InnSuites Hospitality Trust(US:IHT)2025-05-01 10:25Hotel Operations and Performance - The Trust owns a 75.89% general partner interest in RRF Limited Liability Limited Partnership, which controls a 51.62% interest in the Tucson hotel and a direct 21.90% interest in the Albuquerque hotel[9]. - The two hotels have a total of 270 suites and have achieved record high Gross Operating Profit (GOP) in Fiscal Year 2025, significantly exceeding both Covid and Pre-Covid levels[17]. - The Trust has remodeled 100% of each property's available suites and public areas over the last four years[34]. - The Trust's hotels are expected to see incremental demand over the next 24 months due to completed renovations meeting Best Western standards[19]. - The occupancy rate for the combined hotels decreased by approximately 1.75% to 74.58% in Fiscal Year 2025 from 75.91% in Fiscal Year 2024[59]. - Average Daily Rate (ADR) increased by $2.22, or 2.28%, to $99.68 in Fiscal Year 2025 from $97.46 in Fiscal Year 2024[59]. - Revenue Per Available Room (REVPAR) increased by $0.36, or 0.49%, to $74.34 in Fiscal Year 2025 from $73.98 in Fiscal Year 2024[59]. - The Trust's hotel operations are affected by seasonality, with the Tucson hotel experiencing highest occupancy in the first fiscal quarter and the Albuquerque hotel in the second and third fiscal quarters[175]. - The Trust's hotel operations are concentrated in the southwest region of the United States, with no operations or sources of revenue outside this area[204]. Financial Performance - For the Fiscal Year 2025, total revenues increased by approximately $109,000, or 1%, to $7,593,516 compared to $7,484,398 in Fiscal Year 2024[65]. - Operating expenses rose by approximately $130,884, or 2%, to $8,336,258 in Fiscal Year 2025 from $8,205,374 in Fiscal Year 2024[65]. - Consolidated net loss for Fiscal Year 2025 was $1,391,632, a decrease of $1,668,808, or 602%, compared to a net income of $277,176 in Fiscal Year 2024[65]. - Room revenues increased by 1% to approximately $7,336,000 for the Fiscal Year ending January 31, 2025, compared to $7,292,000 for the prior year[68]. - Total expenses before interest and taxes rose to approximately $8,336,000 for the twelve months ended January 31, 2025, an increase of approximately $131,000 from $8,205,000 in the previous year[69]. - The consolidated net loss for the year ended January 31, 2025, was $(1,391,632), compared to a net income of $277,176 for the year ended January 31, 2024[147]. - The total cash used in operating activities for the year ended January 31, 2025 was $(1,058,795), a significant decrease from the cash provided of $1,431,821 in the previous year[152]. - The Trust's balance of cash and cash equivalents at the end of the period was $92,752, down from $1,325,368 at the beginning of the period[152]. - The Trust's total equity decreased to $1,650,785 as of October 31, 2024, down from $1,958,829 as of July 31, 2024[150]. Strategic Plans and Future Outlook - The Trust anticipates selling one or both hotels within the next 36 months as part of its strategy to maximize shareholder returns[12]. - The Trust's operations for Fiscal Year 2026 focus on increasing asset value and total returns through profitable hotel operations and diversification, including investments in UniGen Power, Inc.[12]. - The Trust may seek further diversification through a merger or reverse merger with a larger non-public entity[20]. - The strategic plan includes seeking a larger private reverse merger partner to enhance market value and access to NYSE AMERICAN[54]. - The company anticipates steady leisure travel demand and modestly increased hotel rates in Fiscal Year 2026, despite challenges from the economy and inflation[85]. - The Trust seeks to sell one or both of its hotel properties within the next 36 months, although it cannot predict the timing or likelihood of such sales[102]. - Management is analyzing strategic options, including the potential sale or refinance of hotel properties, but such transactions may not be favorable[173][174]. Investments and Diversification - The Trust has invested $1 million in UniGen Power, Inc., which could result in up to 15-20% ownership in the company[56]. - The Trust's investment in UniGen Power, Inc. includes a $1 million initial investment and an additional $1,668,750, which consists of approximately $700,000 in note receivables, $300,000 in warrants, and $668,750 in common stock[110][115]. - The Trust's investment in UniGen is classified as a level 3 fair value measurement due to the lack of identical actively traded instruments[123]. - The Trust has issued common stock purchase warrants for up to 1,500,000 shares of UniGen, with exercise prices of $1.00 and $2.25 per share[113][114]. - UniGen's engineering work is 61% complete on its prototype, with the potential for the UPI 1000TA engine to be 33% more fuel-efficient than initially estimated, emitting only 25% of the maximum emissions allowed by CARB[118][120]. - The total market demand for electricity in the U.S. is projected to double over the next five years, driven by increased demand from data centers, electric vehicles, and artificial intelligence[111][120]. Shareholder Returns and Dividends - The Trust intends to maintain a steady conservative dividend policy, having declared uninterrupted annual dividends for 55 years[41]. - The Trust paid a semi-annual dividend of $0.01 per share for Fiscal Years 2025 and 2024, totaling $177,970 and $180,120 respectively, maintaining uninterrupted dividends for 55 consecutive years[198]. - The Trust's dividends paid for the year ended January 31, 2025 were $(177,970), slightly down from $(180,120) in the previous year[152]. Risks and Challenges - The Trust's operations are vulnerable to risks such as travel disruptions and economic downturns, which could significantly impact revenues and profits[176]. - The Trust has no off-balance sheet financing arrangements or liabilities, and it does not expect to recognize any impairment losses on hotel properties for Fiscal Years 2025 or 2024[99][101]. - The Trust's liquidity is primarily dependent on hotel room reservation revenues and management fees, with a related party line of credit of approximately $1.15 million and a maximum borrowing capacity of $2 million[169][171]. - The Trust had approximately $93,000 in cash as of January 31, 2025, and believes it has sufficient cash to meet financial obligations for the next twelve months[173].