PHOENIX, AZ -- (Marketwired) -- 12/15/15 -- InnSuites Hospitality Trust (NYSE MKT: IHT) ("IHT") reported approximately a $1.34 million consolidated net income for its third fiscal quarter for the period ended October 31, 2015 which increased approximately $2.03 million from a consolidated net loss of approximately $1.26 million for the third fiscal quarter ended October 31, 2014.
IHT recently privately placed an additional $1.5 million in addition to the earlier private placement of $1.1 million for a total new equity capital surge of $2.6 million in the last 60 days.
The company sold its hotel Tucson City Center October 14 producing a profit of approximately $2.4 million. The culmination of the real estate sale plus the private equity raised increased total book value equity above the $6 million level which is the level required by the New York Stock Exchange. The company believes that the actual Equity based on market value of the assets significantly exceeds equity based on book value confirmed by the sale the hotel Tucson City Center ("HTCC") sold $3 million above book value and further confirmed by a recent Non-binding offer subject to buyers financing to purchase another one of its hotel assets at a value of $5 million above its book value.
On August 1, 2015 the company placed four of its real estate assets up for sale and sold HTCC on October 14, 2015 with the remaining three assets accounted for as "held for sale" under discontinued operations.
IHT believes it will have increased its equity as required by the New York Stock Exchange and anticipates it will report a positive consolidated net income even after non-cash depreciation expense for its current fiscal year ending January 31, 2016 which is projected to be a significant improvement from the consolidated net loss reported in the prior fiscal year ended January 31, 2015.
IHT continues to move from its current bricks and mortar real estate ownership toward its rapidly growing IBC digital hotel services focus.
Pamela J. Barnhill, President and COO of the Trust, confirmed the continued focus on both the organic and potentially acquisition growth of its IBC digital division.
With the exception of historical information, the matters discussed in this news release may include "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance due to numerous risks and uncertainties and are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained.
For more information visit www.innsuitestrust.com or www.sec.gov.
FOR FURTHER INFORMATION:
Marc Berg
Executive Vice President
602-944-1500
email: mberg@innsuites.com
