INNSUITES HOSPITALITY TRUST
For the period ended Jul 31, 2026. Filed Sep 16, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2026 · Filed Sep 16, 2026
IHT$1.00+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-30; filed 2026-06-22.
0001493152-26-029438
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-31; filed 2026-09-16.
0001493152-26-042806
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 126 previous paragraphs and 155 current paragraphs.
73 unchanged; 38 reworded; 42 added; 15 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 11 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JULY 31, 2026 COMPARED TO THE SIX MONTHS ENDED JULY 31, 2025
Current report
A summary of total operating results of the Trust for the six months ended July 31, 2026 and 2025 is as follows:
Current report
Total Consolidated Net Loss for the six months ended July 31, 2026 was approximately $222,000 compared to Total
Current report
Consolidated Net Loss of approximately $362,000 for the six months ended July 31, 2025, a decrease in net loss of approximately $140,000, or 39%. Earnings Per Share based on net loss attributable to Controlling Interests were ($0.03) compared to ($0.06) in the prior-year period.
Current report
Total Equity decreased to a deficit of approximately $1.24 million at July 31, 2026, down approximately $1.43 million from Total Equity of approximately $199,000 at July 31, 2025.
Current report
Net Income before non-cash depreciation expense was approximately $131,000 for the six months ended July 31, 2026, compared to Net Income before non-cash depreciation expense of approximately $9,000 for the six months ended July 31, 2025, an improvement of approximately $149,000.
Current report
We realized a 1% increase in room revenues during the six months ended July 31, 2026 as room revenues were approximately $3.89 million compared to approximately $3.85 million for the six months ended July 31, 2025.
Current report
Combined hotel occupancy increased to 83.42% from 80.96%, an increase of approximately 3%, while Average Daily Rate decreased approximately 2% to $95.49 from $96.95. Revenue Per Available Room increased approximately 2% to $79.66 from $78.48. The increase in room revenue was driven by higher occupancy, partially offset by lower average daily rates. During the balance of Fiscal Year 2027, we expect stable hotel occupancy and modest improvements in hotel rates. InnSuites identifies the period from February 1, 2026 through January 31, 2027 as Fiscal Year 2027.
Current report
Total operating expenses were approximately $4.04 million for the six months ended July 31, 2026, reflecting an increase of approximately $17,000, or less than 1%, compared to total operating expenses of approximately $4.02 million for the six months ended July 31, 2025. The increase was primarily due to increases in sales and marketing and general and administrative expenses, partially offset by decreases in repairs and maintenance, food and beverage expenses, and real estate and personal property taxes, insurance and ground rent.
Current report
Room expenses consisting of payroll and related employment taxes for property management, front office, housekeeping personnel, reservation fees and room supplies were approximately $1.31 million for the six months ended July 31, 2026 compared to approximately $1.31 million in the prior-year six-month period, an increase of approximately $5,000, or less than 1%. Room expenses remained relatively stable despite the increase in hotel occupancy.
Current report
Food and beverage expenses included food and beverage costs, personnel and miscellaneous costs to provide banquet events. For the six months ended July 31, 2026, food and beverage expenses decreased approximately $19,000, or 34%, to approximately $37,000 compared to approximately $55,000 for the six months ended July 31, 2025. Food and beverage revenue increased approximately $5,000, or 8%, to approximately $60,000 from approximately $56,000 in the prior-year period.
Current report
Repairs and maintenance expense decreased approximately $30,000, or 14%, to approximately $188,000 for the six months ended July 31, 2026 compared to approximately $217,000 for the six months ended July 31, 2025. Having completed the property improvements at our Tucson, Arizona hotel, Management anticipates that these improvements, which comply with Best Western standards, will improve guest satisfaction and support additional revenue growth through increased occupancy and rates.
Current report
Hospitality expense remained relatively flat at approximately $311,000 for the six months ended July 31, 2026 compared to approximately $308,000 for the six months ended July 31, 2025.
Current report
Utility expense increased approximately $8,000, or 4%, to approximately $194,000 for the six months ended July 31, 2026 compared to approximately $186,000 for the six months ended July 31, 2025.
Current report
Hotel property depreciation expense increased by approximately $9,000, or 3%, to approximately $380,000 for the six months ended July 31, 2026 compared to approximately $371,000 for the six months ended July 31, 2025. Increased depreciation resulted from additional capital expenditures.
Current report
REVENUE:
Current report
Net Loss before non-cash depreciation expense was approximately $112,000 for the three months ended July 31, 2026, compared to Net Loss before non-cash depreciation expense of approximately $213,000 for the three months ended July 31, 2025, an improvement of approximately $101,000.
Current report
We realized a 3% increase in room revenues during the three months ended July 31, 2026 as room revenues were approximately $1.77 million compared to approximately $1.72 million for the three months ended July 31, 2025, an increase of approximately $52,000. During the balance of Fiscal Year 2027, we expect stable hotel occupancy and modest improvements in hotel rates.
Current report
EXPENSES:
Current report
Total operating expenses were approximately $2.02 million for the three months ended July 31, 2026, reflecting a decrease of approximately $21,000, or 1%, compared to total operating expenses of approximately $2.04 million for the three months ended July 31, 2025. The decrease was primarily due to decreases in general and administrative expenses, repairs and maintenance expenses, and food and beverage expenses, partially offset by increases in sales and marketing expenses, room expenses, hospitality expenses and utility expenses.
Current report
Sales and marketing expense increased approximately $26,000, or 25%, to approximately $133,000 for the three months ended July 31, 2026 from approximately $107,000 for the three months ended July 31, 2025. The increase reflects increased sales and marketing efforts.
Current report
Hospitality expense increased approximately $9,000, or 6%, to approximately $159,000 for the three months ended July 31, 2026 compared to approximately $150,000 for the three months ended July 31, 2025.
Current report
Utility expense increased approximately $7,000, or 7%, to approximately $107,000 for the three months ended July 31, 2026 compared to approximately $100,000 for the three months ended July 31, 2025.
Current report
Hotel property depreciation expense remained relatively stable at approximately $185,000 for the three months ended July 31, 2026 compared to approximately $188,000 for the three months ended July 31, 2025, a decrease of approximately $3,000, or 2%.
Current report
Real estate and personal property taxes, insurance and ground rent expenses remained relatively flat at approximately $169,000 for both the three months ended July 31, 2026 and July 31, 2025.
Current report
Subsequent to July 31, 2026, on August 19, 2026, the Trust converted $3,000,000 of indebtedness owed under its related-party Demand/Revolving Line of Credit/Promissory Note with Rare Earth Financial, LLC into 1,829,268 Shares of Beneficial Interest at $1.64 per share. The conversion eliminated $3,000,000 of related-party indebtedness and strengthened the Trust’s shareholders’ equity subsequent to the end of the Fiscal Second Quarter. The transaction did not require the use of cash and therefore provides the Trust with additional balance sheet options as it manages its liquidity and capital resources.
