InnSuites Hospitality Trust (IHT, Financial) filed Quarterly Report for the period ended 2010-07-31.
Innsuites Hospitality Trust has a market cap of $10 million; its shares were traded at around $1.16 with and P/S ratio of 0.6. The dividend yield of Innsuites Hospitality Trust stocks is 0.8%.
Total expenses were $9.4 million for the six months ended July 31, 2010, a decrease of $439,000, or 4.5%, from the prior year period total of $9.8 million. Total operating expenses were $8.6 million for the six months ended July 31, 2010, a decrease of $472,000, or 5.2%, from the prior year period total of $9.1 million. The majority of the hotel operating expenses decreased due to lower occupancy.
Total interest expense was $792,000 for the six months ended July 31, 2010, an increase of $33,000, or 4.4%, from the prior year period total of $759,000. Interest on mortgage notes payable increased $18,000, or 2.4%, to $771,000 for the six months ended July 31, 2010, due primarily to higher loan balances due to the refinancing of the Albuquerque and Yuma property mortgages. Interest on other notes payable increased $16,000, or over 100.0%, to $21,000 for the six months ended July 31, 2010, due primarily to notes payable entered into during the last half of fiscal year 2010 to repurchase shares of beneficial interest.
Total expenses were $4.5 million for the three months ended July 31, 2010, a decrease of $350,000, or 7.1%, from the prior year period total of $4.9 million. Total operating expenses were $4.1 million for the three months ended July 31, 2010, a decrease of $376,000, or 8.3%, from the prior year period total of $4.5 million. The majority of the hotel operating expenses decreased due to lower occupancy.
During the first quarter of fiscal year 2011, we increased our mortgage note payable secured by the Yuma, Arizona property. The new balance of the mortgage note payable is $5.0 million. The additional $1.0 million borrowed bears interest at 8.0% and matures on December 31, 2013. The note is due in monthly interest-only installments of $30,000, an increase of $6,667 from the previous monthly interest-only installments of $23,333. We used the $1.0 million to build operating reserves and reduce payables.
We continue to contribute to a Capital Expenditures Fund (the “Fund”) an amount equal to 4% of the Hotels room revenues. The Fund is restricted by the mortgage lender for four of our properties. As of July 31, 2010, $82,536 was held in restricted capital expenditure funds and is included on our Balance Sheet as “Restricted Cash.” The Fund is intended to be used for capital improvements to the Hotels and for refurbishment and replacement of furniture, fixtures and equipment, in addition to other uses of amounts in the Fund considered appropriate from time to time. During the six months ended July 31, 2010, the Hotels spent $427,234 for capital expenditures. We consider the majority of these improvements to be revenue producing. Therefore, these amounts have been capitalized and are being depreciated over their estimated useful lives. The Hotels also spent $625,050 and $595,322 during the six-month periods ended July 31, 2010 and 2009, respectively, on repairs and maintenance. The Hotels spent $298,036 and $307,132 during the three-month periods ended July 31, 2010 and 2009, respectively, on repairs and maintenance. These amounts have been charged to expense as incurred.
Read the The complete Report
Innsuites Hospitality Trust has a market cap of $10 million; its shares were traded at around $1.16 with and P/S ratio of 0.6. The dividend yield of Innsuites Hospitality Trust stocks is 0.8%.
Highlight of Business Operations:
For the six months ended July 31, 2010, our total revenue was $8.4 million, a decrease of $1.0 million, or 11.1%, compared with the prior year period total of $9.5 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 12.9% to $6.9 million for the six months ended July 31, 2010, from $7.9 million for the six months ended July 31, 2009. Hotel operations, including Food and Beverage operations, experienced decreases in revenues during the first six months of fiscal year 2011 due to lower occupancy and increased rate pressure, most prominently at our Yuma, Arizona location as a result of increased supply in the area. Expenses may not decline proportionately with a decline in revenues due to a high degree of operational and financial leverage in the hotel industry.Total expenses were $9.4 million for the six months ended July 31, 2010, a decrease of $439,000, or 4.5%, from the prior year period total of $9.8 million. Total operating expenses were $8.6 million for the six months ended July 31, 2010, a decrease of $472,000, or 5.2%, from the prior year period total of $9.1 million. The majority of the hotel operating expenses decreased due to lower occupancy.
Total interest expense was $792,000 for the six months ended July 31, 2010, an increase of $33,000, or 4.4%, from the prior year period total of $759,000. Interest on mortgage notes payable increased $18,000, or 2.4%, to $771,000 for the six months ended July 31, 2010, due primarily to higher loan balances due to the refinancing of the Albuquerque and Yuma property mortgages. Interest on other notes payable increased $16,000, or over 100.0%, to $21,000 for the six months ended July 31, 2010, due primarily to notes payable entered into during the last half of fiscal year 2010 to repurchase shares of beneficial interest.
Total expenses were $4.5 million for the three months ended July 31, 2010, a decrease of $350,000, or 7.1%, from the prior year period total of $4.9 million. Total operating expenses were $4.1 million for the three months ended July 31, 2010, a decrease of $376,000, or 8.3%, from the prior year period total of $4.5 million. The majority of the hotel operating expenses decreased due to lower occupancy.
During the first quarter of fiscal year 2011, we increased our mortgage note payable secured by the Yuma, Arizona property. The new balance of the mortgage note payable is $5.0 million. The additional $1.0 million borrowed bears interest at 8.0% and matures on December 31, 2013. The note is due in monthly interest-only installments of $30,000, an increase of $6,667 from the previous monthly interest-only installments of $23,333. We used the $1.0 million to build operating reserves and reduce payables.
We continue to contribute to a Capital Expenditures Fund (the “Fund”) an amount equal to 4% of the Hotels room revenues. The Fund is restricted by the mortgage lender for four of our properties. As of July 31, 2010, $82,536 was held in restricted capital expenditure funds and is included on our Balance Sheet as “Restricted Cash.” The Fund is intended to be used for capital improvements to the Hotels and for refurbishment and replacement of furniture, fixtures and equipment, in addition to other uses of amounts in the Fund considered appropriate from time to time. During the six months ended July 31, 2010, the Hotels spent $427,234 for capital expenditures. We consider the majority of these improvements to be revenue producing. Therefore, these amounts have been capitalized and are being depreciated over their estimated useful lives. The Hotels also spent $625,050 and $595,322 during the six-month periods ended July 31, 2010 and 2009, respectively, on repairs and maintenance. The Hotels spent $298,036 and $307,132 during the three-month periods ended July 31, 2010 and 2009, respectively, on repairs and maintenance. These amounts have been charged to expense as incurred.
Read the The complete Report
