InnSuites Hospitality Trust Completes Property Sale

6th Apr 2004

InnSuites Hospitality Trust sold its San Diego, California 131 unit hotel
property for a net price of $9.7 million on April 1, 2004. The Trust
received $4.5 million in cash after the satisfaction of its $4.8 million
mortgage note on the property, in addition to $335,000 received prior to
closing. This transaction resulted in a gain on sale of $4.7 million, of
which approximately $2.6 million is attributable to Shares of Beneficial
Interest, which will be reported in the Trust’s earnings for the first
fiscal quarter ending April 30, 2004 and for the fiscal year ending
January 31, 2005. The Trust sold its Tempe, Arizona 160 unit hotel property for a net price
of $6.8 million, its approximate book value and appraised value, on March
25, 2004 to an affiliate of James Wirth, Chairman and CEO of the Trust.
The buyer satisfied the purchase price by assuming the $1.7 million
mortgage note on the property and assuming $5.1 million of notes payable
to affiliates of Mr. Wirth. This reduction in related party notes will
result in annual interest savings of approximately $360,000.

The recent sales of the Buena Park and San Diego, California, and Tempe,
Arizona properties have reduced the Trust’s debt by $14.7 million,
significantly strengthening the Trust’s financial position. With improved
economic conditions, combined with the sale of the underperforming
Scottsdale and Flagstaff properties as well as gains on asset sales, the
Trust projects it will report a profit in fiscal year 2005 for the first
time in five years. The Trust has continued its efforts to upgrade its
product during the economic challenges of the prior three years. Funds
provided by recent hotel sales will allow the Trust to continue selective
upgrades to enhance the profitability of the six “core” hotel properties
remaining in the Trust’s portfolio.

InnSuites Hospitality Trust is a mid-market value studio and two-room
suite hospitality real estate investment trust with 6 moderate service and
full service hotels containing 940 hotel suites located in Arizona, New
Mexico and Southern California. For reservations, call 1-888-INNSUITES, or
visit For investor information, visit


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