Company Summary: InnSuites Hospitality Trust

Overview

• Type of Business: Real estate investment trust (REIT), taxed as a C-corporation.
• Headquarters: Phoenix, Arizona.
• Formation Date: June 21, 1971.
• Core Operations:
  • Owns interests in and manages two hotel properties.
  • Operates and provides management services for these hotels.
  • Licenses the “InnSuites” trademark.
  • Engages in diversified investments, including UniGen Power, Inc.

Hotel Properties

• Number of Hotels: 2
• Locations:
  • Tucson, Arizona (InnSuites Hotel & Suites, controlled via a 51.62% interest in the partnership and a 75.89% ownership interest in the general partner)
  • Albuquerque, New Mexico (InnSuites Hotel & Suites, with a direct 21.90% ownership interest)
• Total Suites: Approximately 270 hotel suites.
• Hotel Features:
  • Moderate-service hotels following a value studio and two-room suite philosophy established in 1980.
  • Amenities include swimming pools, fitness centers, business centers, complimentary breakfast.
  • Tucson hotel includes “PJ’s” Pub and Café.
  • Both hotels are affiliated with Best Western International under membership agreements.
• Renovations: 100% suite renovation completed over the past four years to meet Best Western standards.

Management & Operations

• Management:
  • Managed via RRF Limited Liability Limited Partnership (RRF LLLP), majority-owned by the Trust.
  • Management agreements authorize RRF to handle daily operations.
  • Management fees: 5% of room revenue plus $2,000/month per hotel.
  • Management agreements are year-to-year, cancellable with 30 days’ notice.
• Trademark Licensing:
  • InnSuites trademark licensed to hotels, expiring January 2027.
• Employees:
  • Approximately 52 full-time employees.
  • Approximately 27 part-time employees.
• Revenue & Expenses:
  • Membership fees and reservation fees paid to Best Western were approximately $209,000 (2025) and $201,000 (2024).

Financial & Strategic Focus

• Fiscal Year 2026 (February 1, 2025 – January 31, 2026):
  • Focused on increasing hotel operating income.
  • Plans to sell one or both hotels within 36 months.
  • Aiming for increased asset value, long-term shareholder returns, profitable hotel operations, and diversification (including investments like UniGen Power).
  • Seeks additional management agreements for the remainder of Fiscal Year 2026.
• Stock Trading:
  • Single class of Shares of Beneficial Interest, traded on NYSE AMERICAN under the symbol “IHT”.

Additional Business Activities

• Diversification:
  • Invests in UniGen Power, Inc., a clean energy power generation company.
  • Possible future strategic moves include mergers or reverse mergers to seek a larger NYSE listing.

Market & Industry

• Highly competitive hotel industry, primarily mid-market properties.
• Faces competition from other hotels and alternative lodging such as Airbnb.
• Market conditions, hotel renovations, and new developments impact revenue and market share.
• Recovery from COVID-19 has resulted in record-high GOP profits in FY2025, mainly due to cost controls and modest room rate increases.

Regulatory Environment

• Subject to federal, state, and local laws regarding building, zoning, health, liquor licensing, ADA compliance, environmental liabilities, employment, and data privacy.
• Law changes and regulatory compliance can impact costs and operations.

Note: Specific figures for total revenue, net income, customer counts, and detailed financial results are not provided in this document.