InnSuites Hospitality Trust (IHT) Q3 2025 earnings summary

Executive summary

• Nine-month revenue rose 4% YoY to $5.96M, but results swung to a $557K consolidated net loss from $612K net income, largely reflecting the prior-year $1.05M Employee Retention Credit benefit.

• Operations comprise ownership and management of two Best Western-branded, 270-suite hotels in Tucson and Albuquerque; the combined portfolio reported 79.47% occupancy for the nine months.

Financial highlights

• Nine-month room revenue was $5.76M vs. $5.64M YoY; total revenue was $5.96M vs. $5.75M.

• Nine-month operating loss widened to $254K from $130K; operating expenses increased 6% to $6.21M.

• Third-quarter revenue was nearly flat at $1.825M; operating loss improved to $130K from $150K, while consolidated results shifted to a $217K loss from $90K income.

• Nine-month loss attributable to controlling interests was $812K, or $0.09/share, vs. income of $297K, or $0.03/share.

• Adjusted EBITDA was $32K and FFO was a $36K deficit for the nine months, vs. $1.11M and $1.11M, respectively, in 2023.

Outlook and guidance

• FY2025 expectations call for continued travel demand, stable high occupancy, modestly higher room rates, cost control and revenue growth; inflation and expense control remain challenges.

• Combined hotel revenue exceeded $4.6M in the first seven months of FY2025, a record; record occupancy and gross operating profit were reported for both hotels in FY2024.

• Strategy targets sale of both hotels within 36 months and continued pursuit of a larger private reverse-merger partner; execution, timing and sale proceeds remain uncertain.