InnSuites Hospitality Trust Announces Annual Dividend; 32-Year Uninterrupted History of Dividends Continues

Press Release: InnSuites Hospitality Trust
January 15, 2002
PHOENIX, AZ -- InnSuites Hospitality Trust (Amex: IHT) yesterday announced that its Board of Trustees has approved the payment of an annual dividend of $0.01 per share to shareholders of record on January 14, 2002, payable on January 31, 2002. This dividend continues InnSuites' uninterrupted 32-year history of paying dividends each year on its shares of beneficial interest.

InnSuites' dividend policy represents a balance between the Company's commitment to continue its 32 years of dividend payments and its desire to utilize its $16.8 million tax loss carry-forward to pursue the attractive internal growth opportunities available to the Trust, including equity repurchases, asset upgrades, and expansion. With an estimated net asset value of $3.62 per share based on market valuations, the Board of Trustees has identified InnSuites Hospitality Trust's stock as one of these investment opportunities. Purchases of over 1.2 million Trust shares and units of its operating partnership, which units are convertible into Trust shares, during fiscal years 2002, 2001 and 2000 support this commitment. By re-investing a portion of its capital, the Trust is better able to maximize long-term shareholder returns, including the ability to pay higher dividends in the future.

Positioned for the Future

The Trust recently refinanced its Tucson I-10 property on favorable terms. This refinancing takes advantage of the favorable interest rates that are currently available. The Trust is also exploring additional refinancing opportunities for several of its other properties.

Excluding the effects of the events of September 11, 2001, we believe that the Trust and its wholly-owned subsidiary, InnSuites Hotels, Inc., would have experienced improved profits in the last two quarters of fiscal 2002 over the same periods of the prior year. During that time, the Trust successfully implemented cost controls and improved operating efficiency. We expect this upward trend, primarily resulting from improved cost controls, to continue with additional revenue and profits generated from an enhanced marketing plan for fiscal 2003, which is expected to increase sales.

Your Suite Choice® - Value Concept

InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality real estate investment trust with 11 moderate service and full service hotels containing 1,698 hotel suites located in Arizona, New Mexico and Southern California. InnSuites Hotels distinguishes itself by offering a choice of Studio InnSuites, two-room Executive/Family Suites, and Presidential Jacuzzi Suites under its program, ``Your Suite Choice Value''. InnSuites Hotels create extra value for its guests with complimentary ``InnSuites Extras''(SM), including healthy fruit and cereal breakfast buffet, afternoon social hour, HBO, local phone calls, refrigerator with bottled water, microwave, coffeemaker with coffee and tea, morning newspaper, and more. For reservations, call toll free, 1-888-INNSUITES, or visit www.innsuites.com . For investor information, visit www.innsuitestrust.com .

Certain matters within this press release may be discussed using forward-looking language as specified in the 1995 Private Securities Litigation Reform Law and InnSuites Hospitality Trust intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to: (i) expectations of growth in the financial and operating results of the company, (ii) expectations of growth opportunities through acquisitions, (iii) expectations of reductions in costs incurred by the Trust, (iv) expectations to refinance individual hotels, and (v) expectations that the travel and hospitality industries will rebound in the near future from the negative events of September 11, 2001. InnSuites Hospitality Trust cautions that these statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements contained herein. From time to time, these risks are discussed in the Trust's annual report on Form 10-K and other filings with the Securities and Exchange Commission.

SOURCE: InnSuites Hospitality Trust