Current report
Changes in operating assets and liabilities, including accounts receivable, prepaid expenses and other assets, operating lease liabilities, and accounts payable and accrued expenses, resulted in a net use of cash of approximately $315,000 during the six months ended July 31, 2026 compared to a net source of cash of approximately $105,000 during the six months ended July 31, 2025. The approximately $420,000 unfavorable change was primarily attributable to increases in accounts receivable and decreases in accounts payable and accrued expenses during the six months ended July 31, 2026.
Current report
Net cash used in investing activities totaled approximately $155,000 for the six months ended July 31, 2026 compared to approximately $415,000 for the six months ended July 31, 2025, a decrease in cash used of approximately $260,000. The decrease was primarily due to lower improvements and additions to hotel properties, which totaled approximately $145,000 during the six months ended July 31, 2026 compared to approximately $415,000 during the six months ended July 31, 2025. During the six months ended July 31, 2026, the Trust also made approximately $11,000 of payments on its investment in Unigen.
Current report
Net cash provided by financing activities totaled approximately $199,000 for the six months ended July 31, 2026 compared to approximately $402,000 for the six months ended July 31, 2025, a decrease of approximately $204,000. The decrease was primarily due to lower borrowings on Notes Payable - Related Party and the absence of borrowings on Notes Payable to Banks during the six months ended July 31, 2026, partially offset by the absence of dividend payments during the current-year period.
Current report
Principal payments on mortgage notes payable were approximately $130,000 during the six months ended July 31, 2026 compared to approximately $144,000 during the six months ended July 31, 2025.
Current report
Borrowings on Notes Payable to Banks were $0 during the six months ended July 31, 2026 compared to approximately $80,000 during the six months ended July 31, 2025.
Current report
Borrowings on Notes Payable - Related Party were approximately $355,000 during the six months ended July 31, 2026 compared to approximately $565,000 during the six months ended July 31, 2025.
Current report
Cash used in treasury stock activity was approximately $26,000 during the six months ended July 31, 2026 compared to $0 during the six months ended July 31, 2025.
Current report
During the six months ended July 31, 2026, payment of dividends was $0 compared with approximately $88,000 during the six months ended July 31, 2025.
Current report
The Trust’s Management received communication from the NYSE-American on June 24, 2026, indicating IHT is not in compliance with the continued listing standards set forth in Section 1003(a)(i) of the NYSE American Company Guide. The notice states that the Trust reported stockholders’ deficit of approximately $(921,921) as of April 30, 2026, and losses from continuing operations and/or net losses in two of its three most recent fiscal years ended January 31, 2026.
Current report
The notice has no immediate effect on the listing or trading of the Trust’s shares of beneficial interest on NYSE American, subject to the Trust’s compliance with NYSE American’s other continued listing requirements.
Current report
The notice required the Trust to submit a plan of compliance by July 24, 2026, advising NYSE American of actions the Trust has taken or will take in an effort to regain compliance with the continued listing standards by December 24, 2027. The Trust submitted this plan of compliance timely, on July 24, 2026, to NYSE American.
Current report
The Trust’s compliance plan included, subject to applicable approvals and conditions, one or more actions intended to increase shareholders’ equity and support continued listing compliance, including conversion of a $3,000,000 related-party indebtedness into IHT equity at a market-based price, additional capital-raising transactions, debt or capitalization restructuring, strategic transactions, reduction or deferral of certain cash uses, operational initiatives intended to improve hotel gross operating profits, and seeking a larger strong financial merger or reverse merger.
Current report
Subsequent to July 31, 2026, the Trust completed one of the actions contemplated by its compliance plan. On August 19, 2026, the Trust entered into a Debt Conversion Agreement with Rare Earth Financial, LLC pursuant to which $3,000,000 of related-party indebtedness was converted into 1,829,268 Shares of Beneficial Interest at $1.64 per share. The conversion eliminated $3,000,000 of related-party indebtedness and increased the Trust’s shareholders’ equity subsequent to the Fiscal Second Quarter. The Trust intends to continue pursuing actions under its compliance plan designed to regain compliance with the NYSE American continued listing standards within the applicable plan period.
Current report
Upon NYSE American acceptance, the Trust’s compliance plan, the Trust will be subject to periodic review, including quarterly monitoring, for compliance with the plan. If the NYSE American does not accept the plan, if the Trust does not regain compliance by December 24, 2027, or if the Trust does not make progress consistent with the plan during the plan period, NYSE American may initiate delisting proceedings.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (15)
Previous report
RESULTS OF OPERATIONS FOR THE FISCAL THREE MONTHS ENDED APRIL 30, 2026 COMPARED TO THE FISCAL THREE MONTHS ENDED APRIL 30, 2025
Previous report
Total Trust Equity decreased to ($921,921) at the end of Fiscal First Quarter 2026, up approximately $76,000, from the ($998,842) reported at the end of the Fiscal First Year 2026. Net Income before non-cash depreciation expense was $177,701 for the Fiscal First Quarter ended April 30, 2026, compared to $61,268 for the Fiscal First Quarter ended April 30, 2025, which is an increase of approximately $115,000.
Previous report
Room revenues were essentially flat during the three months ended April 30, 2026, at approximately $2.12 million for the three months ending April 30, 2026, and April 30, 2025, respectively. Due to the increased occupancy, food and beverage revenue increased approximately 12% to approximately $34,000 for the three months ending April 30, 2026 as compared to approximately $30,000 during the three months ending April 30, 2025, an increase of approximately $4,000. During Fiscal Year 2027, we expect additional modest improvements in occupancy, modest improvements in rates and steady food and beverage revenues.
Previous report
Total expenses net of interest expense were approximately $2.02 million for the three months ended April 30, 2026, reflecting an increase of approximately $37,000, or 2%, compared to total expenses net of interest expense of approximately $1.98 million for the three months ended April 30, 2025.
Previous report
Hospitality expenses, which includes the cost associated with our complimentary hot, healthy breakfast, decreased by approximately $7,000, or 4%, from approximately $158,000 for the three months ended April 30, 2025 to approximately $152,000 for the three months ended April 30, 2026. The decrease was primarily due to more effective cost management in our complimentary breakfast and social hour offerings.
Previous report
Utility expenses increased approximately $1,000, or 1%, to approximately $87,000 reported for the three months ended April 30, 2026 compared with approximately $86,000 for the three months ended April 30, 2025.
Previous report
Hotel property non-cash depreciation expenses increased by approximately $13,000 from approximately $182,000 reported for the three months ended April 30, 2025 to approximately $195,000 for the three months ended April 30, 2026.
