PHOENIX, May 16, 2008 /PRNewswire-FirstCall via COMTEX News Network/ ----InnSuites Hospitality Trust (Amex: IHT) Highlights:

 -- Diluted EPS increased from a loss of $(0.01) to a profit
   of $0.07 for the fiscal year ended January 31, 2008. -- Operating income increased over 96% to $2.98 million. -- The Trust
   continues to benefit from improvement in the operations of the Trust's core hotels, successful rate management strategies
   and stable industry conditions. 

InnSuites Hospitality Trust reported operating income of $2.98 million for the fiscal year ended January 31, 2008, an improvement of $1.47 million from the prior year operating income of $1.52 million. This increase of over 96% reflects continuing improvement in the operations of the Trust's core hotels and successful rate management strategies. The Trust also reported income of $1.1 million attributable to Shares of Beneficial Interest or $0.12 per basic and $0.07 per diluted share for the fiscal year ended January 31, 2008, up from a loss of $(46,430), or $(0.01) per basic and diluted share in the prior fiscal year. The change since the prior year is partially attributable to placing assets as held for sale and as a result of ceasing depreciation as of August 1, 2007. Depreciation expense decreased by approximately $1.0 million in the current year of which approximately $737,000 is attributable to Shares of Beneficial Interest. Another component of the increase in earnings is attributable to the continuing improvement in the operations of the Trust's core hotels and successful rate management strategies.

The Trust reported earnings before minority interest, interest, taxes, depreciation and amortization (Adjusted EBITDA) of $4.0 million for the twelve months ended January 31, 2008, as compared to $3.7 million in the prior year. Adjusted EBITDA is a non-GAAP financial measure that management believes provides meaningful insight into the Trust's cash flow performance.

 A reconciliation of EBITDA to net income attributable to Shareholders of Beneficial
   Interest follows: FY 2008 FY 2007 Net income (loss) attributable to Shareholders of Beneficial Interest $1,119,160 ($46,430)
   Add back: Depreciation 1,009,978 2,032,955 Interest expense 1,819,186 1,816,371 Income tax expense 192,091 316,164 Less: Minority
   interest (147,077) (428,855) Interest income (1,565) (3,431) ADJUSTED EBITDA $3,991,773 $3,686,744 

The Trust reported revenue of $22.1 million for the fiscal year ended January 31, 2008, an increase of 1.4% from $21.8 million for the prior year. The increase in revenue is primarily due to an increase in both occupancy and room rates.

The Trust's hotel operations continue to improve in the current economic and industry conditions. In addition, the Trust continues to benefit from management and trademark licensing agreements acquired during fiscal year 2005.

FUTURE POSITIONING

The Trust classified its five Hotels as "Held for Sale" as of August 1, 2007, which is part of the Trust's long-term strategic plan to migrate the focus of the Trust from a hotel owner to a hospitality service company by expanding its trademark license, management, reservation and advertising services. This plan is similar to strategies followed by international diversified hotel industry leaders, which over the last several years have been reducing real estate holdings and concentrating on hospitality services. Initially, the Trust will focus its sales efforts in the western region of the United States and concentrate its marketing efforts on unbranded hotels as well as hotels that are changing brands. Revenues from hotel operations will decline as the Hotels are sold. This decline is expected to be offset by reduced hotel operating expenses and increased revenue from additional trademark licensing and management agreements.

Your Suite Choice(R)- Value Concept

InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality business trust owning 5 moderate service and full service hotels containing 843 hotel suites and managing and/or licensing ten hotels 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 InnSuites Hospitality Trust intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to: (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) the Trust's financing plans; (v) the Trust's position regarding investments, acquisitions, developments, financings, conflicts of interest and other matters; (vi) the Trust's plans and expectations regarding future sales of hotel properties; and (vii) trends affecting the Trust's or any hotel's financial condition or results of operations. 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 which 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 the Trust's financial condition or operating results due to acquisitions or dispositions of hotel properties; h) insufficient resources to pursue our current strategies; i) concentration of our investments in the 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 the Trust operates or will operate. From time to time, these and other risks are discussed in the Trust's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

SOURCE InnSuites Hospitality Trust

http://www.innsuites.com 

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