InnSuites Hospitality Trust (IHT) reported hotel operating results for the first three fiscal quarters of 2026, covering February 1 to October 31, 2025. Total hotel revenue for the period was $5,809,673, down 2.5% from $5,959,490 in the comparable nine‑month period of 2024. Net income before non‑cash depreciation and Best Western Rewards Guest Voucher expenses was a modest $48,000 loss, indicating that cost controls have kept the company close to break‑even despite a 3% decline in room revenue.
The revenue decline was driven by a modest drop in room revenue, which fell 3% year‑over‑year. Occupancy and average daily rate (ADR) data explain the mix shift: the Albuquerque property posted a 90.87% occupancy rate with an ADR of $104.06, while the Tucson property recorded a 70.95% occupancy rate and an ADR of $87.70. The stronger performance in Albuquerque helped offset the weaker Tucson results, but the overall room revenue still slipped, contributing to the slight revenue decline.
Cost discipline has been a key theme for IHT. Operating expenses were largely contained, allowing the company to maintain a near break‑even position. The $48,000 loss is a small deviation from the prior year’s $48,000 loss, showing consistency in margin management. The company’s focus on controlling discretionary spend and optimizing staffing levels helped mitigate the impact of the revenue dip.
IHT continues to pursue diversification beyond its core hotel operations. The trust manages the InnDependent Boutique Collection (IBC Hotels) and holds an investment in UniGen Power, a clean‑energy company. In addition, both hotels are being marketed for sale while remaining operational, signaling a potential shift toward asset monetization. The company’s long‑standing dividend history—55 consecutive years of uninterrupted payments—provides a measure of stability for income‑focused investors.
Financial health remains a concern. Multiple sources highlight negative equity, tight liquidity, and elevated financial risk. The company’s debt load, including mortgage and related‑party notes, adds pressure to cash flow. The decision to list the hotels for sale may be a strategic move to reduce leverage and improve liquidity, but it also signals that the company is exploring ways to strengthen its balance sheet.
Management has not issued new guidance for the next quarter, but the focus on cost control, diversification, and potential asset sales suggests a cautious outlook. Investors should monitor the company’s liquidity metrics and the progress of the hotel sales, as these factors will shape IHT’s ability to sustain near‑break‑even operations and maintain its dividend legacy.
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