Previous report
Net cash used in investing activities totaled approximately $75,000 for the three months ended April 30, 2026 compared to net cash used in investing activities of approximately $196,000 for the three months ended April 30, 2025. The decrease in net cash used in investing activities during the three months ended April 30, 2026 was due primarily to lower spending on capital improvements in the hotels.
Previous report
Net cash used in financing activities totaled approximately $(193,000) and $(164,000), respectively, for the three months ended April 30, 2026 and 2025. The increase of approximately $29,000 was primarily due to higher payments on notes payable to related parties.
Previous report
Principal payments on mortgage notes payable for continuing operations were approximately $77,000 and $87,000 during the three months ended April 30, 2026 and 2025, respectively.
Previous report
Payments on notes payable–related party were approximately $113,000 and $67,000 of cash used in financing activities during the three months ended April 30, 2026 and 2025, respectively.
Previous report
During the three months ended April 30, 2026, our distributions to non-controlling interest holders was approximately $0 compared with approximately $0 for the three months ended April 30, 2025.
Previous report
As a partial balance to the current hotel industry, the Trust looks to benefit from, and expand, its UniGen clean energy operation diversification investment and IBC management in the year ahead. See Note 16 of the unaudited consolidated financial statements for discussion on IBC, and Note 3 for discussion on UniGen.
Previous report
The Trust’s Management received communication from the NYSE-American on August 29, 2022, indicating IHT is fully compliant with all of the Continued Listing Standards Equity Requirements set forth in Part 10 of the NYSE American Company Guide, of the NYSE-American. The Trust seeks to take steps as needed/where needed, to maintain continued listing Equity requirement standards.
Previous report
The total of all stock ownership upon conversion of the $1 million debenture and exercise of warrants could amount to approximately up to 15-20% of fully diluted UniGen equity.
Reworded paragraphs (38)
Previous wording
Certain statements in this Form 10-Q, including statements containing the phrases “believes,” “intends,” “expects,” “anticipates,” “predicts,” “projects,” “will be,” “should be,” “looking ahead,” “may” or similar words, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend that such forward-looking statements be subject to the safe harbors created by such Acts. These forward-looking statements include statements regarding our intent, belief or current expectations in respect of (i) the declaration or payment of dividends; (ii) the leasing, management or operation of the Hotels; (iii) the adequacy of reserves for renovation and refurbishment; (iv) our financing plans; (v) our position regarding investments, acquisitions, developments, financings, conflicts of interest and other matters; (vi) expansion of UniGen; (vii) our plans and expectations regarding future sales of hotel properties; and (viii) trends affecting our or any Hotel’s financial condition or results of operations.
Current wording
Certain statements in this Form 10-Q, including statements containing the phrases “believes,” “intends,” “expects,” “anticipates,” “predicts,” “projects,” “will be,” “should be,” “looking ahead,” “may” or similar words, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend that such forward-looking statements be subject to the safe harbors created by such Acts. These forward-looking statements include statements regarding our intent, belief or current expectations in respect of (i) the declaration or payment of dividends; (ii) the leasing, management or operation of the Hotels; (iii) the adequacy of reserves for renovation and refurbishment; (iv) our equity financing plans; (v) our position regarding investments, acquisitions, developments, financings, conflicts of interest and other matters; (vi) expansion of UniGen; (vii) our plans and expectations regarding future sales of hotel properties; (viii) trends affecting our or any Hotel’s financial condition or results of operations; and (ix) potential of a future merger or reverse merger.
Previous wording
In addition, we manage InnDependent Boutique Collection Hotels, (IBC Hotels, LLC), offering reservations and branding services to independent hotels, with new technology reservations and booking engine technology provided, and with an option to purchase IBC Hotels, LLC, at cost over the next five years. We hold a diversification investment in UniGen Power Inc., which is developing an efficient clean energy portable efficient electricity generator innovation.
Current wording
We manage InnSuites Hotels and InnDependent Boutique Collection Hotels, (IBC Hotels, LLC), offering reservations and branding services to independent hotels, with new technology reservations and booking engine technology provided, and with an option to purchase IBC Hotels, LLC, at cost over the next five years. We hold a diversification investment in UniGen Power Inc., which is developing an efficient clean energy portable efficient electricity generator innovation.
Previous wording
Over time, we expect our high risk but also high profit potential UniGen diversification efficient clean energy generation investment, to grow and provide a substantial source of income in the future. We also expect profit potential from IBC management, and the five-year option to purchase IBC, LLC, at cost.
Current wording
Over time, we expect our high risk but also high profit potential UniGen diversification efficient clean energy generation investment, to grow and provide a growing source of income in the future. We also expect profit potential from IBC management, and the five-year option to purchase IBC, LLC, at cost.
Previous wording
On February 20, 2026, the IHT President, Secretary/Treasurer, and CFO of InnSuites Hospitality Trust, were all three elected to similar management positions of UniGen Power, Inc. With this new UniGen Management in place, IHT expects our UniGen diversification efficient clean energy generation investment to be reinvigorated to grow and potentially provide a substantial source of income in the future. In addition, our RRF Management subsidiary took over Management of InnDependent Boutique Collection, LLC (IBC Hotels), during the Fiscal Year just ended, January 31, 2026, raising expectations of additional profits in the area of independent/boutique hotel reservations, and other hotel services for Global boutique and independent resorts and hotels. Independent hotels represent half the world’s hotels and resorts.
Current wording
On February 20, 2026, the IHT President, Secretary/Treasurer, and CFO of InnSuites Hospitality Trust, were all three elected to similar management positions of UniGen Power, Inc. With this new UniGen Management in place, IHT expects our UniGen diversification efficient clean energy generation investment to be reinvigorated to grow and potentially provide a growing source of income in the future. In addition, our RRF Management subsidiary took over Management of InnDependent Boutique Collection, LLC (IBC Hotels), during the Fiscal Year just ended, January 31, 2026, raising expectations of additional profits in the area of independent/boutique hotel reservations, and other hotel services for Global boutique and independent resorts and hotels. Independent hotels represent half the world’s hotels and resorts.
Previous wording
We expect the current Fiscal Year 2027 to be stable in the domestic travel industry, stable relatively high level Hotel occupancy, modest increases of room rates, as well as continuation of current cost control all leading to stable, or moderately increasing profitability of our hotels. We believe that we have positioned the Hotels to remain competitive through our now fully completed Tucson and Albuquerque hotel refurbishments, by offering fully refurbished studios and two-room suites at each location, and by maintaining popular complementary guest amenities, including complimentary hot, healthy breakfast and free high-speed Internet access.
