Press Release: InnSuites Hospitality Trust
September 21, 2000
PHOENIX, AZ -- InnSuites Hospitality Trust (Amex: IHT) Highlights:
InnSuites Hospitality Trust today reported higher Funds From Operations (FFO) of $599,000 for the first six
months of fiscal 2001 compared to $557,000 for the same period of the prior year. When comparing FFO for the first
six months of fiscal 2001 and 2000, the Trust recorded charges for a provision for uncollectible rent from the
Lessee of $920,000 before minority interest in the first six months of fiscal 2001. A one-time charge of $575,000
before minority interest was recorded for a withdrawn public offering in the second quarter of fiscal 2000. Before
these charges, the Trust's FFO would be $1,014,000 and $767,000 for the six months ended July 31, 2000 and 1999,
respectively, an improvement of $247,000 or $0.10 per basic share.
The Trust had a loss before minority interest of $786,000 for the three months ended July 31, 2000, a $122,000
increase from the loss of $664,000 in the prior year. After deducting the loss allocated to the minority interest
of $383,000, the Trust had a net loss for the three months ended July 31, 2000 allocated to shares of beneficial
interest of $404,000. This represented an increase in net loss of $108,000 allocated to shares of beneficial interest
when comparing the three months ended July 31, 2000 and 1999.
For the six months ended July 31, 2000 and 1999, the Trust had income before minority interest of approximately
$200,000 and $330,000, respectively. After deducting the income allocated to the minority interest of $211,000
for the six months ended July 31, 2000, the Trust had a net loss allocated to shares of beneficial interest of
$11,000. This represented a decrease in income of approximately $102,000 allocated to shares of beneficial interest
comparing the six months ended July 31, 2000 and 1999.
Monetary values presented are approximate, in that they have been rounded.
Positioned for Growth
InnSuites Hospitality Trust announced on September 6, 2000 that its Operating Partnership had purchased the Albuquerque
Best Western Airport Inn through its wholly owned subsidiary, Albuquerque Suite Hospitality, LLC. The purchase
of the 122 suite hotel increases the number of suites available through the Trust to 1787 and is also its first
hotel in the New Mexico market. W.A. ``Bill'' Kidwell, President of InnSuites Hotels, Inc. (exclusive Lessee of
the hotels), is excited about this acquisition. He commented, ``Albuquerque fits our portfolio perfectly.''
The Trust, during the second quarter, acquired an option to purchase the 166 suite InnSuites Hotels Fort Worth/Dallas.
James Wirth, President and CEO of the Trust, said, ``The option to purchase a hotel in a stabilized market like
Fort Worth gives the Trust the opportunity for future growth and expansion into the Texas market.''
InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality real estate hotel investment
trust with 11 moderate service and full service hotels containing 1,787 hotel suites located in Arizona, New Mexico
and in Southern California. InnSuites Hospitality Trust, through a strategic alliance, works closely with InnSuites
Hotels, Inc. exclusive lessee of the hotels, InnSuites Innternational Hotels, manager of the hotels, and InnSuites
Licensing Corporation, owner of the InnSuites trademark (allowing InnSuites to enter other markets with this trademark,
which is not available to other hotel companies that do not have control of the InnSuites brand name). InnSuites
Hotels distinguishes itself by offering a choice of Studio, two-room Executive/Family, and Presidential Suites
under its program, ``Your Suite Choice.'' InnSuites Hotels create extra value for its guests with complimentary
``InnSuites Extras''(SM), including healthy, fruit and cereal breakfast buffet, afternoon social hour, Wednesday
evening BBQ, HBO movies, local phone calls and long distance access, microwave popcorn, juice and bottled water,
coffee and tea, morning newspaper, and more. For reservations, call 1-888-INNSUITES, or visit www.innsuites.com.
For investor information, visit www.innsuitestrust.com.
Certain matters within this press release are 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, and (iii) expectations of reductions in costs incurred by the Trust. 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. Such statements include, but are not limited to: a) the ability of the Trust to increase its FFO, b) its
success in making acquisitions, c) its ability to increase REVPAR, d) its success in realizing decreases in operating
and other expenses, and e) the Trust's success in raising additional equity capital. From time to time, these and
other 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