InnSuites Hospitality Trust Refinances Ontario Hotel Property

Apr 19, 2001, 01:00 ET from InnSuites Hospitality Trust

    PHOENIX, April 19 /PRNewswire/ -- InnSuites Hospitality Trust (Amex:   IHT)
 (the "Trust") recently refinanced the InnSuites Holiday Inn Hotel & Suites
 Ontario Airport for $9 million providing net proceeds of $4.2 million to
 reduce the Trust's outstanding line of credit.  Pacific Century Bank has
 agreed to extend the line of credit as the Trust completes refinancing
 additional hotels to retire the line.  The interest rate on the loan was
 lowered providing benefits going forward.
     In reviewing the cost of distributing small quarterly dividends and the
 Trust's cash flow, the Board of Trustees has determined it would be in the
 best long-term interest of its investors to cut dividend distribution expenses
 and use earnings and cash flow in the near term to facilitate further debt
 reduction, product improvement and/or equity repurchases at discounts up to
 half of estimated net asset value.  In general, REITs are hampered by the need
 to pay out 90% of earnings.  InnSuites, however, has an estimated
 $16.6 million tax loss carry forward, most of which was obtained from its
 prior merger with Realty Refund, which allows the Trust to reinvest earnings
 back into the Trust and still comply with REIT regulations providing favorable
 Trust tax treatment.  The Trust wishes to continue to preserve and build its
 32 year record of dividends, and accordingly, it is anticipated that the Board
 will review dividend policy on or before January 31, 2002.
     Following the effectiveness of the REIT Modernization Act (RMA), InnSuites
 Hospitality Trust acquired 100% of its exclusive lessee, InnSuites Hotels,
 Inc., effective on the first day of the Trust's fiscal year 2002, February 1,
 2001.  Also, effective February 1, 2001, Suite Hospitality Management,
 headquartered in Tucson, AZ assumed management of the eleven hotels owned by
 Trust and the Fort Worth/Dallas property, which the Trust has an option to
 purchase.  The acquisition of InnSuites Hotels, Inc., will allow the financial
 consolidation of this wholly owned subsidiary.  The Trust believes such
 consolidation should have a positive impact on earnings for fiscal year 2002.
 In addition, it is hoped that the benefits of the RMA will, over time,
 simplify the corporate structure and further benefit the earnings and Funds
 From Operations of the Trust.
     The preliminary results in the first fiscal quarter (February 1, 2001
 through April 30, 2001) indicate revenues declined slightly at the Trust's
 Arizona properties, while revenues at the California properties increased.
 The InnSuites Buena Park Hotel, in particular, is benefiting from the opening
 of the new California Adventure theme park adjacent to Disneyland, the
 completion of the adjacent freeway construction, and the first phase of a
 substantial hotel renovation to better position it in a strong area market.
 As part of the Ontario refinance, a $581,000 FF&E reserve has been established
 to refurbish this property to increasingly benefit from the strong Ontario
 Airport market.
     InnSuites Hospitality Trust continues to take steps to benefit from
 jointly marketing its hotels, obtaining greater efficiency from the joint
 operations and continuing to seek further expense reduction at the hotel level
 and at the corporate level including corporate office overhead reduction and
 interest expense reduction.
 
     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
 reductions in costs incurred by the Company; and (iii) ability to complete
 refinancing.  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 Company to increase its FFO; b) its
 ability to increase REVPAR; c) its success in realizing decreases in operating
 and other expenses; and d) the Company's success in raising additional debt
 and/or 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
    PHOENIX, April 19 /PRNewswire/ -- InnSuites Hospitality Trust (Amex:   IHT)
 (the "Trust") recently refinanced the InnSuites Holiday Inn Hotel & Suites
 Ontario Airport for $9 million providing net proceeds of $4.2 million to
 reduce the Trust's outstanding line of credit.  Pacific Century Bank has
 agreed to extend the line of credit as the Trust completes refinancing
 additional hotels to retire the line.  The interest rate on the loan was
 lowered providing benefits going forward.
     In reviewing the cost of distributing small quarterly dividends and the
 Trust's cash flow, the Board of Trustees has determined it would be in the
 best long-term interest of its investors to cut dividend distribution expenses
 and use earnings and cash flow in the near term to facilitate further debt
 reduction, product improvement and/or equity repurchases at discounts up to
 half of estimated net asset value.  In general, REITs are hampered by the need
 to pay out 90% of earnings.  InnSuites, however, has an estimated
 $16.6 million tax loss carry forward, most of which was obtained from its
 prior merger with Realty Refund, which allows the Trust to reinvest earnings
 back into the Trust and still comply with REIT regulations providing favorable
 Trust tax treatment.  The Trust wishes to continue to preserve and build its
 32 year record of dividends, and accordingly, it is anticipated that the Board
 will review dividend policy on or before January 31, 2002.
     Following the effectiveness of the REIT Modernization Act (RMA), InnSuites
 Hospitality Trust acquired 100% of its exclusive lessee, InnSuites Hotels,
 Inc., effective on the first day of the Trust's fiscal year 2002, February 1,
 2001.  Also, effective February 1, 2001, Suite Hospitality Management,
 headquartered in Tucson, AZ assumed management of the eleven hotels owned by
 Trust and the Fort Worth/Dallas property, which the Trust has an option to
 purchase.  The acquisition of InnSuites Hotels, Inc., will allow the financial
 consolidation of this wholly owned subsidiary.  The Trust believes such
 consolidation should have a positive impact on earnings for fiscal year 2002.
 In addition, it is hoped that the benefits of the RMA will, over time,
 simplify the corporate structure and further benefit the earnings and Funds
 From Operations of the Trust.
     The preliminary results in the first fiscal quarter (February 1, 2001
 through April 30, 2001) indicate revenues declined slightly at the Trust's
 Arizona properties, while revenues at the California properties increased.
 The InnSuites Buena Park Hotel, in particular, is benefiting from the opening
 of the new California Adventure theme park adjacent to Disneyland, the
 completion of the adjacent freeway construction, and the first phase of a
 substantial hotel renovation to better position it in a strong area market.
 As part of the Ontario refinance, a $581,000 FF&E reserve has been established
 to refurbish this property to increasingly benefit from the strong Ontario
 Airport market.
     InnSuites Hospitality Trust continues to take steps to benefit from
 jointly marketing its hotels, obtaining greater efficiency from the joint
 operations and continuing to seek further expense reduction at the hotel level
 and at the corporate level including corporate office overhead reduction and
 interest expense reduction.
 
     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
 reductions in costs incurred by the Company; and (iii) ability to complete
 refinancing.  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 Company to increase its FFO; b) its
 ability to increase REVPAR; c) its success in realizing decreases in operating
 and other expenses; and d) the Company's success in raising additional debt
 and/or 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