IHT Q2 HOTEL RECORD REVENUES CONTINUE

Rhea-AI Summary

InnSuites Hospitality Trust (NYSE American: IHT) reported record hotel revenues for the First Half of Fiscal 2025 (Feb 1 - Jul 31, 2024), with Total Revenue reaching approximately $4.1 million. The company achieved a Consolidated Net Income of $14,693 before non-cash depreciation expense. Key performance indicators showed positive trends:

- Combined Average Daily Rate (ADR) increased by 4.03%
- Revenue Per Available Room (REVPAR) rose by 3.16%
- Trailing 12-month revenue grew by 6%

IHT also holds a diversification investment in UniGen Power Inc. (UPI), which is developing a patented clean energy generation innovation. The company has maintained its 54-year streak of uninterrupted annual dividends, with semi-annual payments made in February and July 2024.

Positive

• Record total revenue of approximately $4.1 million for First Half of Fiscal 2025
• Consolidated Net Income of $14,693 before non-cash depreciation expense
• Combined Average Daily Rate (ADR) increased by 4.03%
• Revenue Per Available Room (REVPAR) rose by 3.16%
• Trailing 12-month revenue grew by 6%
• Potential for up to 20% ownership stake in UniGen Power Inc. through stock, convertible bonds, and warrants
• Maintained 54-year streak of uninterrupted annual dividends

Negative

• UniGen Power Inc. investment described as high risk
• Potential shareholder dilution if IHT participates in UniGen's next capital raising round

Insights

Financial Analyst

IHT's Q2 results show positive momentum in the hospitality sector. The $4.1 million record revenue for the first half of fiscal 2025 is encouraging. However, the $14,693 consolidated net income before depreciation is relatively modest. The 4.03% increase in ADR and 3.16% rise in REVPAR indicate improved pricing power and operational efficiency. The 6% growth in trailing 12-month revenue suggests sustained performance. While these metrics are promising, investors should note that the absolute profit figures are still relatively small for a publicly traded company. The diversification into UniGen Power Inc. adds a high-risk, high-reward element to IHT's profile, potentially offsetting the stable but modest returns from its core hospitality business.

Real Estate Expert

IHT's statement about their real estate being valued on the books significantly below current market value is intriguing. This could indicate hidden value for investors, as unrealized gains in property values aren't reflected in current financials. However, without specific figures or recent appraisals, it's difficult to quantify this potential. The continuous 54-year dividend history is impressive for a REIT, suggesting stable cash flows. The hospitality real estate market's recovery post-pandemic is evident in IHT's performance, but investors should be cautious about future market cycles and their impact on property values and hotel revenues.

Energy Sector Analyst

IHT's investment in UniGen Power Inc. is a bold diversification move into the clean energy sector. The projected doubling of electricity demand over the next five years, driven by data centers, electric vehicles and AI, presents a significant market opportunity. However, the lack of specific details about UniGen's technology or progress makes it challenging to assess the true potential of this investment. The potential 20% ownership stake could be valuable if UniGen succeeds, but it's important to remember that many clean energy startups fail despite promising technology. Investors should view this as a speculative element in IHT's portfolio, with the core hospitality business still driving near-term results.

Phoenix, AZ, Sept. 16, 2024 (GLOBE NEWSWIRE) -- InnSuites Hospitality Trust (NYSE American: IHT) reported a continuation of Hotel Revenue record levels in the First Half of Fiscal 2025, (February 1, 2024, to July 31, 2024), with Total Revenue increasing to an approximately $4.1 million record level.

Consolidated Net Income before non-cash depreciation expense was $14,693 for the 2025 Fiscal First Half ended July 31, 2024 (February 1, 2024, through July 31, 2024).

IHT hotel operations were strong in the Fiscal Year ended January 31, 2024, and the 2025 Fiscal First Half, continuing into August, of the current Fiscal Year. Combined Revenue has led to a record $4,660,134 for the first seven Fiscal Months of Fiscal Year 2025.

The Combined Average Daily Rate (ADR) has increased 4.03% for Fiscal First Half (February 1, 2024, to July 31, 2024). The Combined Revenue Per Available Room (REVPAR), has also increased from the prior Fiscal First Half, by 3.16%. The Trailing 12 month revenue has also seen a 6% increase from the prior 12 month period.

These are all positive signs for InnSuites, as the Travel Industry, and InnSuites Hospitality Trust (IHT) specifically, record strong revenue.

InnSuites Hospitality Trust (IHT), in late 2019, made a diversification investment in UniGen Power Inc., (UPI), developing a patented, high profit potential, efficient clean energy generation innovation. With the continued growing demand for data centers plus influx of electric cars, as well as growing needs of artificial intelligence, increased demand for electricity over the next five years is projected to approximately double. IHT holds stock, convertible bonds and warrants that, if and when fully exercised, could result in IHT holding an approximately up to 20% ownership stake in UniGen.

UniGen is currently concentrating on its next round of capital raising, which IHT may or may not participate in. 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 clean energy diversification high profit potential ahead, the IHT future looks bright.

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 July 31, 2024. The IHT Annual Shareholder Meeting was held at the IHT Corporate Office, on August 14, 2025.

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, as well as statements related to continuation of its 54 years of uninterrupted payment of annual dividends, 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, continuation of growth of hospitality revenues and/or profit growth, timely collection of receivables, the success of and timing of the UniGen clean energy diversification innovation, the continuation of semi-annual dividends in the year(s) ahead, 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 was IHT's total revenue for the First Half of Fiscal 2025?

InnSuites Hospitality Trust (IHT) reported a record total revenue of approximately $4.1 million for the First Half of Fiscal 2025, covering the period from February 1, 2024, to July 31, 2024.

How much did IHT's Combined Average Daily Rate (ADR) increase in the First Half of Fiscal 2025?

IHT's Combined Average Daily Rate (ADR) increased by 4.03% for the Fiscal First Half of 2025, which ran from February 1, 2024, to July 31, 2024.

What is IHT's investment in UniGen Power Inc. (UPI)?

IHT holds stock, convertible bonds, and warrants in UniGen Power Inc. (UPI), which could result in up to a 20% ownership stake if fully exercised. UPI is developing a patented clean energy generation innovation.

How long has IHT maintained its streak of uninterrupted annual dividends?

IHT has maintained its uninterrupted, continuous annual dividend payments for 54 years, since 1971. In Fiscal Year 2025, semi-annual dividends were paid on February 5, 2024, and July 31, 2024.