InnSuites Hospitality Trust (IHT, Financial) filed Quarterly Report for the period ended 2010-10-31.
Innsuites Hospitality Trust has a market cap of $13.3 million; its shares were traded at around $1.55 with and P/S ratio of 0.8. The dividend yield of Innsuites Hospitality Trust stocks is 0.7%.
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 October 31, 2010, $66,898 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, 2010, the Hotels spent $714,335 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 $884,216 and $891,619 during the nine-month periods ended October 31, 2010 and 2009, respectively, on repairs and maintenance. The Hotels spent $259,166 and $296,297 during the three-month periods ended October 31, 2010 and 2009, respectively, on repairs and maintenance. These amounts have been charged to expense as incurred.
For the nine months ended October 31, 2010, our total revenue was $11.8 million, a decrease of $1.3 million, or 10.2%, compared with the prior year period total of $13.1 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 10.1% to $9.7 million for the nine months ended October 31, 2010, from $10.8 million for the nine months ended October 31, 2009. Hotel operations, including Food and Beverage operations, experienced decreases in revenues during the first nine 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 $13.6 million for the nine months ended October 31, 2010, a decrease of $631,000, or 4.4%, from the prior year period total of $14.2 million. Total operating expenses were $12.4 million for the nine months ended October 31, 2010, a decrease of $653,000, or 5.0%, from the prior year period total of $13.1 million. The majority of the hotel operating expenses decreased due to lower occupancy.
For the three months ended October 31, 2010, our total revenue was $3.3 million, a decrease of $283,000, or 7.8%, compared with the prior year period total of $3.6 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 2.4% to $2.8 million for the three months ended October 31, 2010, from $2.9 million for the three months ended October 31, 2009. Hotel operations, including Food and Beverage operations, experienced decreases in revenues during the third quarter of fiscal year 2011, although to a lesser extent then in the previous two quarters, 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 $4.2 million for the three months ended October 31, 2010, a decrease of $192,000, or 4.3%, from the prior year period total of $4.4 million. Total operating expenses were $3.8 million for the three months ended October 31, 2010, a decrease of $181,000, or 4.5%, from the prior year period total of $4.0 million. The majority of the hotel operating expenses decreased due to lower occupancy.
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Innsuites Hospitality Trust has a market cap of $13.3 million; its shares were traded at around $1.55 with and P/S ratio of 0.8. The dividend yield of Innsuites Hospitality Trust stocks is 0.7%.
Highlight of Business Operations:
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 October 31, 2010, $66,898 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, 2010, the Hotels spent $714,335 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 $884,216 and $891,619 during the nine-month periods ended October 31, 2010 and 2009, respectively, on repairs and maintenance. The Hotels spent $259,166 and $296,297 during the three-month periods ended October 31, 2010 and 2009, respectively, on repairs and maintenance. These amounts have been charged to expense as incurred.
For the nine months ended October 31, 2010, our total revenue was $11.8 million, a decrease of $1.3 million, or 10.2%, compared with the prior year period total of $13.1 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 10.1% to $9.7 million for the nine months ended October 31, 2010, from $10.8 million for the nine months ended October 31, 2009. Hotel operations, including Food and Beverage operations, experienced decreases in revenues during the first nine 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 $13.6 million for the nine months ended October 31, 2010, a decrease of $631,000, or 4.4%, from the prior year period total of $14.2 million. Total operating expenses were $12.4 million for the nine months ended October 31, 2010, a decrease of $653,000, or 5.0%, from the prior year period total of $13.1 million. The majority of the hotel operating expenses decreased due to lower occupancy.
For the three months ended October 31, 2010, our total revenue was $3.3 million, a decrease of $283,000, or 7.8%, compared with the prior year period total of $3.6 million. Revenues from hotel operations, which include Room, Food and Beverage, Telecommunications and Other revenues, decreased 2.4% to $2.8 million for the three months ended October 31, 2010, from $2.9 million for the three months ended October 31, 2009. Hotel operations, including Food and Beverage operations, experienced decreases in revenues during the third quarter of fiscal year 2011, although to a lesser extent then in the previous two quarters, 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 $4.2 million for the three months ended October 31, 2010, a decrease of $192,000, or 4.3%, from the prior year period total of $4.4 million. Total operating expenses were $3.8 million for the three months ended October 31, 2010, a decrease of $181,000, or 4.5%, from the prior year period total of $4.0 million. The majority of the hotel operating expenses decreased due to lower occupancy.
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