Current wording
We expect the current Fiscal Year 2027 to be stable in the domestic travel industry, stable Hotel occupancy, stable room rates, as well as continuation of current cost control all leading to stable, or moderately increasing profitability of our hotels. We believe that we have positioned the Hotels to remain competitive through our now fully completed Tucson and Albuquerque hotel refurbishments, by offering fully refurbished studios and two-room suites at each location, and by maintaining popular complementary guest amenities, including complimentary hot, healthy breakfast and free high-speed Internet access.
Previous wording
Our expenses consist primarily of property taxes, insurance, corporate overhead, interest on mortgage debt, professional fees, hotel operating expenses, and non-cash depreciation of the Hotels. Hotel operating expenses consist primarily of payroll, guest and maintenance supplies, marketing, and utilities expenses. Management believes that a review of the historical performance of the operations of the Hotels, particularly with respect to Occupancy, which is calculated as rooms sold divided by total rooms available, average daily rate (“ADR”), calculated as total room revenue divided by number of rooms sold, and revenue per available room (“REVPAR”), calculated as total room revenue divided by number of rooms available, is appropriate for understanding operation of the Hotels.
Current wording
Our expenses consist primarily of property taxes, insurance, corporate overhead, interest on mortgage debt, professional fees, non-cash depreciation of the Hotels and hotel operating expenses. Hotel operating expenses consist primarily of payroll, guest and maintenance supplies, marketing, and utilities expenses. Management believes that a review of the historical performance of the operations of the Hotels, particularly with respect to Occupancy, which is calculated as rooms sold divided by total rooms available, Average Daily Rate (“ADR”), calculated as total room revenue divided by number of rooms sold, and Revenue Per Available Room (“REVPAR”), calculated as total room revenue divided by number of rooms available, is appropriate for understanding revenue from the Hotels.
Previous wording
Sales and marketing expense increased approximately $9,000, or 7%, to approximately $136,000 for the three months ended April 30, 2026 from approximately $127,000 for the three months ended April 30, 2025. Increased focus on sales and marketing drove the increase.
Current wording
Sales and marketing expense increased approximately $35,000, or 15%, to approximately $269,000 for the six months ended July 31, 2026 from approximately $234,000 for the six months ended July 31, 2025. Increased focus on sales and marketing spend drove the increase.
Previous wording
Real estate and personal property taxes, Insurance and Ground Rent expenses decreased approximately $25,000, or 16%, to approximately $133,000 reported for the three months ended April 30, 2026 compared with approximately $158,000 for the three months ended April 30, 2025.
Current wording
Real estate and personal property taxes, insurance and ground rent expenses decreased approximately $25,000, or 8%, to approximately $302,000 for the six months ended July 31, 2026 compared with approximately $327,000 for the six months ended July 31, 2025.
Previous wording
Changes in assets and liabilities for accounts receivable, prepaid expenses and other assets and accounts payable and accrued expenses totaled approximately $(316,000) and $58,000 for the three months ended April 30, 2026 and 2025, respectively. This significant decrease in changes in assets and liabilities for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 was due to the decrease in operating liabilities related to ongoing operations.
Current wording
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JULY 31, 2026 COMPARED TO THE THREE MONTHS ENDED JULY 31, 2025
Previous wording
For the First Fiscal Quarter three months ended April 30, 2026, we had total revenue of approximately $2.19 million compared to approximately $2.21 million for the three months ended April 30, 2025, a decrease of approximately $12,000. In the prior Fiscal Years ended January 31, 2026, 2025 and 2014, we made significant improvements to our Albuquerque, New Mexico and Tucson, Arizona hotels. During the three months ended April 30, 2026, total revenue remained relatively stable, benefiting from prior refurbishments.
Current wording
For the three months ended July 31, 2026, we had total revenue of approximately $1.84 million compared to approximately $1.80 million for the three months ended July 31, 2025, an increase of approximately $38,000, or 2%. In the prior fiscal years ended January 31, 2026, 2025 and 2024, we made significant improvements to our Albuquerque, New Mexico and Tucson, Arizona hotels. During the three months ended July 31, 2026, total revenue increased, benefiting from prior refurbishments and increased sales and marketing efforts.
Previous wording
Total Consolidated Net Income for the three months ended April 30, 2026 was approximately $75,000, an increase of approximately $36,000 compared to approximately $39,000 for the same prior Fiscal Quarter. Net loss attributable to Controlling Interests was approximately $18,000 for the three months ended April 30, 2026, compared to a net loss attributable to Controlling Interests of approximately $121,000 for the same prior period. Net loss per share – basic and diluted – attributable to Controlling Interests was negative at $0.00 for the three months ended April 30, 2026, flat to net loss per share of $(0.01) for the prior year three month period.
Current wording
Total Consolidated Net Loss for the three months ended July 31, 2026 was approximately $297,000 compared to approximately $401,000 for the three months ended July 31, 2025, a decrease in net loss of approximately $104,000, or 26%. Net Loss attributable to Controlling Interests was approximately $230,000 for the three months ended July 31, 2026 compared to approximately $391,000 for the three months ended July 31, 2025, a decrease in net loss of approximately $161,000, or 41%. Net Loss Per Share - Basic and Diluted - attributable to Controlling Interests was ($0.02) compared to ($0.04) in the prior-year three-month period.
Previous wording
Room expenses consisting of salaries and related employment taxes for property management, front office, housekeeping personnel, reservation fees and room supplies were approximately $645,000 for the three months ended April 30, 2026 down from $661,000 in the prior year three month period for an improvement of approximately $16,000, or 2%. Room expenses decreased despite increased occupancy at the hotels, due to effective cost management.
Current wording
Room expenses consisting of salaries and related employment taxes for property management, front office and housekeeping personnel, reservation fees and room supplies were approximately $669,000 for the three months ended July 31, 2026 compared to approximately $647,000 in the prior-year three-month period, an increase of approximately $22,000, or 3%.
Previous wording
Food and beverage expenses included food and beverage costs, personnel and miscellaneous costs to provide banquet events. For the three months ended April 30, 2026, food and beverage expenses remained relatively flat at approximately $24,000 for the three months ended April 30, 2026, compared to approximately $26,000 for the three months ended April 30, 2025. There were several cost savings initiatives to offset rising food and beverage purchasing costs.
Current wording
Food and beverage expenses included food and beverage costs, personnel and miscellaneous costs to provide banquet events. For the three months ended July 31, 2026, food and beverage expenses decreased approximately $16,000, or 55%, to approximately $13,000 compared to approximately $29,000 for the three months ended July 31, 2025. Food and beverage revenue increased approximately $1,000, or 3%, to approximately $26,000 compared to approximately $25,000 in the prior-year period.
