InnSuites Hospitality Trust (IHT, Financial) filed Quarterly Report for the period ended 2009-10-31.
InnSuites Hospitality Trust is a hospitality real estate investment trust.The Trust's business plan focuses on ownership of suite hotels, as well as its alliance with InnSuites Hotels. Innsuites Hospitality Trust has a market cap of $10.8 million; its shares were traded at around $1.2 with and P/S ratio of 0.5. The dividend yield of Innsuites Hospitality Trust stocks is 0.8%.
Total expenses of $14.2 million for the nine months ended October 31, 2009 decreased $2.6 million, or 15.6%, from the prior year period total of $16.9 million. Total operating expenses of $13.1 million for the nine months ended October 31, 2009 decreased $2.7 million, or 17.0%, from the prior year period total of $15.8 million. The majority of the hotel operating expenses decreased due to lower occupancy. Hotel property depreciation decreased $952,000 for the current nine-month period compared to the prior year nine-month period due to the reclassification of the hotel properties from “held for sale” to “held and used” during the third quarter of fiscal year 2009, which resulted in additional depreciation expense recognized for prior periods during which depreciation had been suspended.
For the three months ended October 31, 2009, our total revenue was $3.6 million, a decrease of $627,000, or 14.8%, compared with the prior year period of $4.2 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 15.7% to $2.9 million for the three months ended October 31, 2009, from $3.4 million for the three months ended October 31, 2008. Hotel operations, including Food and Beverage operations, experienced a significant decrease in revenues during the third quarter of fiscal year 2010 due to lower occupancy and increased rate pressure. 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 $4.4 million for the three months ended October 31, 2009, a decrease of $2.6 million, or 36.9%, from the prior year period total of $7.0 million. Total operating expenses were $4.0 million for the three months ended October 31, 2009, a decrease of $2.6 million, or 39.6%, from the prior year period total of $6.6 million. The majority of the hotel operating expenses decreased due to lower occupancy. Hotel property depreciation decreased $1.9 million for the current three-month period compared to the prior year three-month period due to the reclassification of the hotel properties from “held for sale” to “held and used” during the third quarter of fiscal year 2009, which resulted in additional depreciation expense recognized for prior periods during which depreciation had been suspended.
During the third quarter of fiscal year 2010, we refinanced our mortgage note payable secured by the Albuquerque, New Mexico property. The new mortgage note payable is $1.5 million, bears interest at 7.75% and matures on November 1, 2021. The note is due in 144 monthly principal and interest installments of $16,032. We used the $1.5 million to fully satisfy our $882,776 mortgage note payable secured by the property and received $617,224 in net cash proceeds from the refinancing.
We continue to contribute to a Capital Expenditures Fund (the “Fund”) an amount equal to 4% of the InnSuites Hotels revenues from operation of the Hotels. The Fund is restricted by the mortgage lender for four of our properties. As of October 31, 2009, $74,648 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 nine months ended October 31, 2009, the Hotels spent $698,969 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 $891,619 and $1,129,404 during the nine-month periods ended October 31, 2009 and October 31, 2008, respectively, on repairs and maintenance and these amounts have been charged to expense as incurred. The Hotels also spent $296,297 and $379,121 during the three-month periods ended October 31, 2009 and July 31, 2008, respectively, on repairs and maintenance and these amounts have been charged to expense as incurred.
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InnSuites Hospitality Trust is a hospitality real estate investment trust.The Trust's business plan focuses on ownership of suite hotels, as well as its alliance with InnSuites Hotels. Innsuites Hospitality Trust has a market cap of $10.8 million; its shares were traded at around $1.2 with and P/S ratio of 0.5. The dividend yield of Innsuites Hospitality Trust stocks is 0.8%.
Highlight of Business Operations:
For the nine months ended October 31, 2009, our total revenue was $13.1 million, a decrease of $2.9 million, or 18.3%, compared with the prior year period of $16.0 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 19.7% to $10.8 million for the nine months ended October 31, 2009, from $13.4 million for the nine months ended October 31, 2008. Hotel operations, including Food and Beverage operations, experienced a significant decrease in revenues during the first nine months of fiscal year 2010 due to lower occupancy and increased rate pressure. Expenses may not decline proportionately with a decline in revenues due to a high degree of operational and financial leverage in our hotel business.Total expenses of $14.2 million for the nine months ended October 31, 2009 decreased $2.6 million, or 15.6%, from the prior year period total of $16.9 million. Total operating expenses of $13.1 million for the nine months ended October 31, 2009 decreased $2.7 million, or 17.0%, from the prior year period total of $15.8 million. The majority of the hotel operating expenses decreased due to lower occupancy. Hotel property depreciation decreased $952,000 for the current nine-month period compared to the prior year nine-month period due to the reclassification of the hotel properties from “held for sale” to “held and used” during the third quarter of fiscal year 2009, which resulted in additional depreciation expense recognized for prior periods during which depreciation had been suspended.
For the three months ended October 31, 2009, our total revenue was $3.6 million, a decrease of $627,000, or 14.8%, compared with the prior year period of $4.2 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 15.7% to $2.9 million for the three months ended October 31, 2009, from $3.4 million for the three months ended October 31, 2008. Hotel operations, including Food and Beverage operations, experienced a significant decrease in revenues during the third quarter of fiscal year 2010 due to lower occupancy and increased rate pressure. 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 $4.4 million for the three months ended October 31, 2009, a decrease of $2.6 million, or 36.9%, from the prior year period total of $7.0 million. Total operating expenses were $4.0 million for the three months ended October 31, 2009, a decrease of $2.6 million, or 39.6%, from the prior year period total of $6.6 million. The majority of the hotel operating expenses decreased due to lower occupancy. Hotel property depreciation decreased $1.9 million for the current three-month period compared to the prior year three-month period due to the reclassification of the hotel properties from “held for sale” to “held and used” during the third quarter of fiscal year 2009, which resulted in additional depreciation expense recognized for prior periods during which depreciation had been suspended.
During the third quarter of fiscal year 2010, we refinanced our mortgage note payable secured by the Albuquerque, New Mexico property. The new mortgage note payable is $1.5 million, bears interest at 7.75% and matures on November 1, 2021. The note is due in 144 monthly principal and interest installments of $16,032. We used the $1.5 million to fully satisfy our $882,776 mortgage note payable secured by the property and received $617,224 in net cash proceeds from the refinancing.
We continue to contribute to a Capital Expenditures Fund (the “Fund”) an amount equal to 4% of the InnSuites Hotels revenues from operation of the Hotels. The Fund is restricted by the mortgage lender for four of our properties. As of October 31, 2009, $74,648 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 nine months ended October 31, 2009, the Hotels spent $698,969 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 $891,619 and $1,129,404 during the nine-month periods ended October 31, 2009 and October 31, 2008, respectively, on repairs and maintenance and these amounts have been charged to expense as incurred. The Hotels also spent $296,297 and $379,121 during the three-month periods ended October 31, 2009 and July 31, 2008, respectively, on repairs and maintenance and these amounts have been charged to expense as incurred.
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