clean energy and IBC diversification profit potential ahead, the IHT future looks bright.

IHT’s strong hotel operating results are reflected in three of the four most recent Fiscal Years profitable, even after accounting for substantial non-cash depreciation expense.

Fiscal Year 2026 extended IHT’s uninterrupted, continuous annual dividends to 55 years, since initial NYSE listing in 1971. Semi-annual dividends were paid February 5, 2025, and are anticipated for August 4, 2025.

The IHT Annual Shareholder Meeting has been announced, and will be held at the IHT Phoenix Corporate Office, on August 14, 2025, at 1 PM.

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, IBC, 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 Q1 2026 financial results?

IHT reported Q1 FY2026 total revenue of $2.2 million with consolidated net income of $39,030 before non-cash depreciation expense of $221,330.

What is IHT's investment in UniGen Power?

IHT holds convertible bonds and warrants that could result in a 15-20% ownership stake in UniGen, a company developing patented clean energy generation technology.

What is the status of IHT's dividend payments?

IHT has maintained uninterrupted annual dividends for 55 years since 1971, with the next semi-annual dividend payment anticipated for August 4, 2025.

What is IHT's involvement with IBC Hotels LLC?

IHT's management subsidiary RRF LLLP has obtained management rights for IBC Hotels LLC and secured a five-year option to purchase the company at cost.

How is IHT's hotel performance in 2025?

IHT's hotels showed strong performance with May 2025 revenue of $632,584 and total revenue of $2,838,347 for the first four months of fiscal year 2026.