Previous wording
General and administrative expenses include overhead charges for management, accounting, shareholder and legal services. General and administrative expenses of approximately $547,000 for the three months ended April 30, 2026, increased approximately $79,000, or 17%, from approximately $468,000 for the three months ended April 30, 2025 primarily due to increased corporate overhead costs.
Current wording
General and administrative expenses include overhead charges for management, accounting, shareholder and legal services. General and administrative expenses of approximately $483,000 for the three months ended July 31, 2026 decreased approximately $48,000, or 9%, from approximately $531,000 for the three months ended July 31, 2025, primarily due to lower corporate staffing and support costs.
Previous wording
Repairs and maintenance expense decreased by approximately $13,000, or 11%, from approximately $109,000 reported for the three months ended April 30, 2025 to approximately $96,000 for the three months ended April 30, 2026. Having completed the property improvements at our Tucson, Arizona hotel Management anticipates the improvements which complies with the increasing Best Western standards, will (after the adverse effects of travel restrictions and slowdown), lead to improvement in guest satisfaction and will drive additional revenue growth through increased occupancy and increased rates.
Current wording
Repairs and maintenance expense decreased approximately $17,000, or 16%, to approximately $91,000 for the three months ended July 31, 2026 compared to approximately $108,000 for the three months ended July 31, 2025. Having completed the property improvements at our Tucson, Arizona hotel, Management anticipates that these improvements, which comply with Best Western standards, will improve guest satisfaction and support additional revenue growth through increased occupancy and rates.
Previous wording
Two principal sources of cash to meet our cash requirements, include monthly management/accounting fees from our two hotels and distributions of our share of the Partnership’s cash flow of the Tucson hotel, as well as quarterly distributions from the Albuquerque, New Mexico properties. Additional sources of cash include potential new intercompany loans and loan repayments, potential future real estate hotel sales/refinances, and potential returns on diversified investments. The Partnership’s principal source of revenue is hotel operations for the hotel property it owns in Tucson, Arizona, as well as management fees from hotels and IBC reservations. Our liquidity, including our ability to make distributions to our Tucson Investors, will depend upon our ability, and the Partnership’s ability, to generate sufficient cash flow from hotel operations, from management fees, and from the potential sale and/or refinance of the hotel, and to service our debt including repayment of an intercompany loan related to Tucson.
Current wording
Two principal sources of cash to meet our cash requirements, include monthly management/accounting fees from our two hotels and distributions of our share of the Partnership’s cash flow of the Tucson hotel, as well as quarterly distributions from the Albuquerque, New Mexico properties. Additional sources of cash include potential intercompany loans and hotel loan repayments, potential future real estate hotel sales/refinances, and potential returns on diversified investments. The Partnership’s principal source of revenue is hotel operations for the hotel property it owns in Tucson, Arizona, as well as management fees from hotels and IBC reservations. Our liquidity, including our ability to make distributions to our Tucson Investors, will depend upon our ability, and the Partnership’s ability, to generate sufficient cash flow from hotel operations, from management fees, and from the potential sale and/or refinance of the hotel, and to service our debt including repayment of an intercompany loan related to Tucson.
Previous wording
Hotel operations were positively affected by stable room rates at the Hotels in the Fiscal Year 2026, and stable occupancy, rates, and/or cost controls the First Fiscal Quarter of Fiscal 2027, ended April 30, 2026, as the travel industry momentum stabilizes.
Current wording
Hotel operations experienced stable room rates at the Hotels in the Fiscal Year 2026, and stable occupancy, rates, and/or cost controls the First Two Fiscal Quarters of Fiscal 2027, ended July 31, 2026, as the travel industry momentum stabilizes.
Previous wording
With approximately $41,000 of cash as of April 30, 2026 and the availability of three $250,000 bank lines of credit, potential funds available from the $2,500,000 related party Demand/Revolving Line of Credit/Promissory Note, and the availability of Advances to Affiliate credit facilities and available Bank lines of Credit, we believe that we will have enough cash on hand to meet all of our financial obligations as they become due for at least the next twelve months from the issuance date of the these consolidated financial statements. Our management is analyzing strategic options available to us, including raising additional funds, asset sales, benefitting from clean energy investment, and IBC cash flow as our diversification investment matures, and a possible reverse merger. However, such transactions may not be available on terms that are favorable to us, or at all.
Current wording
With approximately $247,000 of cash as of July 31, 2026, the availability under our bank lines of credit and other credit facilities, and access to related-party financing, we believe that we will have sufficient liquidity to meet our financial obligations as they become due for at least the next twelve months from the issuance date of these consolidated financial statements. Our management is analyzing strategic options available to us, including raising additional funds, asset sales, benefiting from clean energy investments and IBC cash flow as our diversification investment matures, and a possible reverse merger. However, such transactions may not be available on terms that are favorable to us, or at all.
Previous wording
There can be no assurance that we will be successful fully collecting receivables, in refinancing debt, or raising additional or replacement funds, or that these funds may be available on terms that are favorable to us. If we are unable to raise additional or replacement funds, we may be required to sell or refinance certain of our assets to meet our liquidity needs, which may not be on terms that are favorable.
Current wording
There can be no assurance that we will be successful in fully collecting receivables, refinancing debt, or raising additional or replacement funds, or that such funds will be available on terms that are favorable to us. If we are unable to raise additional or replacement funds, we may be required to sell or refinance certain of our assets to meet our liquidity needs, which may not be on terms that are favorable to us.
Previous wording
We anticipate stable leisure and business travel demand, and limited additional new-build hotel supply in our markets during the current Fiscal Year 2027, and accordingly we anticipate stable revenues or moderately improving, and operating margins. We expect challenges, but also optimism, for the remaining Fiscal Year, based on fluctuating oil prices, a strong economy, inflation, both up and down, and internal cost control.
Current wording
We anticipate stable leisure and business travel demand and limited additional new-build hotel supply in our markets during the current Fiscal Year 2027, and accordingly anticipate stable to moderately improving revenues and operating margins. We expect both challenges and opportunities for the remainder of the fiscal year based on fluctuating oil prices, general economic conditions, inflation and internal cost controls
Previous wording
Cash used in operating activities from continuing operations totaled approximately $41,000 during the three months ended April 30, 2026 improved compared to net cash provided of approximately $280,000 during the three months ended April 30, 2025. Consolidated net income was approximately $75,000 for the three months ended April 30, 2026 as compared to consolidated net income for the three months ended April 30, 2025 of approximately $39,000. Explanation of the differences between these fiscal years are explained above in the results of operations of the Trust.
Current wording
Net cash used in operating activities totaled approximately $147,000 during the six months ended July 31, 2026 compared to net cash provided by operating activities of approximately $127,000 during the six months ended July 31, 2025, a decrease in operating cash flow of approximately $274,000. Consolidated Net Loss was approximately $222,000 for the six months ended July 31, 2026 compared to approximately $362,000 for the six months ended July 31, 2025, an improvement of approximately $140,000. The differences between these fiscal periods are discussed above in the Results of Operations of the Trust.
