InnSuites Hospitality Trust News

InnSuites' Fully Diluted Earnings Per Share Up 75%

PHOENIX, June 17 PRNewswire-FirstCall — InnSuites Hospitality Trust (Amex: IHT) Highlights:

— Fully diluted earnings per share increased to $0.14 from $0.08 in the prior year three-month period.

— Operating income increased $637,000, or 40%, to $2.2 million for the first three months of fiscal year 2009 ended April 30, 2008 compared to the three-month period ended April 30, 2007.

InnSuites Hospitality Trust reported operating income of $2.2 million for the first three months of fiscal year 2009 ended April 30, 2008, an improvement of $637,000, or 40%, from the prior year three-month period operating income of $1.6 million. Components of the increase in earnings include the continuing improvement in the operations of the Trust's core hotels, successful rate management strategies and reduced depreciation for assets held for sale.

The Trust reported net income attributable to Shares of Beneficial Interest of $1.5 million, or $0.16 per basic and $0.14 per diluted share, an increase of over 67% for the three months ended April 30, 2008, from $899,000, or $0.10 per basic share and $0.08 per diluted share, for the prior year three-month period.

James Wirth, President and CEO of the Trust said, "The first fiscal quarter (February 1 to April 30, 2008) results for InnSuites Hospitality Trust show fully diluted earnings per share up 75%, at $0.14 cents per diluted share from $0.08 in the prior year three-month period, showing a continuation of past trends. The prior fiscal year-end fully diluted earnings per share of $0.07 were also up from the prior year-end loss $(0.01) per diluted share. These large increases are attributable to better value and service for our guests, new rate setting computer software, better cost control and increased customer satisfaction based on continuation of extensive refurbishment with flat-screen TV's, granite countertops and both free hard-wired and WiFi hi-speed internet in all of InnSuites studios and suites."

For the remainder of the current fiscal year, clouds are on the horizon in the hotel industry due to a slowing economy and higher fuel costs. However, InnSuites is experiencing strength relative to the rest of the industry with the continuation of refurbishing, boutique fashion trends, as well as tightened cost control and internet marketing as more and more travelers move to the value-oriented InnSuites Suite Hotels and value suite concept "By the day and extended stay."

In view of strengthening earnings and substantial cost-driven equity asset value, InnSuites continues to seek methods to increase shareholder value, including potential asset disposition in the current, still relatively strong commercial real estate market. With strong earnings, strong cash flow and a share price, which management believes does not fully reflect the underlining assets, the Trust continues its share and unit repurchase program on the American Stock Exchange open market.

Your Suite Choice(R) — Value Concept

InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality trust owning 5 moderate service and full service suite hotels containing 843 hotel suites and managing and/or licensing 10 hotels with 1,562 suites located in Arizona, New Mexico, Texas and Southern California. For reservations, call 1-888-INNSUITES, or visit http://www.innsuites.com. For investor information, visit http://www.innsuitestrust.com.

Certain matters within this press release may be discussed using forward-looking language as specified in the 1995 Private Securities Litigation Reform Act and we intend that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to: (i) expectations of growth in our financial and operating results, (ii) expectations of reductions in costs incurred by us, and (iii) expectations that the travel and hospitality industries will continue to improve in the near future. InnSuites Hospitality Trust cautions that these statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements contained herein. Such risks include, but are not limited to: a) fluctuations in hotel occupancy rates, b) changes in room rental rates that may be charged by InnSuites Hotels in response to market rental rate changes or otherwise, c) seasonality of our business, d) interest rate fluctuations, e) changes in governmental regulations, including federal income tax laws and regulations, f) competition, g) any changes in our financial condition or operating results due to acquisitions or dispositions of hotel properties, h) insufficient resources to pursue our current strategy, i) concentration of our investments in our InnSuites Hotels(R) brand, j) loss of franchise contracts, k) real estate and hospitality market conditions, l) hospitality industry factors, m) our ability to meet present and future debt service obligations, n) terrorist attacks or other acts of war, o) outbreaks of communicable diseases, p) natural disasters, q) loss of key personnel, and r) local or national economic and business conditions, including, without limitation, conditions which may affect public securities markets generally, the hospitality industry or the markets in which we operate or will operate. From time to time, these and other risks are discussed in our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

SOURCE InnSuites Hospitality Trust

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