IHT HOTEL REVENUE CONTINUES TO GROW

Rhea-AI Summary

InnSuites Hospitality Trust (IHT) reported strong annual results in FY 2024, with Total Revenues increasing to $7.5 million, Net Income of $203,880, and Consolidated Net Income of $956,333. The hotel operations showed record results, with combined revenue surpassing $1.5 million for the first two months of FY 2025. IHT made a diversification investment in UniGen Power, Inc., aiming for a 20% ownership stake. The company continues its stock buyback program and extended its annual dividends streak to 54 years.

Insights

Financial Analyst

InnSuites Hospitality Trust's (IHT) reported increase in total revenues to $7.5 million represents a modest growth when compared to the previous fiscal year's $7.1 million. The growth trajectory, while positive, must be assessed in the context of the broader hospitality industry's recovery post-pandemic. The reported earnings per share (EPS) of $0.02 is a key metric for investors as it indicates profitability on a per-share basis, though the figure is relatively small and suggests that the company's earnings are not robust when distributed among its shares outstanding.

The hospitality sector is capital intensive and the mention of consolidated net income before non-cash depreciation expense of $956,333 is significant. Depreciation is a substantial non-cash charge that affects the profitability of such companies. Investors should note that while this figure provides insight into the company's cash-generating ability, it does not reflect the ongoing capital expenditures required to maintain or improve property conditions.

Additionally, IHT's investment in UniGen Power, Inc. introduces diversification into clean energy, which is a forward-looking strategy given the projected demand for electricity. However, the associated risks with this high-potential but unproven investment must be weighed alongside IHT's core business operations in hospitality. The convertible bonds and warrants in UniGen could potentially increase IHT's assets significantly if exercised, but the success of this investment is speculative and should be monitored closely.

Market Research Analyst

From a market perspective, IHT's operation in the hospitality industry and its diversification into clean energy through UniGen Power, Inc. represent a strategic blend of traditional and innovative investments. The record results for the Tucson and Albuquerque hotels are indicative of strong regional performance, which may be driven by factors such as local tourism trends, economic conditions and effective property management.

Understanding the market dynamics of the hospitality industry, including travel patterns and consumer preferences, is essential to evaluating IHT's future performance. The company's decision to continue its stock buyback program could be seen as a signal of confidence in its valuation and future prospects, often leading to a positive market reaction. However, the impact on the stock price will depend on the market's perception of the company's long-term growth potential and the success of its diversification efforts.

The extension of IHT's annual dividend streak to 54 years reflects a commitment to shareholder returns, which can be attractive to income-focused investors. The semi-annual dividend payments also provide a tangible return, reinforcing the company's financial stability. Nonetheless, the sustainability of these dividends hinges on the continuous profitability and cash flow generation of the company.

Energy Sector Analyst

The investment in UniGen Power, Inc. by IHT is a noteworthy move into the clean energy sector, which is experiencing rapid growth due to the global shift towards sustainable energy sources. The increased demand for electricity in the next five years, particularly with the rise of electric vehicles, positions UniGen's innovation in a potentially lucrative market.

However, the energy sector is known for its high entry barriers and significant research and development costs. UniGen's current focus on capital raising is a critical step, but it also underscores the early-stage nature of the company and the inherent risks involved. Investors should consider the long development cycles and regulatory hurdles associated with bringing new energy technologies to market.

The potential for IHT to hold a 20% ownership stake in UniGen could be transformative if the technology succeeds, but the timeline for realizing returns on this investment is uncertain. It is also important to recognize the competitive landscape of the clean energy sector and the challenges new entrants face in scaling up and commercializing their technologies.

Phoenix, AZ, April 08, 2024 (GLOBE NEWSWIRE) -- InnSuites Hospitality Trust (NYSE American: IHT) reported continued strong annual results in Fiscal Year 2024, (February 1, 2023, to January 31, 2024), with Total Revenues increasing to approximately $7.5 million, which is an increase of from the same prior Fiscal Year total of $7.1 million.

Annual Net Income Attributable to Controlling Interests was $203,880.

Earnings Per Share based on this Net Income Attributable to Controlling Interest amount was $0.02.

Consolidated Net Income before non-cash depreciation expense was $956,333 for the Fiscal Year ended January 31, 2024.

IHT hotel operations were strong in the Fiscal Year ended January 31, 2024, and are contributing to a solid start in the current 2025 Fiscal First Quarter, with both the Tucson Hotel and Albuquerque Hotel achieving record results for the combined months of February and March, of the current Fiscal Year. Combined Revenue for both hotels surpassed $1.5 million for the first two months of Fiscal 2025.

These are all positive signs for InnSuites, as progress continues while the Travel Industry, and InnSuites Hospitality Trust (IHT) specifically, continue to grow and thrive.

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 influx and popularity of electric cars, increased demand for electricity over the next five years is projected to approximately double. IHT holds convertible bonds and warrants that, when fully exercised, could result in IHT holding an approximate 20% or more ownership stake in UniGen.

UniGen is currently concentrating on its next round of capital raising.

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 high clean energy diversification profit potential ahead, the IHT future looks bright. Accordingly, IHT continues its stock buyback program.

IHT’s strong hotel operating results are reflected in three successful, consecutive profitable Fiscal Years, even after accounting for substantial non-cash depreciation expense.

Fiscal Year 2025 extended IHT’s uninterrupted, continuous annual dividends to 54 years, since 1971, with semi-annual dividends paid February 5, 2024, and anticipated for July 31, 2024.

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 the uncertain outcome, impact, effects and results of IHT’s success in finding potential qualified purchasers for its hospitality real estate, or a reverse merger partner, the success of additional financing and timing of the UniGen clean energy diversification innovation, 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 InnSuites Hospitality Trust's Total Revenues in FY 2024?

InnSuites Hospitality Trust's Total Revenues in FY 2024 increased to approximately $7.5 million.

What was the Net Income Attributable to Controlling Interests in FY 2024?

The Net Income Attributable to Controlling Interests in FY 2024 was $203,880.

What was the Consolidated Net Income before non-cash depreciation expense for the Fiscal Year ended January 31, 2024?

The Consolidated Net Income before non-cash depreciation expense for the Fiscal Year ended January 31, 2024, was $956,333.

What were the combined revenues for the Tucson Hotel and Albuquerque Hotel for the first two months of FY 2025?

The combined revenues for both the Tucson Hotel and Albuquerque Hotel surpassed $1.5 million for the first two months of FY 2025.

What was the diversification investment made by IHT in late 2019?

In late 2019, IHT made a diversification investment in UniGen Power, Inc., a company developing a patented clean energy generation innovation.

How long has IHT been paying annual dividends?

IHT has been paying annual dividends for 54 years, since 1971.