Previous wording
Changes in the adjustments to reconcile net income for the three months ended April 30, 2026 and 2025, respectively, consist primarily of operating lease costs, stock-based compensation, hotel property depreciation, and changes in assets and liabilities. Hotel property depreciation was approximately $195,000 during the three months ended April 30, 2026 compared to approximately $182,000 during the three months ended April 30, 2025, an increase of approximately $13,000 as the Trust recognized more depreciation due to increased hotel property investment.
Current wording
Adjustments to reconcile Consolidated Net Loss to net cash used in or provided by operating activities for the six months ended July 31, 2026 and 2025 consisted primarily of stock-based compensation, hotel property depreciation, and changes in operating assets and liabilities. Hotel property non-cash depreciation was approximately $380,000 during the six months ended July 31, 2026 compared to approximately $371,000 during the six months ended July 31, 2025, an increase of approximately $9,000.
Previous wording
We continue to contribute to a Capital Expenditures Fund (the “Fund”) an amount equal to 4% of our Tucson InnSuites Hotel revenues from operation of the Hotel. The Fund is restricted by the mortgage lender for our Tucson property. As of April 30, 2026, and 2024, there were no monies held in these accounts reported on our unaudited condensed consolidated Balance Sheet as “Restricted Cash.” The Fund is intended to be used for capital improvements to the Hotels and refurbishment and replacement of furniture, fixtures and equipment. During the three months ended April 30, 2026 and 2024, the Hotel spent approximately $64,000 and $196,000 respectively, for capital expenditures. The capital expenditures were primarily associated with the property improvements at the Hotel, as required to meet continuing Best Western standards. We consider most of these improvements to be revenue producing. Therefore, these amounts are capitalized and depreciated over their estimated useful lives. For the remaining Fiscal Year 2025 capital expenditures, we plan on spending less on capital improvements as we have completed our property improvements at our Tucson, Arizona hotel and our Albuquerque hotel, both of which required significant amounts of capital improvements in prior periods. Repairs and maintenance were charged to expense as incurred and approximated $96,000 and $109,000 for the three months ended April 30, 2026 and 2025, respectively.
Current wording
We continue to contribute to a Capital Expenditures Fund (the “Fund”) an amount equal to 4% of our Tucson InnSuites Hotel revenues from operation of the Hotel. The Fund is restricted by the mortgage lender for our Tucson property. As of July 31, 2026 and 2025, there were no monies held in these accounts reported on our unaudited condensed consolidated Balance Sheet as “Restricted Cash.” The Fund is intended to be used for capital improvements to the Hotel and refurbishment and replacement of furniture, fixtures and equipment. During the six months ended July 31, 2026 and 2025, approximately $145,000 and $415,000, respectively, were spent for improvements and additions to hotel properties. The capital expenditures were primarily associated with property improvements required to meet continuing Best Western standards. We consider most of these improvements to be revenue producing. Therefore, these amounts are capitalized and depreciated over their estimated useful lives. For the remainder of Fiscal Year 2027, we plan on spending less on capital improvements as we have substantially completed our property improvements at our Tucson, Arizona and Albuquerque, New Mexico hotels. Repairs and maintenance are charged to expense as incurred and approximated $188,000 and $217,000 for the six months ended July 31, 2026 and 2025, respectively.
Previous wording
We have minimum debt payments, net of debt discounts, of approximately $665,000 and approximately $2,796,000 due during Fiscal Years 2027 and 2028, respectively. Minimum debt payments due during Fiscal Year 2025 and 2026 include approximately $195,000 and $263,000 of mortgage notes payable, approximately $470,000 of other notes payable, which are unsecured promissory notes outstanding to unrelated third parties, and approximately $2,532,000 of notes payable-related party.
Current wording
We have minimum debt payments, net of debt discounts, of approximately $599,000 and approximately $3,263,000 due during Fiscal Years 2027 and 2028, respectively. Minimum debt payments due during Fiscal Year 2027 and 2028 include approximately $129,000 and $263,000 of mortgage notes payable, approximately $470,000 of other notes payable which are secured promissory notes outstanding to unrelated third parties, approximately $3,000,000 of notes payable to a related party.
Previous wording
We may seek to negotiate additional credit facilities refinancing one or both hotels, or issue debt instruments. Any debt incurred or issued by us may be secured or unsecured, long-term, medium-term, or short-term, bear interest at a fixed or variable rate and be subject to such other competitive terms as we consider prudent.
Current wording
We may seek to negotiate additional credit facilities, refinancing one or both hotels, or issue debt instruments. Any debt incurred or issued by us may be secured or unsecured, long-term, medium-term, or short-term, bear interest at a fixed or variable rate and be subject to such other terms as we consider prudent.
Previous wording
The hotel industry is highly competitive. Both the Tucson and Albuquerque hotels experienced record or near record high revenues and Gross Operating Profit (GOP Profits), in Fiscal Year 2026 (February 1, 2025 to January 31, 2026). This high revenue resulted from solid occupancy and incremental modest increases in room rates. Thus, the positive effect on gross operating profit largely resulted due to cost control measures, and modest room rate increases. Fiscal 2027 appears positive thus far, and could be favorably impacted if political unrest stabilizes, and oil prices decline, as the Fiscal Year continues. Continued competition in corporate, leisure, group, and government business in the markets in which we operate, may affect our ability to maintain room rates, hold occupancy, and maintain market share. Each of the Hotels faces competition primarily from other mid-market hotels located in its immediate vicinity, but also competes with hotel properties located in other geographic markets, and increasingly from alternative lodging facilities, such as Airbnb. While none of the Hotels’ competitors dominate any of their geographic markets, some of those competitors may have greater marketing and/or financial resources than the Trust.
Current wording
The hotel industry is highly competitive. Both the Tucson and Albuquerque hotels experienced record or near record high revenues and Gross Operating Profit (GOP Profits), in Fiscal Year 2026 (February 1, 2025 to January 31, 2026). This high revenue resulted from solid occupancy and solid room rates. The positive effect on gross operating profit largely resulted due to cost control measures. Fiscal 2027 appears positive thus far, and could be favorably impacted if political unrest stabilizes, and oil prices decline, as the Fiscal Year continues. Continued competition in corporate, leisure, group, and government business in the markets in which we operate, may affect our ability to maintain room rates, hold occupancy, and maintain market share. Each of the Hotels faces competition primarily from other mid-market hotels located in its immediate vicinity, but also competes with hotel properties located in other geographic markets, and increasingly from alternative lodging facilities, such as Airbnb. While none of the Hotels’ competitors dominate any of their geographic markets, some of those competitors may have greater marketing and/or financial resources than the Trust.
