• 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.
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.
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