Previous wording
The Trust may not invest further in hotels, but rather diversify into investments such as the investment made by the Trust in December 2019 in the innovative UniGen Power, Inc. (UniGen), efficient clean energy electricity generation company, or the underserved IBC independent/boutique hotel market. The Trust may continue to seek further diversification including through a merger or reverse merger with a larger non-public entity seeking an NYSE-American public stock market listing.
Current wording
The Trust may not invest further in hotels, but rather diversify into investments such as the investment made by the Trust in the innovative UniGen Power, Inc. (UniGen), efficient clean energy electricity generation company, or the underserved IBC independent/boutique hotel market. The Trust is seeking further diversification including through a merger or reverse merger with a larger non-public entity seeking an NYSE-American public stock market listing.
Previous wording
We believe that the policies we follow for the valuation of our hotel properties, which constitute the majority of our assets, are our most critical policies. The Financial Accounting Standards Board (“FASB”) has issued authoritative guidance related to the impairment or disposal of long-lived assets, codified in ASC Topic 360-10-35, which we apply to determine when it is necessary to test an asset for recoverability. On an events and circumstances basis, we review the carrying value of our hotel properties. We will record an impairment loss and reduce the carrying value of a property when anticipated undiscounted future cash flows and the current market value of the property do not support its carrying value. In cases where we do not expect to recover the carrying cost of hotel properties held for use, we will reduce the carrying value to the fair value of the hotel, as determined by a current appraisal or other acceptable valuation methods. We did not recognize a hotel properties impairment loss in Fiscal Years 2026 or 2025. We did not recognize a hotel properties impairment loss for the three months ended April 30, 2026 or 2025. As of April 30, 2026, our management does not believe that the carrying values of any of our hotel properties are impaired. At the end of Fiscal 2027, (February 1, 2026 through January 31, 2027),IHT did recognize a partial impairment of its UniGen equity investment. Effective February 20, 2026, IHT Management assumed key management positions of UniGen with plans to reinvigorate UniGen to benefit UniGen debt and equity investors, including IHT.
Current wording
We believe that the policies we follow for the valuation of our hotel properties, which constitute the majority of our assets, are our most critical policies. The Financial Accounting Standards Board (“FASB”) has issued authoritative guidance related to the impairment or disposal of long-lived assets, codified in ASC Topic 360-10-35, which we apply to determine when it is necessary to test an asset for recoverability. On an events and circumstances basis, we review the carrying value of our hotel properties. We will record an impairment loss and reduce the carrying value of a property when anticipated undiscounted future cash flows and the current market value of the property do not support its carrying value. In cases where we do not expect to recover the carrying cost of hotel properties held for use, we will reduce the carrying value to the fair value of the hotel, as determined by a current appraisal or other acceptable valuation methods. We did not recognize a hotel properties impairment loss in Fiscal Years 2026 or 2025. We did not recognize a hotel properties impairment loss for the three months ended July 31, 2026 or 2025. As of July 31, 2026, our management does not believe that the carrying values of any of our hotel properties are impaired. At the end of Fiscal 2026, (February 1, 2025 through January 31, 2026),IHT recognized a partial impairment of its UniGen equity investment. Effective February 20, 2026, IHT Management assumed key management positions of UniGen with plans to reinvigorate UniGen to benefit UniGen debt and equity investors, including IHT.
Previous wording
A reconciliation of net loss attributable to controlling interests to Adjusted EBITDA for the three and three months ended April 30, 2026 and 2025 is approximately as follows:
Current wording
A reconciliation of net income (loss) attributable to controlling interests to Adjusted EBITDA for the six and three months ended July 31, 2026 and 2024 is approximately as follows:
Previous wording
An approximate reconciliation of net loss attributable to controlling interests to FFO for the three and three months ended April 30, 2026 and 2025:
Current wording
An approximate reconciliation of results attributable to controlling interests to FFO for the six and three months ended July 31, 2026 and 2025:
Previous wording
We rely on the performance of the Hotels and InnSuites ability to increase revenue to keep pace with inflation. Operators of hotels in general, and InnSuites in particular, can change and do change room rates often and quickly, but competitive pressures may limit InnSuites ability to raise rates as fast as or faster than inflation. During Fiscal Year 2026, ended January 31, 2026, InnSuites did experience increases in rates to offset the inflationary increase labor and other expenses. During the current Fiscal 2027, rates are more stable.
Current wording
We rely on the performance of the Hotels and InnSuites ability to increase rates to keep pace with inflation. Operators of hotels in general, and InnSuites in particular, can change and do change room rates often and quickly, but competitive pressures may limit InnSuites ability to raise rates as fast as or faster than inflation. During Fiscal Year 2026, ended January 31, 2026, InnSuites did experience increases in rates to offset the inflationary increase labor and other expenses. During the current Fiscal 2027, rates are stable.
Previous wording
On December 16, 2019, the Trust entered into a Convertible Debenture Purchase Agreement with UniGen Power Inc. (“UniGen”). InnSuites Hospitality Trust (IHT) made an initial $1 million diversification investment in late Fiscal Year 2020 and early Fiscal Year 2021. UniGen is in the process of developing a patented high profit potential new efficient clean energy generation innovation. The investment includes convertible bonds, stocks, and warrants to purchase UniGen stock upon election of the Trust. The investment is valued at fair value (level 3), as defined in Note 2 of the Consolidated Financial Statements. There is no Investment Commitment to UniGen requiring any restriction of cash.
Current wording
On December 16, 2019, the Trust entered into a Convertible Debenture Purchase Agreement with UniGen Power Inc. (“UniGen”). InnSuites Hospitality Trust (IHT) made an initial $1 million diversification investment in late Fiscal Year 2020 and early Fiscal Year 2021. UniGen is in the process of developing a patented high profit potential new efficient clean energy electricity generation innovation. The investment includes convertible bonds, stocks, and warrants to purchase UniGen stock upon election of the Trust. The investment is valued at fair value (level 3), as defined in Note 2 of the Consolidated Financial Statements. There is no Investment Commitment to UniGen requiring any restriction of cash.
Previous wording
The Trust purchased secured convertible debentures (“Debentures”) in the aggregate amount of $1,000,000 (the “Loan Amount”) (the “Loan”) at an annual interest rate of 6% ($15,000 per quarter). The Debentures are convertible into 1,000,000 Class A shares of UniGen Common Stock at an initial conversion rate of $1.00 per share. Newly elected UniGen management was installed, on February 20, 2026, at the beginning of the IHT Fiscal First Quarter (February 1, 2026 through January 31, 2027). New Management is looking to complete UniGen engineering and assemble two working UniGen TA1000 prototypes within the next 24 months.
Current wording
The Trust purchased secured convertible debentures (“Debentures”) in the aggregate amount of $1,000,000 (the “Loan Amount”) (the “Loan”) at an annual interest rate of 6% ($15,000 per quarter). The Debentures are convertible into 1,000,000 Class A shares of UniGen Common Stock at an initial conversion rate of $1.00 per share. IHT Officers as newly elected UniGen management, were installed on February 20, 2026, at the beginning of the IHT Fiscal First Quarter (February 1, 2026 through January 31, 2027). New Management is looking to complete UniGen engineering and assemble two working UniGen TA1000 prototypes within the next 24 months.
Previous wording
On the Trust’s balance sheet, the investment of the $1,431,180 consists of approximately $700,000 in note receivables, approximately $300,000 as the fair value of the warrants issued with the Trust’s investment in UniGen, and $431,180 of UniGen Common Stock (575,000 shares), at cost after impairment. The value of the premium related to the fair value of the warrant will accrete over the life of the debentures.
Current wording
On the Trust’s balance sheet, the investment of the $1,445,883 consists of approximately $700,000 in note receivables, approximately $300,000 as the fair value of the warrants issued with the Trust’s investment in UniGen, and $445,883 of UniGen Common Stock (575,000 shares), at cost after impairment. The value of the premium related to the fair value of the warrant will accrete over the life of the debentures.
Previous wording
As of February 20, 2026, James Wirth (IHT President) and Marc Berg (IHT Executive Vice President) constituted 100% of the UniGen Board, and is focused to assist in the success of this potentially power industry disruptive relatively clean energy generation innovation.
Current wording
As of February 20, 2026, James Wirth (IHT President) and Marc Berg (IHT Executive Vice President) constituted 100% of the UniGen Board, focused to assist in the success of this potentially power industry disruptive relatively clean energy generation innovation.
Previous wording
On March 5, 2025, REF , an investment entity owned by the chairman and family of IHT majority shareholder, purchased IBC Hotels, LLC, and hired RRF LLLP, the management company subsidiary of InnSuites Hospitality Trust (IHT), to manage the rebirth of IBC, to benefit from the substantial unfulfilled need worldwide for Independent Boutique hotel and resort reservations, Boutique branding, and related hotel services. In the process, RRF LLLP, a 76% owned subsidiary of IHT and manager of IHT hotels, obtained a five-year option to purchase, at cost, IBC Hotels, LLC . This option is believed to provide IHT a valuable opportunity, if successful, to profit from the revitalization of InnDependent Boutique Collection (IBC Hotels).
Current wording
On March 5, 2025, REF , an investment entity owned by the chairman and family of IHT majority shareholder, purchased IBC Hotels, LLC, and hired RRF LLLP, the management company subsidiary of InnSuites Hospitality Trust (IHT), to manage the rebirth of IBC, to benefit from the substantial unfulfilled need worldwide for Independent Boutique hotel and resort reservations, Boutique branding, and related hotel services. In the process, RRF LLLP, a 79.18% owned subsidiary of IHT and manager of IHT hotels, obtained a five-year option to purchase, at cost, IBC Hotels, LLC . This option is believed to provide IHT a valuable opportunity, if successful, to profit from the revitalization of InnDependent Boutique Collection (IBC Hotels).
Previous wording
In the process, independents still representing half the world’s hotels continue operation with an unfulfilled need offering significant opportunity to a provider of independent hotel reservations, boutique hotel branding, and hotel services focused on independent hotels. IHT is now in a position to benefit from this global profit opportunity through its management subsidiary, obtaining a management contract to operate IBC Hotels, LLC, and also obtaining a five-year option to purchase, at cost, IBC Hotels, LLC.
Current wording
Independent, and Boutique hotels and Resorts represent half the world’s hotels continue operation with an unfulfilled need offering significant opportunity to a provider of independent hotel reservations, boutique hotel branding, and hotel services focused on independent hotels. IHT is now in a position to benefit from this global profit opportunity through its management subsidiary, obtaining a management contract to operate IBC Hotels, LLC, and also obtaining a five-year option to purchase, at cost, IBC Hotels, LLC.
Previous wording
Hotel Operation results of the Albuquerque Hotel and the Tucson Hotel achieved record revenue and/or record Gross Operating Profit (GOP) results for the Fiscal Year ended January 31, 2026, and the First Fiscal Quarter of Fiscal 2027. Total Revenues increased to approximately $7.6 million. Solid hotel revenue results are expected for the two hotels, during the Second Fiscal Quarter of 2027, (May 1, 2026 to July 31, 2026). Despite the world geo-political uncertainty, IHT hotel operations contributed to a solid start in the current 2027 Fiscal Year (February 1, 2026, through January 31, 2027), with both the Tucson Hotel and Albuquerque Hotel achieving record results for the combined months of February through mid-June 2025, of the current Fiscal Year. Combined Revenue for both hotels was approximately $2.9 million for the First Four Fiscal Months of Fiscal 2026, a new combined record level.
Current wording
Hotel Operation results of the Albuquerque Hotel and the Tucson Hotel achieved record or near record revenue and/or record or near Gross Operating Profit (GOP) results for the Fiscal Year ended January 31, 2026, and the Fiscal First Half of Fiscal Year 2027. Total Revenues increased to approximately $7.6 million for Fiscal Year 2026 (February 1, 2025 through January 31, 2026). Total Revenues increased to approximately $4.03 million for the Fiscal First Half of Fiscal Year 2027. Solid hotel revenue results are expected for the two hotels, during the Second Fiscal Half of 2027, (August 1, 2026 to January 31, 2027). Despite the world geo-political uncertainty, IHT hotel operations contributed to a solid start in the current 2027 Fiscal Year (February 1, 2026, through January 31, 2027), with both the Tucson Hotel and Albuquerque Hotel achieving record or near record results for the combined months of February through July 2026, of the current Fiscal Year. Combined Revenue for both hotels was approximately $4.03 million for the First six Fiscal Months of Fiscal 2026, a new combined record level.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For the six months ended July 31, 2026, we had total revenue of approximately $4.03 million compared to approximately $4.00 million for the six months ended July 31, 2025, an increase of approximately $26,000, or 1%. In the prior fiscal years ended January 31, 2026, 2025 and 2024, we made significant improvements to our Albuquerque, New Mexico and Tucson, Arizona hotels. During the six months ended July 31, 2026, we had an increase in total revenue, benefitting from prior refurbishments.
Current report — wording carried from elsewhere
General and administrative expenses include overhead charges for management, accounting, shareholder and legal services. General and administrative expenses of approximately $1.03 million for the six months ended July 31, 2026 increased approximately $31,000, or 3%, from approximately $1.00 million for the six months ended July 31, 2025.